In a seemingly ordinary shop in north London, Galina Nikolova, a striking bottle-blonde Bulgarian, was at the center of the UK’s largest benefit fraud scheme. Known for her bold eyebrows, Nikolova was not just a shop worker; she was one of the masterminds behind a massive operation that defrauded the government of millions.
When police raided her home, they uncovered an astonishing £750,000 in cash hidden under beds and behind appliances. Carolann Mongan, the benefits official leading the investigation, remarked, “To seize that much money in one day is unheard of. I’ve worked on significant cases, but nothing of this scale.”
Nikolova’s arrest capped a two-year investigation by the Department for Work and Pensions (DWP) into a complex organized crime group. The gang admitted to fraudulent claims totaling £53.9 million. At Wood Green Crown Court, two members received what are believed to be the longest sentences ever issued for benefit fraud.
At 39, Nikolova was found liable for £25 million in losses and sentenced to eight years in prison, while four other gang members received sentences ranging from three to seven years.
The fraud involved transporting thousands of Bulgarians to London, often at the gang’s expense, to file claims for Universal Credit. Using fraudulent tenancy agreements and fake employment records, the gang manipulated the system. Although initial payments may have reached the claimants, subsequent monthly payments were funneled back to the gang, often withdrawn in cash from numerous bank accounts.
Prosecutors noted that Nikolova began her fraudulent activities in October 2016, just before Brexit altered eligibility rules for EU citizens. She worked alongside fellow Bulgarian Gyunesh Ali, who had previously presented himself as an accounting expert but had a history as a carpenter.
This case underscores the complexity and scale of organized benefit fraud, highlighting significant vulnerabilities within the system.