Posted on the 1st May 2026 in PHTM News

TRUSTED FRIEND JAILED FOR DESTROYING HULL TAXI FIRM IN £670K FRAUD

A "cruel and devious" company director has been jailed for four years after stealing more than £671,000 from a Hull taxi firm to fund her secret cocaine and gambling addictions.

Gemma Phoenix, 44, admitted to abusing her position at Hull Cars Ltd in a betrayal that left the company’s owner "devastated" and forced him to sell his life’s work.

Phoenix had worked for the business for a decade and was so highly regarded that her boss considered it a "no brainer" to promote her to director.

However, between March 2023 and August 2024, she used her control over the accounts to divert roughly £10,000 every single week into her own bank account. To avoid being caught, she gave the payments legitimate-looking names in the company records.

The fraud was uncovered when staff noticed their pension contributions had stopped. When the owner finally confronted her, Phoenix confessed to the theft.

The financial hole she left was so deep that the owner had to remortgage his home and take out a £100,000 loan just to keep things afloat and pay his staff. Ultimately, he was forced to sell the business for half of its true value.

"When I discovered what Gemma had done, I felt like my stomach had been ripped out," the 63-year-old owner told the court. “I felt absolutely betrayed and taken advantage of. I looked on her as a friend, not just an employee. I had so much trust in her.”

He added that it was "devastating to no longer have the business that I worked so hard to build."

In court, it was revealed that Phoenix was trapped in a "spiral" of addiction. Her lawyer stated that she feels "deep shame" and "is so very, very sorry for what she did."

Despite her previously clean record and a letter of apology, the judge handed down a four-year prison sentence, noting the “shocking breach of trust” that destroyed a successful local company and ruined her friend’s livelihood.

Police Constable Chelsea Walker, who led the case, described Phoenix as a "business fraudster" who operated "hidden in plain sight."

"She was considered a trusted member of the business responsible for managing all the accounts, paying drivers and staff, and making crucial contributions to their pensions," Constable Walker said.

"Not only did Phoenix steal people's hard-earned cash, she also severely impacted their future financial security and stability, with no regard as to how this would affect them."

While Phoenix offered an apology in court, the damage to her former coworkers was already done. Constable Walker noted that the sentence serves as a reminder of the deep personal sting felt by those who once viewed the fraudster as a friend.

"I hope that her sentence will give her ample time to think about the crime she committed and how it has impacted not only the company, but the colleagues who considered her friends and who were betrayed by her in such a trusted role," Walker added.


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