Ashfield Council leader Jason Zadrozny accused of fabricating heritage group to commit fraud

Jason Zadrozny, leader of Ashfield District Council, faces 12 fraud charges after allegedly creating a fake society to divert public funds into his personal account.

Ashfield council leader 'invented heritage society to pocket public grants', court told

The leader of Ashfield District Council fabricated a heritage organisation in order to siphon thousands of pounds of public funding into his own bank account, Northampton Crown Court heard on Tuesday.

Google News UK — Crime (en) reports that Jason Zadrozny, an Ashfield Independent councillor aged 46, of Stanton Hill, has pleaded not guilty to 12 counts of fraud and four counts of tax evasion.

Prosecutor James Varley told jurors that Zadrozny — who at the time also held a seat on Nottinghamshire County Council — opened a bank account in the name of the Ashfield Heritage Society (AHS) in February 2018. Three days later, he applied for £7,500 in funding for the group through the Councillors' Divisional Fund, a £5,000 pot allocated to every county representative for the support of local organisations. Of that total, £3,500 came from his own allocation.

The AHS application described the body as a "new society to support heritage projects in Ashfield". The address listed on the form, 213 Forest Road, does not exist, the court heard.

Nottinghamshire County Council approved the grant. The funds were sent directly to Zadrozny, who deposited them into the AHS account before withdrawing them in cash the following month.

Varley alleged part of that money was channelled toward the purchase of a house on Forest Road — the same street given as the fictitious address for the AHS. Financial records shown to the court indicate Zadrozny had previously transferred £12,000 to his friend Thomas Hollis in connection with the property. A second friend, Helen Smith, subsequently bought the house for more than £70,000, with prosecutors arguing the funds originated with Hollis and included money from Zadrozny.

A further £5,000 in cash — also said to have come from Zadrozny — was paid toward the purchase just 14 minutes after he withdrew £2,000 from his bank account. He had withdrawn an additional £3,000 the day before. When the property was sold in September 2021 for £168,000, Smith paid Hollis £97,000 and transferred more than £68,000 as a "gift" to Zadrozny.

In August 2018, Varley continued, Zadrozny applied for a further £1,600 for the AHS for "funding towards the cost of commemorative events, badges, poppies and road decorations". That money was withdrawn in cash within minutes of receipt; £1,580 appeared in his personal account four minutes later.

Varley described the AHS as a "scam" created because Zadrozny was "short of money".

The court also heard that in 2018 Zadrozny co-founded the Classic Cinema Club (CCC) alongside district councillor Ciaran Brown. Varley said the club had a genuine basis — it was intended for enthusiasts of "Carry On" films — and received £1,200 through the Councillors' Divisional Fund. However, the club never held any events. Over three days in June 2019, at a point when Zadrozny's personal account was overdrawn, the money was withdrawn in cash.

The alleged scheme came to light in March 2021, when Catherine Mason, who was considering standing for election in Ashfield, began examining expenditure from the Councillors' Divisional Fund and encountered references to the AHS. The month before its discovery, Zadrozny had applied for a further £625 in funding for the group, despite it having carried out no activity in the local community for more than two years.

After social media posts began circulating about his conduct, Zadrozny telephoned council members, saying he had "made a mistake" and that the AHS no longer existed. He attributed partial responsibility to a "respected local figure" and claimed he had intended the £625 for the Kirkby Heritage Centre but had erred.

Nottinghamshire County Council launched an investigation and subsequently referred the matter to police.

Varley also told the court that Zadrozny failed to declare rental income from four properties he owns, resulting in the four tax evasion charges.

Smith, Hollis, and Brown have not been charged with any offence in connection with the investigation, the court heard. The trial continues.

Source: Google News UK — Crime (en)