HM REVENUE AND
CUSTOMS News Release (NAT 31/08) issued by The Government News
Network on 1 July 2008
Barrister, John
Wilmot, has been jailed for five years for attempting to cheat the
country out of £17.5million through a fraudulent VAT claim and a
bogus £100 million aircraft engine deal.
Wilmot's claims that he was not knowingly involved in the
attempted VAT fraud were rejected during the trial at Southwark
Crown Court.
In passing sentence, Her Honour Judge Taylor, said: "It was
an audacious attempt to obtain a large sum of money by fabricating evidence."
Wilmot, a Nigerian national, was also recommended for deportation
upon completion of his sentence and was also disqualified as a
company director for eight years.
Robert Gray, Assistant Director, Criminal Investigation
Directorate, said:
"Mr Wilmot has been sentenced today to five years
imprisonment for his fraudulent attempt to steal £17.5 million
pounds from honest taxpayers.
"Wilmot is a barrister - he was in a position of knowledge
and trust. He chose to abuse his privileged position to mount an
extremely serious attack on the VAT system. This massive fraud
would have worked were it not for HM Revenue & Customs's
(HMRC) rigorous checking of VAT repayment claims together with the
diligence of local HMRC staff."
Wilmot claimed to be a barrister specialising in shipping,
aviation insurance and international tax laws. He was arrested
following an investigation triggered by his first VAT Return as a
repayment claim for over £17.5 million.
Discrepancies on his VAT return triggered checks and a call on
his chambers by an HMRC VAT Officer. Wilmot tried to explain that
the massive VAT repayment claim was due to the purchase of jet
engines from a UK company, Aircraft Unit Engineering Ltd, which he
had sold to an Iraqi businessman. He also claimed the engines were
shipped on the Heroi Strakhorskyi, from Southampton on 12 December
2006 for the port of Umm Quasr, Iraq.
Wilmot provided paperwork for sales and shipping but was unable
to show any bank accounts relating to payment for the engines.
Further enquiries showed the VAT number on the invoice from
Aircraft Unit Engineering Ltd was a redundant VAT number belonging
to the Argos Catalogue company. The Aircraft Unit Engineering
company does exist but its declared VAT returns show its sales are
not of the magnitude of the alleged sale to Wilmot.
A search of the manufacturer's website for the jet engines
revealed they are valued at around $9 million (approximately £4.8
million each) - considerably below the £25 million which Wilmot
claimed to have sold them.
The Heroi Stakhorskyi departed Southampton docks on 12 December
2006 but the ship manifest recorded its cargo as New crop beans
but no engines. The ship was bound for the Black Sea via
Gibraltar, Malta, Egypt and Turkey not the Iraqi port of Umm Quasr.
Wilmot claimed he arranged the deal through an Iraqi national, Mr
Al Majari of Basra and that he found a supplier by visiting a
trade fair in Excel in London, and that he had arranged to inspect
the engines in a London warehouse.
A search of Wilmot's office, where he had been living, in
Temple Chambers, Temple Avenue, London, uncovered a laptop
computer which was forensically examined and found to have been
used in the creation of the purchase and sales invoices, export
documents and contracts. Wilmot explained this by saying that he
had scanned the invoices when he received them. Forensic
examination showed the laptop has been used to create them.
The company in Croydon that allegedly sold Wilmot the engines
stated that they had never heard of him, nor do they sell Aircraft
Engines, nor exhibited at the Excel centre. Mr Al Majari has never
been traced. Wilmot had pleaded not guilty to VAT fraud. The case
was prosecuted on behalf of HMRC by The Revenue & Customs
Prosecution Office (RCPO) which was created by Royal Assent on 7
April 2005 and is an independent prosecuting authority reporting
directly to the Attorney General.
Notes for editors
1. John Wilmot gave an address of Temple Chambers, Temple Avenue,
London, EC4Y 0DA, as both his home address and his business address.
Issued by HM Revenue & Customs Press Office
Website http://www.hmrc.gov.uk