THE FOUNDER of a flagship free school and two members of staff have been warned they could face prison sentences after all three were convicted of fraud offences.

Sajid Hussain Raza, 43 of Spring Gardens Road, Heaton, Bradford who was the founder and principal when the Kings Science Academy opened in 2011, was unanimously convicted by a jury at Leeds Crown Court today on four counts of fraud, three counts of false accounting and two of obtaining money transfer by deception.

His sister Shabana Hussain, 40, of Wilmer Road, Heaton, Bradford, who was a teacher at the academy, was found guilty by the jury on one charge of fraud and one of acquiring criminal property.

Daud Khan, 44, of Thornhill Place, Thornbury, Bradford, who was financial director when the academy opened, was unanimously convicted on two counts of fraud and three of false accounting.

Adjourning sentence until a date to be fixed in September Judge Chris Batty told them: “You have been convicted of serious offences and I am very much considering custody in each of your cases.”

“I haven’t yet decided and I will hear mitigations on that day and some submissions about what basis I sentence you upon. I will grant you bail in the meantime.”

The jury, comprising seven women and five men, spent just over a day deliberating on the verdicts and were told they could attend the sentencing hearing if they wanted.

The setting up of the Academy had the full support of the Tory Government. The then-Prime Minister David Cameron visited it in March 2012.

The prosecution claimed the trio diverted public money which was intended for the academy in Lidget Green, and created false documents to cover their tracks such as fabricated invoices from teachers, in the months prior to the opening. Invoices for building rent were also inflated.

Simon Kealey prosecuting told the jury the total loss was around £150,000 to the Department for Education because of false claims made when grants were paid to the school which had strict conditions attached to them.

“In summary, the defendants treated public money as their own, paying themselves what they wanted whether they were entitled or not and when challenged to provide proof of expenditure documents were fabricated to cover their tracks.”

Raza was said to be having financial problems with his buy to let properties because he had county court judgments against him, providing a motive for what happened in his case.

Three of the charges related to him inflating his salary on mortgage applications when he bought properties in Dove Street, Shipley; Bradford Road, Shipley and Spring Gardens, Forster Square, Bradford.

Shabana Hussain was recruited as a head of department at the new school and the prosecution said she received some credits into her account knowing they were fraudulent.

All three denied any dishonesty. Khan said he put through invoices on instructions of Raza. The jury were told that Khan had not received any unlawful credits into his bank account but that his role as finance director meant the offences could not have occurred without his dishonest participation.

After the case, senior investigating officer, Detective Superintendent Jon Morgan said: “This was a complex inquiry which involved a thorough investigation of all aspects of school’s governance and its finances over a number of years. Raza, Hussain and Khan were in positions of trust, stealing thousands of pounds of public money which was intended for the development of a newly formed academy. They acted selfishly and dishonestly in obtaining these funds and I would like to thank everyone who has helped uncover their unscrupulous activities and brought them to justice.”

Peter Mann, head of the Complex Casework Unit at CPS Yorkshire and Humberside, said: “Raza’s motive for his crime is clear. He was in considerable financial difficulties as his buy to let business had been running at a considerable loss. He had fraudulently obtained mortgages by stating a grossly inflated salary.”

“Far from being a model school, Raza treated the Academy like a family business employing his relatives there and for at least the first 12 months operating with no proper governance. His co-defendants were also drawn into his criminality. Hussain, Raza’s sister receiving unlawful payments and Khan helping to falsify documentation.”

Raza was sacked from the school in August 2014 after an internal disciplinary investigation, and the school was taken over by the Dixons Academy Chain. In January 2015 it became Dixons Kings Academy, with a new governing body and head, Neil Miley.

After today’s verdict Sir Nick Weller, chief executive of the Dixons Academy Trust, said: “Together with all our academies, Dixons Kings' accounts have been externally audited. The report is unqualified.

“It finds that public money has been spent appropriately, and that our Trust is compliant with the EFA Financial Handbook, the Charity SORP regulations, UK accounting standards and the Companies Act 2006.

“Dixons Kings is an excellent school with a bright future. Highly committed staff, supportive parents and successful students are all making a very positive contribution to standards of education in Bradford.”

A Department for education spokesperson said: "All allegations of financial mismanagement are taken extremely seriously and the free school programme is designed so that these issues can be dealt with far more quickly than in council-run schools.

“In this case, the Education Funding Agency acted as soon as allegations were made and, thanks to that swift action, inappropriately used public funds were recovered.”

After the verdict Kevin Courtney, General Secretary of the National Union of Teachers said: "It is disgraceful that these three individuals pocketed public money intended for the education of Bradford children for their own personal gain. They have been convicted unanimously and will have to pay a heavy price for their fraudulent activity.

"However there are further questions surrounding these events which remain unanswered and for which the Department for Education and Education Funding Agency must answer.

"This was one of the first of Michael Gove's flagship free schools. In the haste to open the school, it is clear that insufficient due diligence was carried out on the individuals establishing this school, particularly in light of the revelations made in the course of this trial that the school's founder and former principal had financial problems.

"There are many unanswered questions and for this reason the NUT is continuing to call for a public inquiry into this matter. Where public money is concerned both the individuals entrusted with it and the government agencies who hand it over to them must be answerable for how it is spent. In this case there are serious concerns about failures at the highest level in the Department for Education."