Driving instructor spent cheque he received in error and told his wife he'd won the lottery

Instead of returning it to the rightful owner, the 38-year-old driving instructor scribbled his name on the cheque and was amazed when his bank paid it into his private account without question.

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He solved the next problem of what to tell his wife by inventing a fictitious lottery win - and then, of course, went on a spending spree.

With an extra £20,724 to his name, father-of-three Houseman spent most of it on life's luxuries.

He bought a £2,000 plasma television, a £9,000 Fiat Uno car, along with personalised registration plate, and booked a luxury foreign holiday.

But an investigation was launched when the missing cheque was reported and before long the "lottery winner" was exposed as a fraud and a thief.

Houseman, of Harrogate, North Yorkshire, pleaded guilty to theft at York Crown Court and was sentenced to 200 hours community work.

Judge Geoffrey Marson criticised the Abbey National bank for accepting the cheque, which had "clearly" been altered, and he said Houseman was only spared jail because he had been suffering from depression when the offence was committed.

He said: "It was a thoroughly dishonest and greedy offence and in normal circumstances would have resulted in an immediate prison sentence.

"You spent it on luxury items but I am satisfied that it was brought on by your depression rather than any desire for luxury living."

The court heard the cheque was posted in February 2005 by a Harrogate-based financial firm in Regent Parade and was delivered to Mr Houseman in error.

Made out to Flintshire County Council, the money belonged to a man, not linked to the defendant, called Stephen Harrison, who was transferring his pension fund before starting a new job.

Chris Smith, prosecuting, said: "The cheque was sent in error to his home address. He saw his chance and was unable to resist cashing it in himself.

"He added his name, J Houseman, after Flintshire County Council, and it was somewhat surprisingly cashed by Abbey National Bank. His private account was then credited."

Mr Smith added: "He's treated it as a lottery win and told his wife he had had a lottery win."

He said the pension fund was currently more than £40,000 out of pocket as a result of Houseman's fraud because it had to reimburse the employee, and the money paid to Houseman had not yet been recovered.

John Harrison, defending, said his client had been diagnosed with depression and post-traumatic stress disorder after a he suffered facial injuries in an unprovoked street attack in 2002.

In what was believed to be a case of mistaken identity, he was assaulted with a screwdriver and later lost his job as a computer software designer as a result.

"He was seeking, however misguidedly, some relief from the financial pressures he was under which led to the unravelling of his life in early 2005," he said.

Houseman is still with his wife with whom he has two children and he also has one child from a previous relationship.

A proceeds of crime hearing is due to be heard next year.