HM REVENUE AND
CUSTOMS News Release (CEN 38/08) issued by COI News Distribution
Service. 26 September 2008
Three men and a
woman have been sentenced to a total of 19 years in prison today,
at Worcester Crown Court, for their part in a major VAT fraud to
steal a staggering £50 million from the nation.
An intense investigation by HM Revenue & Customs (HMRC) began
in 2002, into what has become known as 'missing trader'
fraud. This involved the dishonest manipulation of the VAT system
through the import and export of mobile phones. The fraud
investigation, codenamed Operation Shoot, featured three people
from Staffordshire and one from London.
Chris Harrison, Deputy Director of Operations, Criminal
Investigation, for HMRC said:
"This was not some kind of victimless crime, but organised
fraud on a massive scale perpetrated by criminals all bent on
making fast and easy profits at the expense of the British
taxpayer. This was theft of revenue needed to fund our
country's public services such as hospitals and schools.
'Missing trader' fraud is not merely a paper fraud but
often features links to other forms of criminal activity including
murder, shootings, kidnap, extortion and intimidation which bring
devastation to our communities. This case has links to two
separate investigations which have resulted in major prison
sentences being awarded by the courts and is a further example of
our determination and success in bringing to justice the criminals
behind this type of fraud. The sentences should send out a clear
message to others who may contemplate such criminal activity."
Customs Officers carried out a number of raids in June 2002 at
business premises in Staffordshire and London of companies
controlled by the defendants. Business records for Worldsoft,
Lawley and Calcon purported to have carried out 588 transactions
with either UK based 'missing traders' or hijacked VAT
registered companies. Amounts totalling over £50 million were
charged as VAT on these transactions but not declared or accounted
to HMRC.
Computer records also showed links to defendants in two separate
successful 'missing trader' fraud investigations by HMRC
which have been subject to reporting restrictions until the
conclusion of this case. The first, codenamed Operation Shepherd,
resulted in seven men being sent to prison for a total of 39 years
for stealing £68 million. Some of these jail terms are running
concurrently - Total sentences handed down in this case came to 53
years. The second, codenamed Operation Emersed, resulted in 12
people being sent to prison for a total of 75 years for stealing
£20 million from the public purse. Some of these jail terms are
running concurrently - Total sentences handed down in this case
came to nearly 120 years.
The gang would divide the dishonest profits of the fraud and
launder them through various bank accounts based in Europe and
Hong Kong.
Confiscation Orders have been secured to reclaim this money for
the public purse under the Criminal Justice Act 1988.
Matthew Wagstaff, Head of the Commercial Division of Revenue
& Customs Prosecution Office (RCPO) said:
"Missing Trader prosecutions are the most challenging area
of RCPO's casework. This case was particularly challenging
to prosecute because of the large number of trading companies and
defendants - their complex web of associations and activities were
difficult to unravel and present to the jury. RCPO are pleased to
have secured such a high number of convictions in the face of
these difficulties and will build on these successes in future prosecutions".
Ends.
Notes to Editors
1. Photographs of the defendants are available on request.
2. This is one of three separate, but linked, prosecutions which
has resulted in strict reporting restrictions being applied by the
courts. Reporting restrictions have been lifted with the
conclusion of this third prosecution and press releases are
available for Operation Shepherd and Operation Emersed which can
now be reported.
3. Details of defendants include:
* Gerard Michael Forrest (DOB 18.08.1968) of Prince Regent Mews,
London, was sentenced to 3 years in prison. He was disqualified
from being a company director for 5 years.
Forrest operated a company called Lawley Technologies Ltd.
* Stephen Hancock (DOB 05.03.1958) currently of HM Prison Service
and formerly of Grove Farm, Kingsley Road, Cellarhead,
Stoke-on-Trent, Staffordshire, Stoke-On-Trent, Staffordshire, was
sentenced to 5.5 years in prison. He was disqualified from being a
company director for 8 years. Hancock is currently serving a five
year prison sentence and five years to run concurrently for his
role in a separate £20 million VAT fraud.
Hancock operated a
company, along with Moran, called Worldsoft (UK) Ltd
* Barbara Moran (DOB 03.08.1956) of Laurel Cottage, Scot Hay
Road, Alsangers Bank, Stoke-on-Trent, Staffordshire, was sentenced
to 3.5 years in prison. She was disqualified from being a company
director for 6 years.
Moran operated a company, along with Hancock, called Worldsoft
(UK) Ltd
* Shane Matthews (DOB 05.08.69) of Ironside Court, Burslem,
Stoke-on-Trent and formerly of 6 Partridge Close, Stoke-on-Trent,
Staffordshire, was sentenced to 7 years in prison. He was
disqualified from being a company director for 6 years.
Matthews operated a company called Calcon Industrial Supplies Ltd.
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 0207 147 7746.
Issued by HM Revenue & Customs Media Relations Team
Website http://www.hmrc.gov.uk