Former sub-postmaster Harold Churchill left court with a suspended jail term after a judge heard how he embezzled more than £34,000.
The 57-year-old, who ran Bratton post office and shop for 13 years, stole the money over a 17-month period until his arrest in March this year.
But after reading a list of character references from villagers, many of whom who were in the public gallery at Swindon crown court, judge John McNaught suspended a 12-month prison term for two years.
Earlier he had been told how Churchill had started taking money to pay his own debts in August 1998, telling the Post Office that the money was in cash balances at the office.
The court heard that he had VAT and income tax bills and had initially 'borrowed' the money from the Post Office to try and settle the debts, but it got out of hand.
In March this year, when a full audit was begun, Churchill took the auditor to one side and told him there would be a shortfall in the region of £34,000.
Churchill, who took over the post office after spending 11 years as a captain in the merchant navy, had no previous convictions, the court was told. At a previous hearing he pleaded guilty to theft.
Claire Marlowe, defending, said there was a great deal of feeling within the village that Churchill and his wife had provided a community service.
She said: "They would go out of their way to increase the community spirit of that village.
"They would go out of their way to deliver things to the elderly and infirm members of the community.
"Obviously, this was a man who was struggling to cope with a business. Twenty seven years as a merchant seaman did not prepare him for that."
Suspending the sentence, the judge told Churchill: "I don't recall ever seeing such an impressive bunch of testimonials."
He told him that normally he could expect a 12 to 18-month prison term but said he had taken 'a very exceptional course'.
He said: "I wouldn't want people to read about this and find people can steal £34,000 from the Post Office and not go to prison."
The judge also declined to make a compensation order, hearing Churchill was now bankrupt, saying that was now a matter for the civil courts.
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