CRACKDOWN ON FRAUDSTERS IN NORTH WEST

9 Dec 2005 02:15 PM

Twenty fraudsters across the north west have been undone thanks to HM Revenue & Customs (HMRC). Following successful prosecutions in Chester, Manchester and Liverpool and a series of financial investigations in Rochdale, Bolton and Greater Manchester the fraudsters are so far facing jail sentences totalling over 26 years in addition to large fines and the associated confiscations of assets.

Peter Hollier, HMRC Head of Investigations in the North West said:

"Combined these cases involved the evasion of approximately £10m in revenue. It may seem like a busy few weeks in the courts for our investigation and prosecution teams but this is our normal day-to-day work, tackling organised tax fraud and criminal activity. These cases demonstrate our continued commitment to protecting society and honest businesses in the region. Each case demonstrates the variety of work we do and how seriously we view these frauds. I have to congratulate all the HMRC teams on these successes."

"Don't forget anyone can help stop these crimes by bringing information about suspicious money transactions, VAT, tax or fuel fraud to one of our officers in complete confidence, on our confidential helpline 0800 59 5000, 24 hours a day."

Man arrested on Wirral jailed for VAT fraud (1)

On 1 December, Stephen William Bosanko was sentenced to three and a half years for persistent VAT fraud between November 2000 and March 2005. He pleaded guilty to ten counts of 'being knowingly concerned in the fraudulent evasion of value added tax contrary to Section 72(1) of the Value Added Tax Act 1994'. Bosanko was arrested on the Wirral at an Oxton address on 6 August 2005 after an investigation by HMRC officers into his multiple VAT registrations and illegal activities. Bosanko had pocketed nearly £300,000 in evaded tax and now faces a confiscation hearing under the Proceeds of Crime Act. In his summing up, Judge Aubrey said to Bosanko "the scheme you embarked upon showed guile, cunning and sophistication, this was a thoroughly dishonest sham committed by you".

Chester chemist jailed (2)

A locum pharmacist was sentenced to 18 months imprisonment and received a confiscation order for £149,000 on 4 November as a result of failing to declare or pay his taxes. Robert Mark Nicholson (50) of Chester was self employed between April 1998 and April 2004, and received fees for his work totalling £386,000, but never declared or paid any tax or national insurance on his income. Due to his lack of co-operation with HM Revenue & Customs officers criminal proceedings were begun and he was arrested by Cheshire Police. He faces an extended jail term if he does not pay the confiscation on time.

Altrincham haulage boss jailed (3)

On 17 November, Stephen Kennedy (47) was jailed for 16 months at Manchester Crown Court and faces a confiscation order after pleading guilty in October to 20 counts involving false invoices and accounting. Kennedy, of Altrincham, was the director of two companies trading as Straight Freight (Manchester) Ltd and Straight Freight (Midlands) Ltd. The court was told how he had prepared and introduced false invoices valued at over £292,000 and filtered a further £50,000 through both companies cashbooks for his own private use. After an investigation by HMRC, Kennedy was arrested in January 2004 and his business and home addresses were searched. By creating false invoices His Honour Judge Lewis said: "you maintained an affluent and expensive lifestyle and in order to do this you cheated HM Revenue & Customs".

Scottish accountant found guilty in Liverpool (4)

On 4 November, Jason Main, a HND-qualified 'accountant' from Glasgow was found guilty and will be sentenced on 15 December, at Liverpool Crown Court, for his part in a major oils fraud totalling £1.4m revenue. Main (33) was found guilty of 'conspiracy to launder the proceeds of criminal conduct between January 2001 and August 2002' on behalf of two others involved in the fraud. Main is the last of eight defendants who have been prosecuted for their part in this conspiracy, after a three-year long investigation by HMRC officers into the gang from across the UK. They bought, transported and sold illegal fuel to haulage and coach companies and to fraudulent filling stations. Main's role in the fraud was to launder the cash from the crimes, handling cheques and invoices and operate bank accounts in an attempt to disguise the origins of the money, on behalf of the businessmen who financed the illegal business. He traded from premises in Glasgow. A confiscation hearing in relation to Main's assets will be held at a later date. The gang included men from Northern Ireland, Derbyshire, and Herefordshire. Peter Hollier HMRC Head of Investigation in the North West said: "this case is significant as it involved the successful prosecution of every layer of the conspiracy - from delivery drivers, retailers, end users, accountant and financers. Our investigations into who did business with this chain of criminality are not concluded'.

