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20 Dec 2010 12:35 PM
Gang jailed for £6 million tax fraud

News Release issued by the COI News Distribution Service on 20 December 2010

Six members of an Eastern European gang who stole £6 million from the taxpayer and spent the proceeds on exotic holidays, luxury houses and cosmetic surgery have been jailed at Croydon Crown Court for a total of 33 years following a complex investigation by HM Revenue &amp; Customs (HMRC).

The ringleaders of the gang, married couple Youri Khomitch and Victoria Chambers, ran a string of companies offering accountancy services for Eastern European workers. They submitted over 3000 fraudulent self assessment tax returns over a four year period, for both fictitious people and individuals whose identities had been hijacked.

Khomitch, 36, and Chambers, 37, used the cash to buy a luxury home in a gated community in Kent where they fitted flat-screen TVs in every room and installed an en-suite sauna and outdoor hot tub. They also bought a string of properties worth almost £2m across London and Kent. They enjoyed expensive holidays to Japan, Dubai, New York and Thailand. Chambers spent thousands of pounds on expensive gold and diamond jewellery and a breast enlargement operation. The fraudster couple also sent their eldest children to a private school. When they were arrested, HMRC officers found over £130,000 in cash and £380,000 of payable orders from HMRC.

The fraudulent enterprise was started by Komitch and Vjacheslav Dostenko, a Belarussian, in 2004. They fell out in 2005 and Dostenko was joined by Roman Kuznetsov, a convicted Russian cigarette smuggler. They set up a bogus recruitment company in Southwark and lured unsuspecting eastern European construction workers to their offices on the false promise of lucrative work. Once there, the fraudsters took their identity documents which they then used without their knowledge to submit hundreds of false repayment returns

Some of the bogus firms were set up by Alexander Sokolovskiy, a Russian who specialised in false identities and was described in court as the “bank man”. He set up fraudulent companies which the rest of the gang used as a cover for the fraud, and used fake identities to open the bank accounts that were used to receive the illegal rebates.

The final fraudster was Oleksandra Hawkins who acted as company secretary for two of the companies used to commit the fraud.

Peter Hollier, Assistant Director, Criminal Investigation for HMRC said:

“This was an organised criminal attack on the public purse. This gang stole identities and exploited innocent citizens with no regard for the consequences – they were solely motivated by greed. Tax fraud is not a victimless crime – it takes money away from vital public services, and HMRC is determined to make the perpetrators of these crimes face the full force of the law.”

The gang members are currently subject of a restraint order, freezing assets of over £2 million. Confiscation proceedings are underway.

Notes to editors
1. All defendants were charged with Cheating the Public Revenue. Details of individual defendants are as follows:

Youri Khomitch (DOB 26/09/74) of 3, Hollandbury Park, Kings Hill, West Malling, Kent, sentenced to seven years. Victoria Lvovna Chambers(DOB 26/05/73) of 3, Hollandbury Park, Kings Hill, West Malling, Kent, sentenced to four years Oleksandra Hawkins (DOB 27/06/68) of 77, The Roundway, Tottenham, London N17 7HB, sentenced to two years Alexander Sokolovski (DOB 07/04/60) of 23, Boxwood Close, West Drayton, sentenced to five years Roman Kuznetsov (DOB 19/11/79), address unknown, sentenced to eight years Vjacheslav Dostenko (DOB 13/10/67) of Flat 37, Forset Court, 140 Edgware Road, London, sentenced to seven years

2. If anyone has any information to report to HM Revenue &amp; Customs (HMRC) about any individuals or businesses that may be evading their tax, please contact the Tax Evasion hotline by calling 0800 788 887 or via the website www.hmrc.gov.uk/tax-evasion.

3. To view the documents associated with this release, please use the link below:
See web site for table data.

Issued by HM Revenue &amp; 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

Sara Gaines
Phone: 020 7147 0394
sara.gaines@hmrc.gsi.gov.uk