The ringleader of a 19-strong gang has been jailed for four years and eight months after he led a £2.4m VAT repayment fraud
David Handley, from Leicester, recruited more than a dozen accomplices to make almost 300 fraudulent claims for VAT repayments over a seven-year period, a HMRC investigation revealed.
Investigators found Handle supervised the set-up of 46 fake businesses for the sole purpose of making fraudulent tax repayments.
He repeatedly posed as a legitimate trader and used the details of his accomplices to register businesses, fronting supposed courier companies, air conditioning suppliers and fast food firms. Handley submitted false tax repayment claims on behalf of other gang members and gave them a cut.
The gang, who met through school or social events, would request a large initial repayment followed by reduced subsequent claims. When contacted by HMRC the trader would cease all claims and become uncontactable.
Most of the proceeds were split between the gang but Handley, believed to be the mastermind behind the scam, was the only member not to receive payments directly into his account. However, he did receive money indirectly via other members.
He also tried to block the investigation by sending fake invoices to HMRC in a bid to justify the repayments, which he said were due to high set-up costs.
A total of £2,415,837 was paid out to the individuals, and further payments of £262,622 were withheld by HMRC.
Daren Cooley, assistant director, fraud investigation service, HMRC, said: ‘This gang, controlled by Handley, carried out a relentless and sustained attack on the tax system. They illegally claimed VAT they weren’t entitled to and diverted money from our public services into their own pockets. Handley in particular lied and lied – initially to steal and then to try to block our investigation.’
At Leicester crown court Handley was sentenced to four years and eight months in prison, and 18 of the remaining gang members were also convicted for their roles in the fraud. Two others were given prison terms of three and-a-half years, two more had sentences of two years, and one a term of 21 months. The remainder were given sentences of between two years and eight months, all of which were suspended for two years.
Report by Pat Sweet
