'Arrogant' fraud duo are jailed.

A FORMER policeman and an insurance company manager who funded a lavish lifestyle of hotels and prostitutes with money obtained in a pounds 1.43 million fraud have been jailed.

Stephen Spellacy, 36, and John Taylor, 35, were described as greedy and arrogant after their sentencing at Leeds Crown Court.

Taylor, an operations manager at Norwich Union in York, was jailed for five years after earlier pleading guilty to conspiring to defraud the insurance company and conspiracy to launder the proceeds.

Spellacy, who worked for Humberside Police for 13 years, was sent to prison for eight and a half years after admitting two counts of conspiracy to launder money and possession of a gun and ammunition.

Five other men were also jailed.

Taylor, from York, abused his position to redirect pounds 1.1 million from the company and to obtain money from dormant accounts. Spellacy, from Pocklington, used money from these accounts to buy high-value watches from jewellers in York.