THE wife of a disgraced York solicitor has escaped all punishment for helping him cheat his law firm out of £1.4 million.

Simon Morgan, 50, formerly of Upper Poppleton and later of Bilbrough, is currently serving seven years in prison after a jury convicted him of six charges of theft from Milners law firm in Leeds where he was a partner and his wife Ann Young-Morgan, 55, was account manager.

But though a jury has declared she played a full part in the fraud, Judge James Goss QC gave her an absolute discharge because she has mental health problems.

Simon Bass, a partner of Milners, said: “In my view, she hasn’t been held to account for what she did.

“Let us not forget that she and her husband betrayed a lot of people and caused a lot of hurt. The only consolation is that he was convicted and is now serving a jail sentence.”

Young-Morgan, 55, now said to be “living as a hermit” under her daughter Kelly’s care, was declared unfit to stand trial alongside her husband, on psychiatric grounds.

The jury were asked to consider whether she was part of the fraud, without deciding on whether she was a criminal. They decided both spouses used their position to siphon funds from office and client accounts to fund a lavish lifestyle that included a five-bedroom house in an exclusive part of north Leeds with its own swimming pool and jacuzzi and frequent trips to London and New York.

After the jury returned its verdict, the judge considered giving her a two-year court order with psychiatric treatment.

But defence barrister Edward Moss said her doctors had decided her condition was “untreatable” and she would not co-operate with them.

In January, the judge was told she was suffering from “deranged narcissistic preoccupation” – or being so self-absorbed she was mentally unstable. Nicholas Dry, for the prosecution, said it was highly unlikely the court would be able to find a doctor willing to treat her, as would be required for the order.

The judge said he “reluctantly” gave her an absolute discharge. “I am of the view that little purpose, probably no purpose, would be served by taking this matter further,” he said.

Mr Dry said should Young-Morgan recover, then the prosecution would look again at the case.