A FORMER Poole Tourism boss who defrauded his employees and the tax man to the tune of nearly £130,000 has been branded a "Walter Mitty character".

Patrick Baker, 61, deducted income tax and National Insurance contributions from staff at three firms he operated in Blandford between May 2009 and April 2013, but never informed HM Revenue and Customs (HMRC).

As well as deducting £116,876 from staff salaries, Baker charged his customers £10,806 in VAT without being VAT registered.

As a result, none of the money was passed on to the government. His actions also threatened staff members' pensions.

Employees raised concerns about gaps in their income tax and national insurance records and HMRC launched an investigation.

Prosecuting at Bournemouth Crown Court, Tim Bradbury said: "The offences occurred when the defendant was operating several companies from Barnack Chambers in Blandford Forum.

"Businesses of which he was director, I think the sole director.

"All provided a variety of different marketing services, such as the production of online holiday guides."

The firms were Freedom Days, WAUK and Forum Media Marketing.

Mr Bradbury said Baker had between six and 10 employees at any one time, but kept poor records. Staff had to "pressure" him to receive pay slips and P60 forms.

Baker had previously worked for a similar firm, Freedom Publishing, from the same location, where "he was very aware of and involved in deductions from staff wages".

Baker, who lives in Winterborne Anderson, had admitted one count of fraud by abuse of position and another of fraudulent evasion of VAT.

In mitigation, Edward Henry said his client was undergoing an experimental treatment programme for health problems, including ulcerative colitis and osteoporosis, and urged he be spared an immediate jail term.

Judge Brian Forster QC heard from consultant gastroenterologist Dr Peter Irving during a sentencing hearing.

The doctor said his patient, 61, is severely ill and faces a colectomy - a surgical procedure to remove all or part of the colon - if the treatment fails.

Sentencing Baker to two years in prison, suspended for two years, as well as 240 hours of community service and a six-month curfew, Judge Forster said he had been "blatant" in his offending.

Baker was head of Poole Tourism during the mid-1980s, during which time the industry was estimated to be worth £70 million a year to the town.

He was said to have overseen a boom in visitors and was part of the tourism advisory panel to the Association of District Councils.

In 1992 he was made redundant by the authority and went on to direct tourism marketing at Poole Pottery.

Speaking after the case, Maggie Daniel, mum of former employee Darren Cooper, said: "He's a Walter Mitty character.

"That sums him up. He lives in a fantasy world where he lives his own lies.

"He lied more and more and convinced himself that his lies were the truth."

Richard Wilkinson, assistant director of HMRC's fraud investigation service said: "Baker lined his own pockets at the expense of his own staff and the wider taxpaying public.

"Tax was deducted from his staff and VAT charged to customers, but he ripped them off by failing to pay the money to HMRC.

“His fraud could have cost people pensions and other benefits they were rightfully entitled to."