
Former sub-postmaster Lee Castleton becomes first individual to sue Post Office and Fujitsu after uncovering 'fraud'
Why you can trust Sky News
A sub-postmaster made famous for being portrayed in the ITV Post Office drama is taking the state-owned body and Fujitsu to court.
Lee Castleton has become the first individual former sub-postmaster to launch High Court action against the Post Office and the maker of the Horizon faulty computer software.
It was the Horizon accounting software created by Fujitsu that wrongly generated financial shortfalls, making it appear that Mr Castleton owed the Post Office money.
Mr Castleton wrongfully had a judgment issued against him in 2007 for taking £25,000.
He is bringing the challenge against the organisations after it emerged Fujitsu withheld its error log during the prosecution.
Had it been included it would have been clear Horizon contained bugs, errors and defects.
0:58
This failure to disclose means the judgment against him was obtained by fraud, he will argue.
"We also believe the judgement was obtained by fraud in that the Post Office and Fujitsu knew perfectly well that the Horizon system wasn't working properly," his solicitor Simon Goldberg said.
The Post Office and Fujitsu maintained there were no errors with Horizon until 2019.
While prosecutions against sub-postmasters have been overturned en masse through one-off legislation, the civil judgment against Mr Castleton was not captured by the law and still stands.
Uncovered fraud
The revelation that information was withheld from Mr Castleton during his trial came out during the public inquiry into the Post Office Horizon scandal.
The inquiry was established to create a clear account of the implementation and failure of the Fujitsu-created software.
As part of the scandal, more than 700 sub-postmasters were prosecuted for theft and false accounting.
Many more, like Mr Castleton, were declared bankrupt as they struggled to plug the imagined shortfalls.
The judgment also destroyed his business, livelihood, and reputation in his community.
It had a devastating long-term impact on his and his family's health.
He was awarded an Order of the British Empire (OBE) in the New Year's honours list.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Telegraph
an hour ago
- Telegraph
Starmer offers BBC rivals chance to join forces
Sir Keir Starmer has opened the door to mergers between the BBC's commercial rivals as they come under mounting pressure from streaming. The Government on Monday set out plans to remove barriers to allow broadcasters such as ITV, Channel 4 and Channel 5 to join forces as part of its new Industrial Strategy. Ministers said they would examine 'possible consolidation between broadcasters which may benefit their financial sustainability and audiences', as well as 'closer strategic partnerships'. The Competition and Markets Authority and Ofcom will be asked to review their definitions of the TV and advertising markets to include, for instance, YouTube and Netflix. Such moves would reduce the market share of broadcasters, making it much more likely that regulators could approve a merger of their advertising sales operations, or even an ITV takeover of Channel 5 and Channel 4. 'Economies of scale' Investors and television industry leaders are increasingly arguing for such consolidation to cut costs as audiences and advertisers migrate to streamers. Less radical steps are already being taken in that direction. ITV, Channel 4 and Sky last week struck a deal to pool their online advertising spots to mount a stronger challenge to the massive scale of YouTube. The three broadcasters currently each operate their own television advertising sales house. Bringing them together would be an obvious next step, but would require regulators to agree that streaming competition means it would not be too powerful a monopoly. The Government pointed to broadcasters in other countries pursuing mergers to 'increase economies of scale'. It added: 'We must take active steps to ensure our domestic broadcasters can adapt to this changing market, and continue their support for independent producers of all sizes so that IP [intellectual property] remains in the UK. 'The financial sustainability of our PSBs [public service broadcasters] is under pressure as they compete for content and advertising revenues with global media and technology companies.' TV troubles It comes as ITV is locked in discussions over a deal that could result in either a sale of the broadcaster or a deal to spin off its lucrative production business. Banijay, the French production powerhouse behind Big Brother and Peaky Blinders, has reportedly held discussions with ITV over a potential bid. All3Media, the UAE-owned group behind shows including The Traitors and Race Across the World, has also been linked to a possible deal. ITV, which has struggled with an advertising downturn in recent years, has been viewed as ripe for a break-up as a sharp decline in its share price has pushed its valuation to just £3bn, down from a peak of more than £11bn in 2015.


