A London pensioner who hid in a wardrobe to avoid discovery during an operation by HMRC has been ordered to repay criminal profits of almost £275,000, within three months, or remain in prison for a further two and a half years
Company director Michael Kelly was jailed for four and a half years in 2014 for making false VAT repayment claims of more than £500,000 over a six-year period, by claiming that his company exported white goods and motor vehicles to Africa.
HMRC investigations revealed that his company, International Trade Centre (UK) Ltd of Dulwich, made only six small-scale exports in four years.
Under the terms of a confiscation order granted this week at the Old Bailey Kelly was ordered to pay £274,725 within three months or remain in prison for a further two and a half years.
Kevin Newe, assistant director, HMRC’s fraud investigation service, said: ‘Kelly was shameless in his attempts to obtain huge sums of money by fraud with no regard for the fact that he was stealing it from public services. But this action shows that our work doesn’t stop when someone is convicted and that we will look to reclaim the money stolen from the public purse.’
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