THE former chief executive of an NHS Trust has denied defrauding it by siphoning off more than £20,000 to a company run by her husband.

Paula Vasco-Knight, from Runcorn, is alleged to have carried out the frauds in 2012 and 2013 while she was in charge of the South Devon NHS Foundation Trust, which runs Torbay Hospital.

Her husband Stephen has also denied receiving money fraudulently and businessman Habib Naqvi has denied facilitating the offence.

The allegations concern a payment of £9,000 made between October 2012 and April 2013 to a company run by Mr Vasco-Knight.

Mrs Vasco-Knight is also alleged to have sent details of rival bids for a contract to produce leaflets to her husband via Mr Naqvi in August 2013.

The third charge alleges she authorised a payment of £11,072 to her husband for work that was not done.

Mrs Vasco-Knight, 52, of The Seasons, Runcorn, denied three counts of fraud when she appeared at Exeter Crown Court.

She is alleged to have “committed fraud by abusing her position as chief executive officer of the NHS Trust by ignoring normal procurement procedures."

Mr Vasco-Knight, 45, of the same address, denied one count of fraudulently receiving £11,072 in November 2013.

Mr Naqvi, 28, of Wells Road , Bristol, denied three counts of encouraging the commission of offences. He is alleged to have liaised with Mr or Mrs Vasco-Knight to process payments or pass on details of bidders.

Judge Graham Cottle adjourned all the cases for a two week trial in January 2017 and released the three defendants on bail.

Mr and Mrs Vasco-Knight appeared by video link on Friday from Liverpool Crown Court  while Mr Naqvi attended in person and stood in the dock.

Mrs Vasco-Knight was at one time NHS England's national lead on equality and diversity matters.