Businessman jailed for fraud over distance learning

A businessman has been jailed for seven years for defrauding students and the Government out of £16 million.

Michael Smallman, of Northallerton, North Yorkshire, used the money to fund gambling and buy racehorses, Teesside Crown Court was told. His wife, Angela, 41, was found guilty of money laundering and sentenced to 15 months. The court was told that Smallman, who owned the National Distance Learning College, in Middlesbrough, lured 80,000 students to sign up for his home-study courses, but that only 18 ended up with a genuine qualification. Smallman also cheated the Government by claiming grants intended to help students with fees.

Yesterday Smallman, 45, who had been convicted of fraudulent trading and money laundering after a four-month trial, apologised for his “mistakes”.