Two sisters in a £161m fraud case have been sentenced to three and a half years in jail.
The pair bought properties, sports cars and spa treatments.
Judge Niclas Parry said: “It beggars belief that incapacity benefit and working tax credits were being paid out of public funds to the same people for so long.”
He also criticised the willingness of banks to grant “huge mortgages on the flimsiest unchecked evidence”.
He added: “It’s no wonder this country is financially on its knees.”
Andrea Vaughan Owen, 42, and her sister Roberta, 37, dreamed of a lavish lifestyle funded by a VAT repayment scam.
Their dream was brought to a halt when HM Revenue & Customs launched an investigation into the employment agency the sisters claimed to be running. Inquiries led to their arrest in January 2009 and they were charged in December 2009 with nine offences including VAT and tax credits frauds.
The pair had no difficulty considering how they might spend their illicit wealth, making inquiries about buying a £320,000 Rolls Royce and various commercial properties worth in excess of £2m. They 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, Simon De Kayne, assistant director at 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.”
During a three-week trial, Caernarfon Crown Court heard how mother of three Andrea Vaughan Owen and her sister Roberta 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.
Lee Karu QC, defending Andrea, said the claim was “nonsense, deluded, idiotic”.
He contended that the sisters were more like Laurel and Hardy, rather than Bonnie and Clyde crime figures.
But the judge told them: “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.
Andrea had denied eight offences and Roberta denied five, but they were found guilty of all charges.
News Source: http://www.introducertoday.co.uk/
The pair bought properties, sports cars and spa treatments.
Judge Niclas Parry said: “It beggars belief that incapacity benefit and working tax credits were being paid out of public funds to the same people for so long.”
He also criticised the willingness of banks to grant “huge mortgages on the flimsiest unchecked evidence”.
He added: “It’s no wonder this country is financially on its knees.”
Andrea Vaughan Owen, 42, and her sister Roberta, 37, dreamed of a lavish lifestyle funded by a VAT repayment scam.
Their dream was brought to a halt when HM Revenue & Customs launched an investigation into the employment agency the sisters claimed to be running. Inquiries led to their arrest in January 2009 and they were charged in December 2009 with nine offences including VAT and tax credits frauds.
The pair had no difficulty considering how they might spend their illicit wealth, making inquiries about buying a £320,000 Rolls Royce and various commercial properties worth in excess of £2m. They 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, Simon De Kayne, assistant director at 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.”
During a three-week trial, Caernarfon Crown Court heard how mother of three Andrea Vaughan Owen and her sister Roberta 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.
Lee Karu QC, defending Andrea, said the claim was “nonsense, deluded, idiotic”.
He contended that the sisters were more like Laurel and Hardy, rather than Bonnie and Clyde crime figures.
But the judge told them: “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.
Andrea had denied eight offences and Roberta denied five, but they were found guilty of all charges.
News Source: http://www.introducertoday.co.uk/
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