Recruitment Agency Fraud

Two sisters from Colwyn Bay, Andrea (42) and Roberta Vaughan-Owen (37), have each been sentenced to 3 ½ years in prison, following a fraudulent attempt to claim a VAT repayment of £161m!

The pair had systematically defrauded HMRC to fund lavish lifestyles of luxury property, fast cars and private schooling. Their scheming was brought to an end however when HMRC launched an enquiry into the employment agency that the sisters claimed to be running.

It was discovered that, between 1st July 2008 and 12th January 2009, they had set up VAT registered limited companies and attempted to obtain and create invoices in order to generate the false VAT refund claim, which was submitted in December 2008. In January 2009 they were both arrested and later charged in December of the same year with nine offences, including VAT and tax credits fraud.

Andrea, a former post office worker, and Roberta, who had previously worked for North Wales Police as a civilian worker, paid for private schooling for Andrea's eldest children, bought two properties, Mercedes sports cars, spa treatments and private health care. In addition, they made enquiries about purchasing a £320,000 Rolls Royce, various commercial properties with combined values in excess of £2M and even approached Liverpool F. C to discuss an advertising deal. The pair found it increasingly difficult to maintain their superficial wealth, which was mainly based on credit, which led them to outrageous fraud attempts.

During a three week trial at Caernarfon Crown Court, last month,  the court heard how the sisters carried out their frauds. Over a five year period, starting in January 2003, they received £120,000 in tax credits between them when they claimed to be employed. Investigations later revealed that Roberta had been on incapacity benefit since 2002, supposedly unable to work, despite informing HMRC that she was self-employed. Andrea also claimed to be self-employed, working more than 30 hours per week. 

Andrea also tried, without success, to obtain two bridging loans totalling £751,000 by falsely claiming that her monthly income was between £18 – 22K per month, despite the fact that she was not working.

Simon De Kayne, HMRC Assistant Director, said after the sentencing, “Anyone tempted to cheat, swindle and defraud should be warned that we are examining claims more closely than ever before. During the first year of our error and fraud strategy, we have stopped more than £1bn of fraudulent and incorrect tax credits payments. We work closely with the Department for Works and Pensions, and carefully examine and check claims."

 

1 Comment

  • Rob says:

    Contractors beware.

    An agency in the West of England is recruiting on behalf of BAE Systems. Should the applicant be successful the agency has been falsely claiming a start date will be issued within two to three weeks. BAE’s recruitment process ( which is outsourced to another agency) takes on average 3 months – NOT weeks.

    The recruiter then strings the applicant along with “this is the final stage” type remarks. By the time the applicant finds the truth several months have passed with loss of earnings.

    Beware of signing a contract with BAE without details of their process. Then ensure it matches the recruitment agency’s claims.

Leave a Reply

Your email address will not be published.

★ ★ ★ ★ ★

Very pleasant. Excellent price for what I needed. I will be a returning customer.

Rhino Review

Mr Paul D

Great staff. Customer focused and a team who recognise and understand their customers 100%.

Rhino Review

Vijay S

Fantastic accountants who helped me submit my last 2 years personal tax returns! I really rate this company!!!

QAccounting Review

Natalie

Fantastic service.

Rhino Review

Marco G

Been with QAccounting for several months now, very good service, very personal and the best prices I have seen.

QAccounting Review

Muhammed A

I switched over to QAccounting a few months ago and haven't looked back. I get to speak to my own client manager and accountant, the prices were the best I had seen, and I paid exactly what it said online (no extra costs). Very happy with QA.

QAccounting Review

Jeremy H