Convicted
fraudster Craig Johnson, who has failed to fully repay a
£26million confiscation order imposed after he was convicted of a
£20million ‘missing trader’ VAT fraud has been sentenced to a
further 8 years in jail.
Johnson was set to be released early from a 12.5 year jail term
next month, but will remain behind bars, as to-date he has only
repaid around £4million after being forced to sell a variety of
assets including his stately home Meaford Hall in Staffordshire,
three further UK properties, performance vehicles – including a
Bentley and a Ferrari, Rolex watches and diamond jewellery.
Robert Alder, Assistant Director for HM Revenue & Customs
(HMRC) said:
“This will send the strongest message yet to
criminals that even in prison they cannot hide from our actions to
reclaim their criminal profits. We are determined that this money
will be restored to the nation’s finances in what is one of the
largest confiscation order ever secured in the UK.“
Background Johnson was the principal player,
heading up a serious organised crime gang that stole millions from
the taxpayer in a complex ‘missing trader’ VAT fraud. Enquiries
included three parallel HMRC investigations which resulted in 21
serious career criminals receiving jail sentences totalling 133
years for their part in a £138million fraud.
The fraud involved the import of mobile phones from various EU
countries VAT free, or a paperwork trail which suggested that
imports had taken place. It was likely, in many instances, that
the goods described in the documents did not even exist. The
paperwork showed the goods would then be sold more cheaply, but
with VAT added, through a chain of companies (known as ‘buffers’)
each involved in the plot and sham invoices would be issued. Once
the goods had been sold on a number of times they would be
exported back to EU countries. This was facilitated by a corrupt
freight forwarding company who provided apparent independent
confirmation of the legitimacy of the trade and false paperwork on
the transport of the alleged goods. The exporter would then claim
a VAT credit from HMRC for the VAT paid on the purchase of the
goods.
Notes for editors
1. Details of the confiscation default sentence hearing
yesterday along with the previous confiscation order and original
sentencing include:
Confiscation Default Sentence – Monday,
21 March 2011 at Birmingham Magistrates Court.
* Craig Matthew
Johnson (DOB 23.05.73), of HM Prison Service, formerly of Meaford
Hall, Meaford, Stone, Staffordshire, was sentenced to an
additional 8 years in prison for failing to fully repay a
confiscation order of £26million.
Confiscation Order - 20 November 2008 at Wolverhampton Crown
Court
* Johnson received a confiscation order requiring him to
repay £26million or face a further ten years in prison.
Original Sentencing - 12 June 2006 at Wolverhampton Crown Court
* Johnson was found guilty of Cheating the Revenue and
Conspiring to Furnish False Accounting Information contrary to the
Theft Act 1968 and was sentenced to a total of 12.5 years in
prison.
He was also disqualified from being a company director
for 14 years.
2. To view the photographs associated with this release,
please use the link below:
3. Follow HMRC on Twitter @HMRCgovuk
NAT 19/11
Issued by HM Revenue & Customs Press Office
Press enquiries only please contact:
Contacts:
HMRC Out of Hours
Phone: 07860 359544
NDS.HMRC@coi.gsi.gov.uk
Jonathan Hall
Phone: 020 7147 0052
jonathan.hall@hmrc.gsi.gov.uk
Bob Gaiger
Phone: 01404 811532
bob.gaiger@hmrc.gsi.gov.uk