An agent who fraudulently used tenants’ deposits in order to try and keep his failing business going has been spared jail.

Simon Cawley, 53, a director of the now dissolved Severn Sales and Lettings in Worcester, admitted a single count of fraud after taking £7,640 in deposits and failing to pass on rent payments.

Cawley was spared an immediate jail sentence when he appeared at Worcester Crown Court.

Instead, he was sentenced to nine months in prison, suspended for two years. He must pay £700 costs.

The court heard that he should have placed the deposits into a tenancy deposit scheme but failed to do so.

The judge in the case praised landlords for doing “the decent thing” and reimbursing the tenants themselves, despite the fact they are legally obliged to do so in such cases.

The fraud involved victims at six properties in Worcester, and took place between January 1, 2013, and February 28, 2015.

Defending Cawley, who is now living in Devon, Jason Patel said he was of previous good character.

Cawley, who had been trading as an estate agent since 1988, set up his own business in 2004, which he rebranded in 2012.

He had entered a guilty plea at the pre-trial preparation hearing.

He now works as a landscape gardener.

Judge Nicolas Cartwright said: “As part of your role as a letting agent you were supposed to be taking a deposit of money and putting it into a deposit protection scheme so that, in due course, tenants who didn’t have deductions from their deposit could get their money back.

“You used that money in order to ease your own cash flow difficulties, effectively robbing Peter to pay Paul.

“The offence easily crosses the custody threshold but I’m going to give you a chance by imposing a suspended sentence.”

A proceeds of crime hearing is to be held in July, according to the Kidderminster Shuttle.