diff --git a/CheckMemoryLeak.cpp b/CheckMemoryLeak.cpp
index ec0a12cf1..fcbf18138 100644
--- a/CheckMemoryLeak.cpp
+++ b/CheckMemoryLeak.cpp
@@ -385,7 +385,7 @@ static void CheckMemoryLeak_CheckScope( const TOKEN *Tok1, const char varname[]
         }
 
         // Return without deallocating the memory..
-        if ( Alloc != No && alloc_indentlevel >= 0 && dealloc_indentlevel <= 0 && Match(tok, "return") )
+        if ( Alloc != No && (indentlevel==0 || (alloc_indentlevel >= 0 && dealloc_indentlevel <= 0)) && Match(tok, "return") )
         {
             bool retvar = false;
             for ( const TOKEN *tok2 = tok->next; tok2; tok2 = tok2->next )
@@ -435,8 +435,15 @@ static void CheckMemoryLeak_CheckScope( const TOKEN *Tok1, const char varname[]
                 }
             }
 
-            if ( indentlevel <= alloc_indentlevel )
+            if ( indentlevel == 0 )
                 return;
+
+            if ( indentlevel <= alloc_indentlevel )
+            {
+                Alloc = No;
+                alloc_indentlevel = -1;
+                dealloc_indentlevel = -1;
+            }
         }
     }
 }
diff --git a/tests.cpp b/tests.cpp
index 32858211d..ea802f033 100644
--- a/tests.cpp
+++ b/tests.cpp
@@ -595,6 +595,18 @@ static void memleak_in_function()
     check( CheckMemoryLeak, __LINE__, code, "[test.cpp:8]: Memory leak: s\n" );
 
 
+    code = "static char *f()\n"
+           "{\n"
+           "    char *s;\n"
+           "    if ( abc )\n"
+           "    {\n"
+           "        s = new char[10];\n"
+           "    }\n"
+           "    return s;\n"
+           "}\n";
+    check( CheckMemoryLeak, __LINE__, code, "" );
+
+