Sky News
3 hours ago
- Sky News
What is the Strait of Hormuz - and why does it matter to global trade?
👉 Listen to Sky News Daily on your podcast app 👈 Iran is threatening to close the Strait of Hormuz, the world's busiest oil shipping channel, in retaliation for the US strikes on its nuclear facilities. How might the global economy be affected, including the price of oil? On today's episode, Dominic Waghorn is joined by Sky News economics editor Ed Conway to discuss the consequences of Iran's next move.


BBC News
5 hours ago
- BBC News
Post Office scandal victim upset by £60k bill for legal fees
A former Surrey sub-postmistress who was wrongly jailed while pregnant during the Post Office's Horizon IT scandal says she has been caused "great upset" by a demand of £60,000 for legal Misra, who ran a post office in West Byfleet, was one of more than 900 sub-postmasters convicted of theft, fraud and false accounting based on faulty computer data between 1999 and Nick Gould worked on a pro bono basis to get her conviction overturned in 2021, and Ms Misra then agreed to pay for any further legal work. But she said she has received "no details" as to exactly what work he had done Gould has not responded to BBC Surrey's request for a response. Ms Misra was jailed for 15 months in 2010 after being accused of stealing £74,000 from her Post Office was sent to Bronzefield prison on the day of her eldest son's 10th birthday, and gave birth to her youngest child while still in April she was one of four leading campaigners to receive an OBE for their service to her conviction was quashed, Ms Misra has received an undisclosed amount of interim compensation, but has not yet received the final BBC understands that Ms Misra signed a retainer in 2021, after her conviction was quashed, for the provision of "commercial legal services" provided by Mr Gould moving was agreed Mr Gould would charge for his time at a fixed hourly rate. However, emails seen by the BBC show Mr Gould has since claimed that this agreement was changed to one where Ms Misra would pay the lesser of £60,000 or 5% of any compensation she received from the Post Office. Despite Ms Misra paying Mr Gould more than £20,000, she disputes this later agreement and says she has been given no details of what time Mr Gould in fact spent working on her the time, Mr Gould was working for Aria Grace Law, who said he was removed from professional duties at the firm in January, "following serious concerns regarding his conduct".A spokesperson for Aria Grace said: "Mr Gould does not and must not be taken to speak for Aria Grace." Why were hundreds of Post Office workers wrongly prosecuted?'The Post Office has ruined every happy moment of my life since 2005' They said the firm stood with the victims of the Post Office scandal, and honoured their resilience."We condemn any conduct that seeks to exploit their trust or harm their recovery," they Misra said she would "always be grateful" for the support Mr Gould gave on being asked to pay £60,000 for legal services provided by Mr Gould since her conviction was overturned, she said: "I felt uneasy but I trusted Nick that this must be correct if he, a solicitor, was telling me so."Despite paying in excess of £20,000, in May she received a legal letter on behalf of Mr Gould's current legal firm, Impact Lawyers, saying she would be sued if she did not pay what they said was Wallis, a former BBC journalist who continues to cover the Post Office's Horizon IT scandal, told BBC Radio Surrey that Ms Misra had contacted him "in some distress"."All Seema wanted to know was what work he had done to justify the bill," he added. Ms Misra said she wanted to avoid conflict with Mr Gould "after all his pro bono support for us and because my family and I have already been through quite enough".She added: "I asked for details of exactly what work he had done since my conviction was set aside to justify this, but have received no details."Last month I received a letter from lawyers representing Nick Gould's current legal firm, Impact Lawyers, telling me I would be sued if I did not pay what they said was outstanding."She said she would defend the case if his firm sued her."I don't think Nick has acted as a solicitor should and the whole thing has caused me and my family great upset," she added."I hope Nick Gould and Impact... will now do the right thing and drop the matter so that we don't have to carry on worrying about it and spending further time on it."A spokesperson for Impact Lawyers told the BBC they were unable to comment.