Michael Eke received the honour from the Queen in 2003
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A man who was awarded an MBE by the Queen after applying for it himself could now be stripped of the honour.
Former police worker Michael Eke, 38, of March, Cambridgeshire, admitted the offence at Norwich Crown Court.
The Cabinet Office said: "The Sovereign may, on the advice of ministers, cancel an award if the holder is considered unworthy to retain it."
Eke was convicted of using a false instrument with intent, in reference to the honours form used for nominations.
The court heard he wrote two fake references to the Cabinet Office, in the name of other people, recommending him for the honour.
Admitted theft
He then sent more letters using false names to local community leaders, asking them to back the application.
Eke received the MBE in 2003 for his services to the community.
He was among 140 people chosen to carry the Olympic torch on the London leg of its 78-day journey to the Athens Games in 2004.
He was a stationery stores manager for Cambridgeshire Police until he was arrested and suspended in February 2005.
Eke admitted seven counts of theft, including the theft of laptop computers and digital cameras from Cambridgeshire Police, and four counts of obtaining a money transfer by deception.
False information
At a previous hearing, he pleaded guilty to obtaining a pecuniary advantage by deception by using false information on an application form to the force.
The court heard that Eke used his job to help steal four laptop computers worth more than £5,000.
He also obtained grants by deception from arts and other organisations worth about £25,000.
Judge Paul Downes adjourned sentencing until 3 October for reports.