A former research director with a “pathological” gambling habit has been jailed for six years for stealing almost £5 million from Birmingham University.

Paul Sadler led a double life while siphoning off funds from Birmingham Research and Development Ltd (BRDL), only being brought to justice after suspicions were raised as he holidayed in Bermuda with his mistress.

Sadler, aged 50, teamed up with his principal book-keeper to perpetrate the massive fraud, the city’s crown court was told.

Sadler was paid around £270,000-a-year to run the wholly-owned subsidiary of the University of Birmingham. BRDL is no longer trading.

Judge Patrick Thomas QC heard that Sadler, of London Road, Worcester, frittered away £2 million during a decade-long losing spree at a single casino. The judge, who jailed Sadler’s co-defendant, Christine Eggleton, for two years, described the fraud as a gross breach of trust which had “broken” a highly successful enterprise.

Sadler and Eggleton, 51, of Farren Road, Birmingham, both pleaded guilty at a previous hearing to conspiracy to defraud and theft.

Eggleton admitted stealing £2,085,539, while Sadler acknowledged he had taken £4,999,516 over a period of more than a decade.

Passing sentence, Judge Thomas told Sadler: “You have gambled and you have lost, and you knew perfectly well that the stakes were high – and that the sentence would be significant.”

The judge said profits made by BRDL, which marketed innovations generated by university staff and students, should have gone to support its enormously valuable educational work.

But, from as early as 1994, Sadler had set about a “perfectly deliberate and cold-hearted” fraud. Judge Thomas said Sadler was able to get away it because he was trusted by staff. He added that only custody was appropriate, saying the system “would be a laughing stock” if people could steal millions then walk away from court.

Subsequent civil action against Eggleton led to the recovery of £1,400,000, while around £800,000 has been recovered from Sadler.