A woman got a job with Brighton and Hove council even though its officers were prosecuting her for helping run a rip-off mock auction shop.
Lisa Firth started work at Brighton and Hove City Council just weeks after she was arrested following a raid on The Outlet by its trading standards department.
While the council's lawyers spent £50,000 compiling its case against Firth and five others, she was working in the same building. She has since been suspended.
Firth, 30, was one of six people prosecuted by the city council for conspiring to defraud the public at the store in Brighton city centre.
She was convicted on Tuesday and faces up to two years in jail.
Firth, of Greenacres, Shoreham, was arrested on November 30, 2001, after an investigation by trading standards officers.
The following February she began working in a casual administrative role at the council's offices in Kings House.
She was put on a contract in October last year.
When a colleague realised Firth was involved in the court case and quizzed her she insisted she was just a witness.
It was not until some time later it was discovered she was one of the accused and had been in charge of the day-to-day operation of the store.
She was suspended from her job at the council on November 26 last year.
The council yesterday said Firth would have had no access to the legal department or its files but said it would be reviewing its procedures.
A council spokeswoman said: "Since her involvement with this case came to light, she has been suspended and a disciplinary hearing will be convened in the near future.
"Ms Firth was working in an area of the council where she would have had no access to the legal department or its files.
"Due to the nature of her work, Ms Firth would not have been subject to an enhanced check for criminal records but she would have been subject to the council's own code of conduct for employees.
"This states it is the employee's responsibility to declare any interests or activities which would be in conflict with the council."
Trading standards officers launched an investigation into The Outlet in North Street in October 2001 after receiving more than 50 complaints.
Officers discovered the gang was luring people inside with promises of major discounts on high-quality, branded goods although most of the "bargains" never existed.
When the auction-style sales were over, customers were hustled outside, where they discovered their purchases were faulty or of poor quality.
After the jury returned guilty verdicts, Firth turned on the man she had considered her boss and shouted: "How could you do this to me? I have a son."
Firth and the others will be sentenced on March 4.
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