If he was transferred to Washington would he not then have been able to purchase the house in Lost Wages, stop collecting the housing allowance for that, and then legally claim a housing allowance for his rented apartment at his new post in Washington? This would have negated the need for his blundering subterfuge.
Just curious.
Is what he told his wife, while reprehensible, in reality, just between them and a moot point from a legal standpoint except, perhaps, as proof of intent to defraud provided hearsay is allowed. Can a spouse even testify against his/her partner in the UK?