Ashfield council leader’s deposit into bank account minutes after withdrawing taxpayer cash was ‘coincidence’

He denies 12 counts of fraud by false representation and four counts of income tax evasion and is now standing trial at Northampton Crown Court.

James Varley KC, prosecuting, previously said Zadrozny was the sole signatory on the bank accounts of the Ashfield Heritage Society and the Classic Cinema Club after applying for grants of £10,300 in taxpayer cash.

Nottinghamshire County Council allows councillors to allocate up to £5,000 a year towards worthy projects in their area from their divisional funds.

Zadrozny denies withdrawing the heritage society and cinema club cash for his own personal use.

He told police he withdrew £9,100 from Ashfield Heritage Society money before handing it over to colleague Tony Brewer, who, he said, used it to restore local war memorials.

In a September 2021 police interview, Detective Sergeant Daniel Weaver said £1,600 was withdrawn from the Ashfield Heritage Society at the Lloyds bank in Sutton.

Minutes later, a total of £1,580 was paid into Zadrozny's personal account and that minutes after that, £1,590 was transferred to his savings account.

"I would have been conducting my own business whilst I was in branch,” Zadrozny told the detective. “I would have finished whatever I was doing with Tony and then gone off and done my own business. I'm always paying in cash or taking cash out.

"It's just a coincidence. It's not the same money. I don't know where Tony spent it, but it went to him."

Zadrozny also told police that the Classic Cinema Club never held any events due to logistical issues, but that the £1,200 county council funding was safe at his home and had not been touched.

In the September 2021 police interview, DS Weaver said the "entire contents" of the Classic Cinema Club's bank account were withdrawn by Zadrozny over three days in June 2019.

Minutes after the final withdrawal, a similar amount of money was again paid into Zadrozny's personal bank account in two deposits.

DS Weaver said in the interview: "It looks like that cash from the Classic Cinema Club has gone into your personal account."

"Well it hasn't,” Zadrozny replied. “The other earlier transactions must have gone into the folder."

Northampton Crown Court previously heard that when his home was searched he handed DS Weaver a folder labelled Classic Cinema Club with £1,200 within it.

"I've never spent a penny of that money, ever, on anything", he told police in the September 2021 interview.

The court heard he and fellow Ashfield Independent councillor Tom Hollis were “very supportive” of each other and would loan each other money, despite Zadrozny earning £70-£80,000 per year and owning properties that were “dotted around the area.”

Zadrozny previously described himself as a "habitual" cash user and told police he would normally have £5,000 or £6,000 in cash at any given time, which he kept in DVD cases, under the bed, or the sock drawer.

He was re-arrested and interviewed in March and November 2022 but continued to deny stealing public funds and made no comment to all questions on both occasions.

On Thursday, September 3, Sam Robinson KC, defending, asked DS Weaver if he was aware of a picture of Mr Brewer unveiling a war memorial.

DS Weaver agreed he took a draft statement from one of Mr Brewer’s colleagues who confirmed he had been involved with the Ashfield Heritage Society but conceded he did not get her to sign it.

The court also heard Ashfield MP Lee Anderson also spoke to Mr Brewer’s family – which was “rather naughty,” said Mr Robinson - and DS Weaver agreed he had not spoken to the MP.

The court previously heard Zadrozny volunteered himself to HMRC in early 2022 and had to pay nearly £9,605 in unpaid tax on rental properties across the six tax years from April 2015, as well as penalties and interest.

Mr Varley said: "Because the police had to look into his bank accounts, they became aware of the rental income. He then made a voluntary disclosure to the taxman.

"We say he only told the taxman because the police told him they knew. We say he knew he should have been paying his tax."

Zadrozny denies being knowingly concerned in the fraudulent evasion of income tax between 2007 and 2022.

The trial continues.