Army major accused of defrauding MoD out of £40k for school fees

Army major accused of defrauding MoD out of £40,000 to pay boarding school fees for his two children tells court martial serving in military is ‘toxic’ for marriages

  • Royal Engineer Lloyd Hamilton allegedly claimed £38,892 to pay school fees  
  • 47-year-old was not eligible for the money because he lived apart from his wife
  • He told a court today that serving in the military was ‘toxic’ for married couples

A major in the British Army accused of defrauding the forces out of £40,000 today told a court that serving in the military was ‘toxic’ for married couples.

Royal Engineer Lloyd Hamilton allegedly claimed the money to pay for his children to go to an exclusive boarding school as his marriage was crumbling.

The father-of-two, 47, is accused of fraudulently taking the money despite being based in Cyprus while his wife lived at their £500,000 Hampshire home.  

Major Hamilton was only eligible to claim education allowances as long as his wife Liz was living with him, Bulford Military Court in Wiltshire heard.

Royal Engineer Lloyd Hamilton (pictured outside Bulford Military Court), allegedly used thousands of pounds of tax payers’ money to send his two children to an exclusive independent school

He claimed that at the time he believed his marriage, which was in ‘substantial difficulties’, would survive and his wife would continue to live with him in the Mediterranean.

He claimed that was why he believed he was entitled to continue to apply for £38,892 worth of fees to send his two children to a top boarding school.

But prosecutors allege he instigated the break up and told his wife it would be best if she stayed in the UK at their £500,000 four bedroom home in Hamble, Hampshire, instead.

Prosecutors say the majority of the fees at the £49,875-a-year boarding school were paid for fraudulently by the Major because he knew he was no longer eligible. 

The alleged fraud took place over 12 months between July 2017 and August 2018, while Major Hamilton was based at RAF Akrotiri, Cyprus.

In text messages sent in September 2017 his wife, a Cambridge educated IBM manager, begged him to give their marriage a chance.

She said: ‘I love you and want to try and stay married. I would be lost without you please don’t stop talking to me I love you.’

The court previously heard that following a breakdown in their marriage, Major Hamilton's wife remained at their £500,000 four bedroom home in Hamble, Hampshire (pictured)

The court previously heard that following a breakdown in their marriage, Major Hamilton’s wife remained at their £500,000 four bedroom home in Hamble, Hampshire (pictured) 

Major Hamilton told the court his wife hated the Mediterranean heat and they both viewed the military as a ‘toxic’ environment for married couples.

Giving evidence, he said: ‘Liz doesn’t like the army. She never has done. We have always looked on it as a toxic environment.’

He claimed that until April 2018 he and his wife were still trying to work on their marriage despite the fact she was rarely living with him in Cyprus.

Prosecutors previously said that Major Hamilton’s wife was away from Cyprus for 298 days during the 12 months the offences were alleged to have taken place.

In order to claim the education allowance, a partner’s spouse can only be away from their work address for 90 days over a year long period.

Major Hamilton told the court: ‘We were still in a relationship, we argued like everybody else but we were still in a relationship.’

The court martial heard that as the relationship deteriorated further, Liz asked her husband if he was going to speak to Army lawyers about starting divorce proceedings.

The court heard Major Hamilton sent his wife texts saying he knew he was being investigated for fraudulently claiming £38,892 worth of fees to send his two children school

The court heard Major Hamilton sent his wife texts saying he knew he was being investigated for fraudulently claiming £38,892 worth of fees to send his two children school

Previously, the court heard Major Hamilton threatened his wife, warning her that telling the Army of their marital problems would lead to their children having to leave private school. 

Major Hamilton, who was awarded an MBE for charity work, said: ‘I suppose as work progressively got more on top of me the arguments came more her way because I wasn’t winning in work. I took it out on her, is the best way to put it.’

He admitted that at the time he was also struggling to cope with the loss of his mother and a close childhood friend.  

He denies two charges of fraud. The trial, expected to last five days, continues.