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The former Labour MP Margaret Moran fiddled her parliamentary expense claims to receive more than £53,000, a jury has ruled.

Moran, 57, who served as MP for Luton South from 1997 until the 2010 general election, has been found unfit to stand trial due to mental health issues.

Jurors at Southwark crown court were, therefore, unable to return a guilty verdict. Instead, in a trial of issue, which she did not attend, they found that she had committed 15 counts of false accounting and six counts of using a false instrument.

The evidence put before them included that Moran had claimed nearly her entire annual allowance in one bogus entry, and had forged invoices for more than £20,000 of non-existent goods and services. She was found to have falsely claimed around £60,000 in parliamentary expenses between 2004 and 2008, of which she received £53,000.

She will not face a criminal conviction due to her ill health after the jury reached a unanimous verdict on all counts. She may be subject to a supervision order, a hospital order or absolute discharge, where no further action is taken against her.

Adjourning the disposal of the case to a later date, the judge, Mr Justice Saunders, said: “She is presently being treated by psychiatrists at home and that treatment will continue.”

Moran’s false expenses claims are the largest amount uncovered in the wake of the MPs’ expenses scandal which broke in 2009. James Sturman QC, defending, had told the jury the case represented “a very, very unhappy period for British democracy”.

The court heard Moran submitted an invoice for £22,500 in August 2008 – just under the annual maximum expense allowance for an MP – to treat dry rot at her Southampton home, using the money instead to fund “home improvements”.

She was able to make the dry rot claim by “flipping” her two homes – changing which property was her second home and therefore allowing her to claim expenses on it.

One invoice in August 2007 was for £14,805, apparently for boiler repairs and work on her conservatory in her constituency home in Luton, when it was actually at her house in Southampton, the court heard.

On another fake bill for more than £4,000, address details given for a building firm were those of an elderly couple.

Moran had remained defiant immediately after the expenses scandal first broke, defending her claims by insisting: “Any MP has to have a proper family life. They have to have support of their partner.”

She announced she was standing down at the general election after growing public anger and a “Get Moran Out Now” campaign in her constituency, and said she was suffering from stress.

But, in March 2010, she was among several MPs caught agreeing to use their position to influence government policy for cash in a Channel 4 Dispatches and Sunday Times sting.

Moran was suspended from the Labour party following the revelations. The following month, the parliamentary standards commissioner, John Lyon resumed his investigation into her, which had been suspended because she was too ill to co-operate. In September last year, the Crown Prosecution Service announced she would face criminal charges.

Visibly distressed, she wept inconsolably throughout a hearing at Westminster magistrates court in September 2011.

Moran was ruled unfit to plead after psychiatric reports submitted to the court said she was suffering from severe depressive mental illness and extreme anxiety and agitation, due to the stress of the court proceedings and issues in her childhood. The judge was told it had left her at risk of suicide and that she had tried to harm herself.

She also suffered feelings of abandonment by the Labour party and “intense shame” that her parliamentary career was over.

Far from the “exuberant personality” she once was, she latterly spent her days “walking the dog, doing some cooking and watching TV”, consultant psychiatrist Philip Joseph told a fitness to plead hearing in April held at Lewes crown court.

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