Pensioner who sold her 'unsaleable' sewage-flooded home for £780,000 must repay a £225,000 Thames Water payout

Karen Imber, 68, of Warley Road, Woodford Green, Essex, sold her £817,000 home for £780,000 — then one month later reached a £225,000 settlement with Thames Water, claiming the same property was worthless and could not be sold. A High Court judge has now found she has no arguable defence to a fraud claim, ordering repayment of the full £225,000.

Imber had already received £500,000 from Thames Water after her home was flooded with sewage in 2006 and 2007.

Deputy Master Alexandra Marzec ruled the money must be paid back and left open the possibility of Thames Water seeking additional damages on top.

The judge said 'ordinary decent people would plainly regard it as dishonest' to pocket a payout for a house that had already sold.