Pub manager Paul Kempster has been given a suspended jail sentence after a court heard he used fictitious debts to hide its true financial position.

Jeremy Hill-Baker prosecuting told Leeds Crown Court as a result of his false accounting, Kempster was able to maintain his position at the Huntsman Inn in Holmfirth and keep the business going leading to bonuses for him.

He said had the brewery JW Lees known the true position about debts sooner they would at the very least have “restructured” the business.

Kempster, 45, of Cleavedon Drive, Wigan admitted false accounting and was given a 21-month prison sentenced suspended for two years with 250 hours unpaid work.

Mr Hill-Baker said deposits from functions such as weddings at were used to pay staff while fictitious debtors were created as Kempster sought to keep the business looking extremely profitable.

He had impressed the brewery after he began working at the Greenfield Road pub in 2005 but in 2012 they decided to change a policy allowing debtors 90 days to pay bills to 30 days instead. Pressure was put on Kempster to bring the level of debts down but he became evasive and sent e-mails saying other pubs and hotels in the area had closed while his way of running the business had kept the Huntsman afloat.

The Huntsman Inn

By April 2013 he admitted using the debtors list to hide the position and that he had used customer function deposits to cover other costs. A brewery representative went to the Huntsman and found four boxes of documents had been dumped in the bins.

A financial investigation estimated debts of around £254,000 and a functions deposit shortfall of around £89,000.

Mr Hill-Baker said there was no evidence of Kempster siphoning off money for his own benefit but rather keeping the business afloat to his own employment advantage.

John Harrison representing Kempster said his fault had been “running the business as his own rather than someone else’s” when they were bearing the risks. He said that was a very different case to the fraud initially alleged against the defendant.

He had increased the turnover at the public house as a result of his actions. It was accepted that had led to performance bonuses for him but his motivation was to keep the business going for everybody.

Judge Tom Bayliss QC said Kempster was involved over a number of years in exposing his employers to the risk of loss which came to light when they reduced the time for debts to be paid.

“It became apparent over a period of years you had used money from the public house and concealed the fact by use of the debtors account. The quantification is difficult but it is certain that false debt was created and that amounted to as much as £350,000.

“The debt enabled you to continue trading and for the business not to be closed but it is equally clear there was a profit or may have been profit at times and to assess the loss to the brewery in that sum would I accept be artificial.”

“What is clear is that whatever the true position a business that was not profitable was kept going as a result of the false accounting you were involved in.”

A spokesperson for JW Lees said: “Paul Kempster pleaded guilty to charges and has been sentenced accordingly, we can now focus on the future of the pub.

"The team at the Huntsman Inn is being led by a fantastic new manager, Stewart Bellerby. He and the team at The Huntsman deserve every success and we hope that everyone can now put this sorry episode behind them."

Det Insp Jim Griffiths, who led the police inquiry, said: “This was a very complex enquiry to both understand and investigate. "The fact that this matter came to notice clearly shows that frauds such as this will be discovered and those responsible, like Mr Kempster will be brought to justice. "I am pleased that this particular crime was identified when it was otherwise it could have had an impact in the local community with the loss of a well-used pub.”