ASSETS RECOVERY
AGENCY News Release (ARA 07/07) issued by The Government News
Network on 20 February 2007
Assets Recovery
Agency Financial Investigators have secured a Confiscation Order
for £310,000 against convicted benefits fraudster Paul Doherty of
Sillwood Street, Brighton.
Between 1995 and 2006, Mr Doherty claimed housing benefit and
council tax benefit totalling £53,364 while claiming to be a
tenant of the property at Sillwood Street. He was not entitled to
this as he was not in fact a tenant of the property, but was
actually purchasing it by way of mortgage, the repayment of which
was supported by his benefits money. Mr Doherty created a
fictitious tenancy agreement in order to perpetrate the fraud.
This case was referred to the Agency by Brighton & Hove City
Council housing benefits department in July 2006. On the 31st
August 2006, Mr Doherty pleaded guilty to 15 offences of
dishonesty in relation to the fraudulent claiming of housing
benefit and was sentenced to a period of 15 months' imprisonment.
Following his conviction, ARA obtained a Restraint Order at the
High Court and executed search warrants that identified in excess
of £75,000 worth of jewellery held by the Mr Doherty.
At Lewes Crown Court on Monday 19th February 2007, HHJ Tanzer
made a Confiscation Order for £310,000 against Mr Doherty. This
must be repaid within eight months or he will face three
years' imprisonment in default. The benefit was certified in
the same amount.
A Compensation Order for the full amount defrauded was ordered to
be paid from the confiscated sums, and Mr Doherty must also pay
costs of £4,810 in addition to the other orders.
Jane Earl, Director of the Assets Recovery Agency said:
"This case shows how ARA can help local councils take action
against assets which have been derived from unlawful activity.
Benefit fraud is not a victimless crime- it takes money away from
those in real need. The Agency provides expertise to partners
throughout law enforcement to ensure that crime does not pay."
This is the first time Brighton & Hove City Council have
utilised the confiscation regime.
[ENDS]
Notes for Editors:
1. The Proceeds of Crime Act 2002 created the Assets Recovery
Agency and provided completely new powers to allow ARA to seek
civil recovery of the proceeds of unlawful activity by an action
in the High Court. The Agency can also issue tax assessments where
there are reasonable grounds to suspect that there is taxable
income, gain or profit from criminal conduct.
2. The Agency is playing its part in the multi-agency approach to
deliver the Government's Asset Recovery Strategy. Under the
cross government initiative 'Payback', the tracing of
and recovery of assets is seen as an important element in the
delivery of justice, and sends out a strong deterrent message. The
overall aims of the strategy are to make greater use of the
investigations of criminal assets in the fight against crime;
recover money that has been made from crime or which is intended
for use in crime; prevent criminals and their associates from
laundering the proceeds of criminal conduct, and detect and
penalise such laundering where it occurs; to use the proceeds
recovered for the benefit of the community.
3. On 11th January 2007, the Home Office laid a Written
Ministerial Statement before Parliament setting out Government
proposals to merge the Assets Recovery Agency (ARA) with the
Serious Organised Crime Agency (SOCA), and to extend to
prosecutors the power to launch civil recovery action under the
Proceeds of Crime Act 2002. The Written Ministerial Statement can
be viewed at http://www.assetsrecovery.gov.uk/AboutARA/.
Any proposed merger will require primary legislation. In the
meantime ARA will continue to operate as before and use its powers
to the full in proceeding with all cases under active litigation
as well as adopting new cases from referring agencies in the
criminal enforcement community.
Assets Recovery Agency, PO Box 39992
London EC4M 7XQ
E enquiries@ara.gsi.gov.uk http://www.assetsrecovery.gov.uk