Heartbroken kids have been told their playgroup is closing down - because a crooked treasurer pilfered £3,600 from its funds.

Volunteer accountant Lorraine White, 40, had been stealing cash from Tiny Toes Play Centre, in Delaware Road, Shoebury, since December 1998, a court heard in January.

The money-grabbing mum was given just a one-year suspended sentence because she had to look after her four-year-old son. She has so far managed to pay back only £500 of the £3,600 she stole.

An angry assistant supervisor at the playgroup, Tracy Lawla, said today (Friday): "This is a sad day, and we are all very upset about what has happened.

"Yesterday we had to take the painful decision to close. It was clear we were financially ruined by the recent events."

She added: "The playgroup never managed to recover from that financial loss."

A judge at Basildon Crown Court heard in January that White was responsible for collecting fees, banking, organising wages and other financial duties at the Delaware Road pre-school.

White, of The Chase, Foulness, claimed she was being threatened to repay loans and turned to the playgroup's funds, said a prosecutor at the court.

She said she could not borrow from legitimate sources because of a county court judgment and previous default problems.

The playgroup was faced with additional problems when primary schools started taking pupils at an earlier age, which meant fewer children attending the playgroup, added Mrs Lawla.

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