Two sisters from
Colwyn Bay, whose systematic frauds funded lavish lifestyles
filled with luxury property, fast cars and private schooling, were
jailed today after their greed led them to attempt a £161m fake
VAT repayment scam.
The women’s dream was brought to a halt when HM Revenue &
Customs (HMRC) launched an investigation into the employment
agency the sisters claimed to be running. Enquiries led to their
arrest in January 2009, and they were charged in December 2009
with nine offences including VAT and tax credits frauds. Today
Andrea Vaughan Owen, 42, and her sister Roberta, 37, were each
sentenced to 3½ years in jail.
Andrea, a former post office worker, and Roberta, who was once a
civilian worker for North Wales Police, paid for private schooling
for Andrea’s two eldest children, bought two properties, Mercedes
sports cars, spa treatments and private health care.
The pair had no difficulty considering how they might spend their
illicit wealth, making enquiries about buying a £320,000 Rolls
Royce, various commercial properties worth in excess of £2m and
even approached Liverpool Football Club to discuss an advertising
deal. However, as their fraudulent attempts failed, maintaining
this veneer of wealth based mainly on credit was increasingly
difficult. As they became more desperate their attempts at fraud
became more outrageous.
Speaking after sentencing today Simon De Kayne, Assistant
Director, HMRC said:
“Andrea and Roberta Vaughan Owen lived the type of lifestyle that
most people can only dream about; a lifestyle funded by their web
of deceit and fraud. The scale and variety of their criminal
attempts was astonishing, but it wasn’t enough for them and their
greed led to the £161m VAT claim, and their downfall. Our next
step will be to relieve them of the profits of their crimes.
“Anyone tempted to cheat, swindle and defraud should be warned
that we are examining claims more closely than ever before. During
the first year of our error and fraud strategy, we have stopped
more than £1bn of fraudulent and incorrect tax credits payments.
We work closely with the Department for Work and Pensions, and
carefully examine and check claims.”
During a three week trial Caernarfon Crown Court had heard how
mum of three Andrea Vaughan Owen and her sister Roberta Vaughan
Owen set about their frauds. Between them they received £120,000
in tax credits over a five year period, starting in 2003 when they
made their first claim stating that they were employed.
Investigations later revealed that Roberta had been on incapacity
benefit since 2002, supposedly unable to work, despite telling
HMRC that she was self employed. Andrea also claimed to be self
employed working more than 30 hours per week.
Andrea also tried - and failed - to obtain two bridging loans
totalling £751,000 by falsely claiming her income was £18-22k per
month. Both sisters attempted insurance fraud by seeking out
mortgage and motor vehicle repayments by claiming loss of
earnings. Finally, they submitted a false VAT repayment claim for
£161m in December 2008, which was not paid.
Sentencing the pair today at Caernarfon Crown Court, Judge His
Honour Niclas Parry said “The Jury has seen you for what you are -
serial fraudsters, shameless liars, manipulative and calculating.
You lived a lavish, greedy lifestyle at the expense of people who
face real hardship.”
Confiscation proceedings will follow.
Notes to editors
1. Defendants’ details: Andrea Vaughan Owen, DOB 12/01/69 and
Roberta Vaughan Owen, DOB 11/06/74 both of 7 Cwrt Bedw, Colwyn
Bay, Conwy.
2. Andrea and Roberta Vaughan Owen had both denied all charges.
Their trial commenced on 7 November 2011 at Caernarfon Crown
Court.
3. At the time of their trial, Andrea and Roberta were full time students.
4. Summary of offences:
£161m VAT repayment attempt
Andrea Vaughan Owen and Roberta
Vaughan Owen attempted a fraudulent £161m VAT repayment claim.
Between 1 July 2008 and 12 January 2009 they set up VAT registered
limited companies and attempted to obtain and create invoices in
order to facilitate the false VAT repayment, which was submitted
for payment in December 2008.
Andrea Vaughan Owen and Roberta
Vaughan Owen were each sentenced to 3 ½ years in prison for this offence.
Tax credits fraud
Andrea Vaughan Owen received a total of
£95,340.41 in tax credits she was not entitled to, by claiming
that she was working and lying about childcare costs for her two
eldest children between April 2003 and July 2008. During this
period Andrea Vaughan Owen did not work.
Andrea Vaughan Owen
was sentenced to 2 years in prison for this offence, to run concurrently.
Roberta Vaughan Owen received a total of £24,874.57 in tax
credits she was not entitled to between April 2003 and July 2008,
by claiming she was working when she was in fact in receipt of
incapacity benefit.
Roberta Vaughan Owen was sentenced to 2
years in prison for this offence, to run concurrently.
Insurance claims
Andrea Vaughan Owen made false
representations between 26 February and 15 July 2007 to Pinnacle
Insurance Company Ltd, under a mortgage insurance policy for her
property at 7 Cwrt Bedw, Colwyn Bay by claiming for loss of
earnings, when she did not in fact work. This claim was ultimately
unsuccessful.
Andrea Vaughan Owen and Roberta Vaughan Owen both made false
representations to Pinnacle Insurance Company Ltd, under an
insurance policy covering payments for two Mercedes Benz sports
cars. Between 26 February and 15 July 2007 Andrea and Roberta both
claimed for loss of earnings despite the fact they had not worked
during the term of the policy. Their claims were
unsuccessful.
Andrea Vaughan Owen and Roberta Vaughan Owen
were both sentenced to 18 months in prison for this offence, to
run concurrently.
Attempted bridging loans
In March 2008 Andrea Vaughan
Owen made false representation about her income to Link Lending,
with a view to obtaining a bridging loan of £572,400. Andrea
claimed that her monthly income was in the region of £18-22k per
month despite the fact that she was not working. This attempt was
unsuccessful. She also made a similar, unsuccessful representation
to the same company during the same month in an attempt to obtain
a bridging loan of £179,280.
Andrea Vaughan Owen was
sentenced to 18 months in prison for this offence, to run
concurrently.
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NAT 96/11
Issued by HM Revenue & Customs Press Office Press
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