Officials from an HMRC VAT repayments taskforce became suspicious during routine compliance checks on Lawrence Conway, when he repeatedly stalled officers’ questions and avoided attempts to check his financial affairs.

The subsequent investigation found Conway had submitted fraudulent VAT repayment claims of £135,325 on behalf of a business partnership called ‘Tallulah Racing’ for the cost of keeping a racehorse from 2003 to 2013. However, HMRC’s investigation revealed that race horse, Thunder Cat, one of four horses involved, had failed to race since its ninth place turnout in 2001 at Lingfield Park racecourse.

HMRC also discovered that Conway had worked as a chartered surveyor, but never declared his earnings for ten years, evading over £61,500 in income tax and national insurance contributions. He had also charged VAT on invoices, even though he was not VAT registered, to gain a further £16,000.

John Cooper, assistant director, fraud investigation service, HMRC, said: ‘Conway clearly thought he was invincible, and could not get caught. He was wrong and is now behind bars for stealing honest taxpayer’s money and depriving public finances of much needed funding. His actions have ruined his reputation and career.’

The judge sentencing Conway to 18 months said it was ‘an extensive and long-running fraud’ and that it ‘was a serious matter and that he must discourage others from committing fraud against the public purse'.

After an initial payment of £16,000, Conway has recently paid over £209,764 including interest of £12,858 to HMRC.

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