Bolton woman to be prosecuted for false accounting (5)

Gillian Walsh (51) of Harwood, Bolton appeared in Bolton Crown Court on 22 November 2005 charged with 'false accounting / cheating the public revenue' and 'theft', contrary to Section 1 of the Theft Act 1967. She pleaded guilty to 10 counts and not guilty to 19 counts of diverting money from her two employers' payrolls to her own bank account. The charges date back to 1995 through to 2002 and involve two separate businesses for which Walsh acted as bookkeeper. HMRC investigators and forensic accountants allege that instead of paying PAYE deductions, national insurance contributions and tax for other employees, she diverted the payments for her own use and understated true salaries to further cheat the Revenue out of tax totalling in access of £200,000. Walsh now faces a trial commencing in May 2006 on the outstanding charges.

Rochdale man admits laundering £7.3 million (6)

On 9 November, Mehrhan Hussain (35) from Rochdale pleaded guilty to laundering £7.3 million and, along with two co-accused from Liverpool, also admitted laundering money after approximately £240,000 in cash was discovered in a search of business premises run by Hussain in Rochdale. All three will be sentenced on 20 January 2006 at Manchester Crown Court. Records found at the premises indicated that Hussain had laundered the £7.3m over a six-month period.

Manchester money launderers say 'goodbye' to cash (7)

On 14 October, three convicted money launderers had confiscation orders enforced on the benefits of their crime. Mohammed Ashraf Chohan (46) currently serving four and half years had £171,690 confiscated; Hafiz Mohammed Saleem (38) who was jailed for one year in February 2005 is ordered to pay £20,000; and Anthony Hurst (24) who is currently completing a community order had £71,986 confiscated. The three were all tried for their part in an international money laundering conspiracy centred across Manchester districts and the confiscation hearing was linked to the financial benefits of their fraud. If Saleem does not pay his confiscation within six months additional time will be added to his sentence and he still has to pay the full confiscation amount.

Yorkshire tobacco smugglers stopped at Manchester airport (8)

Two tobacco smugglers detected by Revenue & Customs officers at Manchester Airport in July 2005 were fined and sentenced on 23 November at Manchester Crown Court. They had travelled from Thailand with a total of 115,000 cigarettes. Both men from Bradford, West Yorkshire pleaded guilty to evading approximately £24,000 in revenue on 2 November - Carl Green was sentenced to a 300-hour community punishment order to be served within the next 12 months and had to pay £350 costs; whilst Christopher Jack was fined £5,000, in addition to £350 costs and has already served three weeks in custody.

These cases were successfully prosecuted by the newly established Revenue & Customs Prosecutions Office (RCPO). RCPO is an independent prosecuting authority which reports to the Attorney General, and is responsible for the prosecution of all HMRC cases in England & Wales.

Notes for editors
1. See previous HM Customs and Excise news release number NW09/05 issued 24 February 2005 available via the Government News Network website archive at www.gnn.gov.uk The Proceeds of Crime Act received Royal Assent on 24 July 2002. The provisions relating to seizure, detention and forfeiture of cash came into effect on 30 December 2002. The Act superseded the existing powers to seize drugs related cash at the borders and extended the provisions to allow cash suspected to be related to ANY crime to be seized both at the border and inland. Furthermore, an amalgamation of other legislation in force at the time removed the distinction between drugs and non-drugs money laundering offences.

The Revenue & Customs Prosecutions Office (RCPO) was created by Royal Assent on 7 April 2005. An independent prosecuting authority, RCPO reports directly to the Attorney General, and is responsible for prosecuting some of the largest drug and fraud cases in the UK. For further information please contact their press office on 020 7865 5666.

Issued by HM Revenue & Customs Media Relations Office

Website www.hmrc.gov.uk
HMRC Confidential helpline Tel: 0800 59 5000