John Faraday, from Buckinghamshire, was part of a nationwide gang who were investigated by HMRC after they attempted to submit fraudulent VAT repayment claims.

The gang hijacked the identities of five individuals and set up eight fake companies. They also produced bogus invoices and contracts between each of the companies, some of which claimed to be buying and selling television broadcast rights for martial arts events, in order to generate fraudulent VAT repayments.

Between October 2010 and September 2012 the seven men, including Faraday, piggy-backed genuine cage fighting events, produced phoney promotional material and used the names of well-known fighters to enhance the authenticity of their companies. Over £350,000 was paid out in VAT refunds before the scam was uncovered.

Five of the gang were jailed for almost 19 years in November 2015, while another man, Aled Wilson, was sentenced to 18 months in prison, suspended for 12 months, at the same time as Faraday.

Anthony Swarbrick, assistant director, fraud investigation service, HMRC, said: ‘This was a fraud driven purely by greed with the single aim of extorting money which should have been spent on vital public services. This whole set up was a ruse with the sole purpose of stealing from the taxpayer.

‘Now all seven members of this gang are paying the price for their fraud. We will look to strip them of their criminal gains, and the message is clear.’

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