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For more on marking an answer as the "Best Answer", please visit our FAQ.There is a wonderful book called "Supreme Courage" written by General Sir Peter de la Billiere.
In it it says 8 medals have been forfeited for desertion in order to avoid investigation of a disgracced offence, theft of a cow!, theft of a comrades medals?, theft of 10 bushels of oats, desertion on active service, theft and embezzlement from an officer, bigamy and theft of iron!
Queen Victoria said there should never be a reason for the medals to be forfeited but in 1931 a new warrant was signed King George V reserved the right to 'cancel and annul the award"
If you get the chance, read the book its very humbling indeed.
Edward St John DANIEL:
Whatever the full truth of Daniel's offence, on 4th September 1861 Queen Victoria signed the Royal Warrant that made Edward St John Daniel the first man to forfeit the Victoria Cross:
"Whereas it hath been reported unto us that EDWARD ST. JOHN DANIEL late a Lieutenant in Our Navy, upon whom we have conferred the decoration of the Victoria Cross, has been accused of a disgraceful offence, and having evaded enquiry by desertion from Our Service, his name has been removed from the list of officers of Our Navy ... Know ye therefore, that we are pleased to command and declare that the said Edward St. John Daniel shall no longer be entitled to have his name enrolled in the Registry of persons on whom we have conferred the said decoration, but shall be and he is hereby judged and declared to be henceforth removed and degraded from all and singular rights, privileges and advantages appertaining thereunto."
Of the 1354 Victoria Crosses that have been awarded to date, only eight have been forfeited, for offences ranging from theft of a cow to bigamy. Of these, Daniel was the only officer and the only Royal Navy man. The last forfeiture was in 1908. In 1920, King George V expressed his displeasure with VC erasures, his Private Secretary stating in a letter the King's view that:
"no matter the crime committed by anyone on whom the VC has been conferred, the decoration should not be forfeited. Even were a VC to be sentenced to be hanged for murder, he should be allowed to wear his VC on the scaffold."
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there was initally a pension attached to a VC ( 1/- a week?) and this was to be forfeited if the hodler was convicted of a criminal offence.
Of course one was - theft of a loaf I think - and so this was rethought. At least one died a pauper - Sgt Jones VC (Rorke's f=drift) who died indigent in 1915 and is bured in Philips park Cemetery