A MAN who was overpaid more than £12,000 in benefits has been told to expect a prison sentence after being found guilty of fraud.

Liam Ozel Peddy, formerly from Bridport, was convicted by his peers for two counts of fraud following a two-day trial at Dorchester Crown Court.

Peddy, of no fixed abode, was found guilty of committing fraud between February, 2012, and October, 2013, by dishonestly failing to inform West Dorset District Council he was receiving income from self-employment, intending to make a gain in housing benefit and council tax benefit.

In addition to this, he was found guilty of committing fraud between October, 2011, and October, 2013, by dishonestly failing to inform the Department for Work and Pensions (DWP) of his income, intending to make a gain in Job Seekers Allowance.

Peddy, who received benefits first in Yeovil and then in Bridport, denied both charges.

The court heard Peddy applied for benefits under the premise that he had no other form of income.

Marcus Tregilgas-Davey, prosecuting, said Peddy signed a declaration at the job centre every fortnight informing staff that there was no change in his circumstances.

Whilst doing so however, the court heard Peddy received money through buying and selling motorcycles and associated parts.

Mr Tregilgas-Davey said: “In 2012 alone he earned somewhere in the region of £11,500 from that sideline.

“At no point did he tell the DWP or anyone else that for that matter he was buying and selling items and receiving an income from it.”

The court heard Peddy had been overpaid £5,529.80 in housing benefit, £952.89 in council tax benefit and £5,592.66 in Job Seekers Allowance.

Peddy told the court he didn’t believe there was a need to disclose information about buying and selling bikes to the authorities.

He said: “I didn't think selling my personal belongings was a source.”

Peddy said he had up to 10 bikes during the period under question. He said he would buy a motorcycle, improve it and sell it to get a better model.

Tim Shorter, defending, asked Peddy when he felt he had to alert authorities to a change of circumstance.

He said: “If I work, paid or unpaid, if I get married, if change address, if I moved out of the area, or if I get sick.”

When asked about the deposits in two of his bank accounts, Peddy said he received money from family and friends.

Jurors reached a unanimous guilty verdict on both counts. The case has been adjourned whilst a pre-sentence report is carried out.

Judge Peter Johnson released Peddy on bail but told him to prepare for a short custodial sentence.