James Stewart
James Stewart has been jailed for four years after being convicted of fraud.Police handout

A disgraced school principal who transformed his school office into a "sex lair" where he kept sex toys, lubricant, condoms and alcohol has been jailed for four years for fraud.

James Stewart had been executive principal for almost 30 years at Sawtry Village Academy until 2014, when he left the college after a Department for Education investigation was launched into his running of the school.

The "greedy" and "bullying" headteacher spent thousands of pounds of taxpayers' money furnishing his offices with custom-made furniture, a drinks cabinet, and a piano.

Stewart's office was also found with penis-shaped straws, a fridge full of champagne, wipes and cushions which were used as a makeshift bed in an "inner sanctum".

Huntingdon Law Courts heard the 72-year-old defrauded the school of £100,000 to fund a lavish lifestyle and elaborate office, where he had sex with his secretary during school hours.

The court heard how Stewart spent the stolen money on London hotels and left the school to watch horse racing, whilst drinking heavily during the school day.

Detective Constable Al Bassam, of Cambridgeshire Police, said Stewart set up his office as a sex 'dungeon', according to the Mirror.

"The office was described by a witness as being set up like an apartment with a lounge area, dining area with cooking facilities and a bedroom area, made up of sofa cushions on the floor," he said.

"One room contained a dining table, six chairs, three comfy chairs and a coffee table. There was a hand crafted dresser and several cupboards containing glasses and places with custom made oak furniture and doors that had been fitted.

"There was a sink and toilet described as being in the 'inner sanctum' which had been partitioned with towels and rugs on it.

"Within there items of a sexual nature were found, such as a large purple vibrator, two further vibrators in a drawer a selection of condoms, wet wipes, tissues, a game called saucy charades, a pack of penis shaped drinking straws, a finger clitoral stimulator, some watermelon lubricant, and six coasters with scenes from the Karma Sutra on them."

By the end of his tenure Stewart was deemed a "racist, sexist, fattist bully" by staff, the court heard, with the school left in a "dire financial" position by the fraud. The school was placed in special measures after an Ofsted inspection in 2014.

Stewart, of Kimbolton Road, Bedford, admitted four counts of fraud and one of misconduct in a public office and was jailed for four years after leaving the school in financial difficulty, reported the BBC. Stewart has since paid back the £100,000.

Associate principal Alan Stevens was given a 24 week suspended sentence in addition to 80 hours unpaid work, for also defrauding the school with fake expense and credit card claims.