WIREDGOV

An illegal Ukrainian immigrant and a former high street bank employee, who organised a £3.2m self assessment tax fraud, were jailed today following a lengthy investigation by HM Revenue & Customs (HMRC).

Oleg Rozputnii was sentenced to three years and nine months imprisonment, and Nikola Novakovic was sentenced to 3 years and three months imprisonment at Harrow Crown Court. Rozputnii is also subject to automatic deportation.

Oleg Rozputnii, 28, of no fixed abode and Nikola Novakovic, 34, from North London, registered over 1,050 fictitious taxpayers on the Income Tax Self Assessment system. They swindled tax repayments using over 200 false bank accounts to commit the fraud. Between January 2008 and September 2010 they stole £3.2m in the scam.

The money was withdrawn from cash points or was transferred through a web of linked accounts set up by the fraudsters. Rozputnii used numerous false identities to help commit the fraud and conceal his involvement, whilst living illegally in the UK. He also arranged for some of the financial proceeds to be transferred back to the Ukraine.

Their accomplice Dmytro Shepel, 26, a Ukrainian, also from London, was jailed for three and a half years at Woolwich Crown Court in August 2010, for his part in the fraud. He will be deported upon release.

Upon sentencing, Mr Recorder Singh QC said:

"This was a sophisticated and orchestrated fraud ", adding that Novakovic "had abused his position with the bank."

Joe Rawbone, Assistant Director of HMRC Criminal Investigation said:

"These men ran an audacious scam stealing millions of pounds. They set up hundreds of false bank accounts using viruses to hack into personal computers to gain information. They used their illegal profits to fund lavish lifestyles buying performance cars, including Porches, Mercedes and Jaguars. HMRC takes tax fraud extremely seriously and we will recover any financial gain from this criminal activity."

Both men pleaded guilty to 'Cheating the Public Revenue' at a hearing in March and were sentenced at Harrow Crown Court today.

Notes for editors

Oleg Rozputnii, DOB 22.09.1982, (also known as Oleg Martinovs, Kai Wagner, Viktors Dedjusko, Peter Friesen, Dietmar Hein and Dmitry Kubartas), a Ukrainian national of no fixed abode, but linked to addresses in Finchley, Leyton, Hanger Lane and South Ruislip and other addresses in North, East and North West London, pleaded guilty at Harrow Crown Court to Cheating the Public Revenue contrary to common law on 8 March 2011. He was sentenced to 3 years 9 months imprisonment on 8 April 2011. Rozputnii is also subject to automatic deportation upon release in accordance with Section 32 of the UK Borders Act 2007.Nikola Novakovic, DOB 08.02.1977, of 67 Gascony Avenue, Kilburn, London, a former local business manager at a bank, pleaded guilty at Harrow Crown Court to Cheating the Public Revenue contrary to common law on 8 March 2011. He was sentenced to 3 years 3 months imprisonment on 8 April 2011.Dmytro Shepel (also known as Dimitrijus Kubartas), DOB 22.03.1985, of 31 Dando Crescent, Kidbrooke, London pleaded guilty to Cheating the Public Revenue and possessing an identity document that was false contrary to section 25 of the Identity Cards Act 2006. On 3 August 2010 he was sentenced for both offences to three and a half years and one year, to run concurrently. Confiscation proceedings are in place.HMRC criminal investigators worked with the Metropolitan Police to co-ordinate arrests and house searches. During searches of Rozputnii’s Mercedes and Novakovic’s two Porsches officers found records detailing numerous false bank accounts used to receive the tax repayments, false utility bills used to substantiate addresses and handwritten notes with details of fake identities. If anyone has any information to report to HM Revenue & Customs (HMRC) about any individuals or businesses that may be evading tax, please contact the Tax Evasion hotline by calling 0800 788 887 or via the website www.hmrc.gov.uk/tax-evasion.Photos of the defendants and their cars are available from http://nds.coi.gov.uk/Content/Detail.aspx?ReleaseID=419103&NewsAreaID=2&ClientID=257

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Contacts:

HMRC Out of Hours
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Jonathan Hall
Phone: 020 7147 0052
jonathan.hall@hmrc.gsi.gov.uk