Caption: Bulgarian fraud gang stole ?54 million in biggest ever benefits scam that funded luxury lifestylePictures: CPS
A gang of fraudsters will face jail after stealing almost £54,000,000 million in benefits.
Five Bulgarian nationals were convicted for raking in more than £50,000,000 in fraudulent Universal Credit claims using fake identities or real people.
Galina Nikolova, 38, Stoyan Stoyanov, 27, Tsvetka Todorova, 52, Gyunesh Ali, 33, and Patritsia Paneva, 26, pleaded guilty to fraud and money laundering for their involvement in a multi-million-pound scam on the benefit system.
It is believed to be Britain’s biggest ever benefit fraud, the CPS said.
The organised crime group made thousands of false claims, including using fake identities, between October 2016 and 2021.
To support the fake claims, they submitted forged documents, including tenancy agreements, counterfeit payslips and forged letters from landlords, employers and GPs.
Stoyan Stoyanov(Provider: Crown Prosecution Service)
Galina Nikolova(Provider: Crown Prosecution Service)
Todorova (Provider: Crown Prosecution Service)
Gyunesh Ali(Provider: Crown Prosecution Service)
Patritsia Paneva(Provider: Crown Prosecution Service)
If the claims were rejected, the unscrupulous gang would just try again and again until they were granted.
Investigators found they had set up three ‘benefit factories’ in London to churn out repeated false claims.
The businesses claimed to assist people with obtaining a national insurance number and benefits to which they are entitled.
However, it was found that after applicants made their claims for benefits through these three sources, they then left them in the hands of the organised crime group.
The court heard how the money gained from these fraudulent claims was then laundered.
It was moved between a number of accounts through numerous transfers and withdrawn in cash until the criminals could use it legitimately.
The defendants were first arrested on May 5, 2021, followed by a number of property searches.
Hundreds of ‘claim packs’ containing forged and false documents were found and seized, alongside bundles of cash stuffed in shopping bags and suitcases, a luxury car and designer goods including watches, jackets, and glasses.
One of the five defendants, Ali, fled the UK to Bulgaria following his release under investigation.
But he was caught and extradited back to the UK on February 25, 2023 to face justice.
All defendants eventually pleaded guilty when faced with the large amount of incriminating evidence which included encrypted messages, CCTV footage, forged documents, seized digital devices and bank statements
Speaking after the case, Ben Reid, Specialist Prosecutor for the CPS, said: ‘This case is the largest benefit fraud prosecution ever brought to the courts in England and Wales.
‘For a number of years, these defendants conspired to commit industrial-scale fraud against the Universal Credit system, costing the taxpayer more than £50 million.
‘Submitting thousands of false claims, the organised criminals enriched themselves from government funds designed to protect and help the most vulnerable people in our society.
‘This was a complex and challenging case which required close and effective working between CPS prosecutors, the Department for Work and Pensions and our international partners in both Bulgaria and through the UK desk at Eurojust, to dismantle and successfully prosecute the organised crime group. The guilty pleas entered by all five defendants, reflects the strength of the evidence against them.
‘The CPS Proceeds of Crime Division and DWP will now pursue confiscation proceedings against the defendants, to remove from them any available criminal benefit from this enterprise.’
Mel Stride MP, Secretary of State for the Department for Work and Pensions, said: ‘I am immensely proud of DWP investigators’ work, in collaboration with the Crown Prosecution Service, to take down this organised crime group.
‘Today’s convictions underline our commitment to protecting taxpayers’ money and it is only right and fair that we bring to justice those stealing from the public purse. My message is simple – if you are committing benefit fraud, you are cheating the taxpayer, and we will catch you.’
Get in touch with our news team by emailing us at webnews@metro.co.uk.
For more stories like this, check our news page.