£280,000 CONFISCATION ORDER FOR CONVICTED FRAUDSTER

15 Mar 2006 10:00 PM

A convicted Peterborough tax fraudster was left counting the cost of his crimes when he was ordered to pay £280,000 following successful confiscation proceedings at Peterborough Crown Court.

Martin Charles Jake Gordon owned two motor cycle businesses over a two year period between May 2000 and October 2002. He used these businesses to manipulate sales and acquisitions to fraudulently evade VAT. Gordon used a stolen identity to open a bank account and in total evaded duty of over £720,000. On the 8th July 2005 at Cambridge Crown Court he was found guilty of fraudulent evasion of tax and money laundering.

Gordon was sentenced to five years for VAT fraud and six and a half years for money laundering. He is presently serving his sentence at HM Prison Netherton, Peterborough.

HM Revenue & Customs (HMRC) Head of Investigation John Phillips said:

"This is a very successful outcome achieved by the dedication and joint working of both HMRC money laundering and confiscation investigators. This case shows that HMRC is determined to apply Proceeds of Crime legislation wherever possible to send a clear message to criminals and fraudsters at all levels that we will seek financial penalties."

Notes for editors

1. Martin Charles Drake Gordon (39), formally of Horseshoe Way Peterborough, is married with children.

2. Gordon has 12 months to pay or serve a default sentence of three years and six months.

3. Gordon was found guilty on 8th July 2005 of being knowingly concerned in the fraudulent evasion of tax, contrary to Section 72(1) of the Value Added Tax Act 1994 and of Removing proceeds of criminal conduct, contrary to Section 93C(1) of the Criminal Justices Act 1988. The confiscation hearing was at Peterborough Crown Court on March 9th.

4. 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 The Act superseded the existing powers to seize drugs related cash at the borders and extended the provisions to allow cash suspected to be related to ANY crime to be seized both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.

5. 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 about RCPO, please contact their press office on 020 7865 5666.

Issued by HM Revenue & Customs Press Office
Website www.hmrc.gov.uk