Seven individuals have been sentenced for their roles in a large-scale £22 million fraud targeting the taxpayer. The defendants were involved in orchestrating fraudulent payroll companies that pocketed VAT and Construction Industry Scheme (CIS) contributions, rather than paying them to HMRC.
The individuals sentenced include Daniel Newton (38), Philip Bailey (36), Sean Dean (41), Lee Hudson (56), Sarah Gillard (41), Bradley Mortimer (39), and Kevin Ratcliffe (43). The sentences range from two years to nine years and four months, for crimes including cheating the public revenue, money laundering, acquiring criminal property, and involvement in an organized criminal gang.
This extensive case was built by the Crown Prosecution Service in close cooperation with Kent Police and HMRC. The scam was uncovered when unpaid VAT and CIS contributions were traced to the bank accounts of the defendants.
The key players in the operation were Bailey, Newton, and Dean, who established and managed the fraudulent payroll companies. Ratcliffe, a director of a construction firm, received illegal ‘kickbacks’ for directing business to these companies. Hudson, an office worker, helped facilitate the day-to-day operations of the scam, while Gillard and Mortimer were involved in laundering the criminal proceeds.
Julius Capon, from the Crown Prosecution Service, commented: “These criminals stole £22 million from taxpayers by setting up fake payroll companies. Instead of forwarding VAT and CIS contributions to HMRC, the defendants kept the money for themselves. Ratcliffe’s company played a pivotal role, receiving kickbacks for aiding the fraud. Gillard and Mortimer assisted in laundering the illicit funds.”
Ian Hackett, Operational Lead in HMRC’s Fraud Investigation Service, stated: “Our collaboration with Kent Police dismantled this sophisticated fraud scheme. The investigation has safeguarded millions of pounds that should be funding vital public services.”
