Five individuals have been sentenced for their roles in a £500,000 fraud and money laundering scheme. Neale Rothera, 49, identified by the Insolvency Service as the “ringleader,” received a prison sentence of six years and four months.
Rothera was sentenced at Leicester Crown Court on March 19, alongside four accomplices: Simon Wakefield, Frederick Penn, Shona Walters, and Laura Perkins. Rothera established several businesses that falsely claimed to sell furniture and carpets, using them as fronts for the fraudulent activities.
According to the Insolvency Service, the companies Rothera helped set up were primarily “sham” operations in the Leicestershire area. Mark Stephens, chief investigator at the Insolvency Service, described the fraud as “very sophisticated, persistent, and carefully planned.”
Stephens noted, “Neale Rothera was the common theme throughout, devising the schemes and orchestrating their implementation.” He highlighted that Rothera was assisted by others who either fronted the companies or helped launder the illicit funds while he operated as a shadow director.
Importantly, no individuals involved were coerced into participating in the criminal activities, and the sentences serve as a warning against such fraudulent actions.
The offences occurred in 2012 and 2013, primarily revolving around “invoice factoring agreements” with financial institutions and four companies: Thistle Interiors Ltd, Sorrel Trading Ltd, Wakefield Trading Ltd, and Penn Interiors Ltd. Invoice factoring is a legitimate finance method allowing businesses to access funds tied up in unpaid invoices, rather than waiting for customer payments.
Rothera enlisted Walters, Wakefield, and Penn to act as directors, as he was unable to secure credit agreements with banks. All three played active roles in obtaining the factoring agreements, according to the Insolvency Service.