Two people were jailed for their involvement in a scheme that defrauded a Lincolnshire-based metal recycling company out of £2.2 million, with additional members of the group receiving suspended sentences. The sentencing took place at Lincoln Crown Court on May 24.
Sentencing Details
- Patrick Gavin, 34, and Frankie East, 26, both of HMP Five Wells, were sentenced to two years and six months and two years and eight months, respectively, for converting criminal property.
- Thomas Smith, 25, of Compton Place, Kettering, was handed a 16-month sentence, suspended for 18 months, along with a rehabilitation requirement for his involvement in the scheme.
- Danielle Mehew, 32, formerly of Oxford Mews, Rothwell, received a 21-month suspended sentence, also suspended for 18 months, and was ordered to complete rehabilitation for two counts of converting criminal property.
- Craig Voss, 34, of Sutherland Road, Corby, was sentenced to two years, suspended for 18 months, and was required to complete 200 hours of unpaid work.
Scheme Details
Between 2014 and 2017, the group conspired with former metal recycling site manager Garry Killick to falsify records, inflate prices, and manipulate payments from bogus sales of scrap metal. The fraudulent activity was primarily conducted through cheques, bank transfers, and PDQ electronic transfers. Investigations revealed that 1,797 cheques were exchanged for cash, amounting to £1,341,759.08, while further amounts were diverted electronically by the conspirators.
Killick was previously convicted in February 2023 and sentenced to three years and nine months for his role in the scheme.
Two people who had been working with a former metal recycling manager to defraud a Lincolnshire-based metal recycling company out of millions of pounds have been jailed.
They were sentenced at Lincoln Crown Court earlier today (24 May).
Patrick Gavin, 34, of HMP Five Wells, was sentenced to two years and six months while Frankie East, 26, of HMP Five Wells, was sentenced to two years and eight months for converting criminal property.
Thomas Smith, 25, of Compton Place, Kettering in Northamptonshire was sentenced to 16 months suspended for 18 months for converting criminal property. He was also given a rehabilitation requirement.
Danielle Mehew, 32, previously of Oxford Mews, Rothwell, was sentenced to two counts of converting criminal property with a sentence of 21 months running concurrently, suspended for 18 months. She was given a rehabilitation requirement.
Craig Voss, 34, of Sutherland Road, Corby in Northamptonshire, was sentenced to two years suspended for 18 months. He was also ordered to undertake 200 hours of unpaid work.
Converting criminal property falls under Section 327 of the Proceeds of Crime Act (POCA) 2022 and essentially describes concealing or disguising the nature, source, location, or ownership of criminal property.
Kenneth Schlegel, 34, of Station Road, Kettering in Northamptonshire who was also charged with the Section 327 offence, failed to appear in court and will be sentenced at a later date.
A warrant is out for his arrest.
From 2014 and July 2017, the group had been working with former metal recycling site manager Garry Killick to divert funds and defraud the company out of a total of £2.2 million pounds.
This was done by creating false records and inflating prices on bogus sales of scrap metal, and setting up payments via cheques, bank transfer and PDQ (electronic transfer to bank cards) that the group later manipulated to make a financial gain to the tune of £1,348,289.08.
Killick was convicted and sentenced to three years and nine months in February 2023 for his part in the offending.
Investigations revealed that in a two-year period, 1797 cheques were exchanged for cash at a money centre in Corby, which amounted to £1,341,759.08.
Investigations also revealed that £850 and £3,877 was collected by Schlegel and Mehew respectively via electronic bank transfer.
Detective Constable James Norton, who led the investigation, said: “Last year, Garry Killick was convicted and sentenced for siphoning millions of pounds from his employer to the benefit of himself and these five people.
“The Proceeds of Crime Act provides the ability to pursue those who benefit from criminality, and today’s result shows that Lincolnshire Police, in conjunction with the Crown Prosecution Service (CPS), will use that legislation to take the benefit away from criminality, the fight to show that crime does not pay. We will now use the Act to further try and retrieve the lost money for the victim.”
Ongoing Investigation
Another suspect, Kenneth Schlegel, 34, of Station Road, Kettering, failed to appear in court and has a warrant out for his arrest. He will be sentenced at a later date.
Detective Constable James Norton, who led the investigation, emphasized that the Proceeds of Crime Act will be utilized to recover the stolen funds for the victim and ensure that “crime does not pay.”
Conclusion
This case highlights how Lincolnshire Police and the Crown Prosecution Service are using financial legislation to crack down on those who profit from criminal activity. Further efforts will be made to retrieve the defrauded funds.