Posts Tagged ‘Fraud’
07.09.10 HMRC Guidance – Pakistan floods disaster – guidance on transmitting money
Posted by: BTC in General News & Cases, HMRC News and Guidance on September 7th, 2010
The Government recognises the crucial importance of individual giving and charitable donations at times of humanitarian crisis such as the Pakistan floods and therefore understands and values people’s desire to give money. This underlines the importance of knowing that money sent with best intentions is not inadvertently finding its way into the wrong hands.
The normal risk based approach and customer due diligence measures must be applied by money transmitters when an individual is sending their own money to either family members or to a relief organisation in Pakistan.
If money collected by a charity or religious organisation is being sent we recommend that you do the following.
- Check the identity of the person arranging to send the money.
- Obtain the name and address of the charity or religious body.
- Check on the Charity Commission website (Opens new window) to confirm the organisation is a registered charity and obtain confirmation that the person is a genuine representative of the charity or religious organisation. Many of the charitable and religious organisations with links to Pakistan are registered with the Charity Commission.
If the organisation is not on the register you may still undertake the transaction but you should make further enquiries to satisfy yourself that the money being transmitted is not terrorist financing or the proceeds of crime.
The further enquiries could include questions about how the money was collected and enquiring about who it is being sent to. If after making further enquiries you are not satisfied that this is genuine you should consider making a suspicious activity report to the Serious Organised Crime Agency.
07.09.10 Charity Commission publishes advice for donations for the floods in Pakistan
Posted by: BTC in General Information & FAQ's on September 7th, 2010
The Charity Commission, the independent charity regulator for England and Wales, has published advice for people who want to support those affected by the floods in Pakistan, whether by fundraising or by making a personal donation.
The public’s support is crucial to enable charities to deliver desperately needed aid to Pakistan but it is vital that donations go to a genuine charity so that they reach those in need. Sadly, there are criminals who try to take advantage of the public’s generosity in response such disasters, and the Commission has been made aware in previous emergency appeals, such as the Haiti appeal, of online scams designed to steal charitable donations. These can take the form of fictitious appeal websites, email appeals that falsely use the name of genuine charities, or appeals from fictitious charities.
The Commission is urging the public to continue giving but to be vigilant, and has the following advice for those who wish to make a donation:
- Be careful when responding to emails or clicking links within them to ensure that they are genuine. If you have any concerns about the legitimacy of a request for donations that appears to come from a charity, don’t hesitate to contact that charity directly.
- If you are in any doubt about a charity collector, ask for their identification and the charity’s name and registration number. If you are not happy about giving then and there, you can check to see if the charity is on the public register of charities on the Commission’s website – www.charitycommission.gov.uk.
- If you are concerned that you may have been targeted by a fundraising scam, you should report this to the police. You should also contact the Charity Commission on 0845 300 0218 or via the website – www.charitycommission.gov.uk.
- If you want to donate online to a particular charity, visit the charity’s website.
Think about how you are going to give. If you are a UK taxpayer and donate directly to a charity – whether online, over the phone, by post or by handing in a cheque at the charity’s office or shop – it can claim Gift Aid to maximise your donation.
An appeal for the Pakistan floods is being run by the Disasters Emergency Committee (DEC). The money raised will support the efforts of the DEC’s members, which are 13 of the major UK aid agencies and all UK registered charities. Information is on the DEC website – www.dec.org.uk. Numerous other registered charities are involved in the relief efforts and are currently fundraising.
There are laws around collecting money for charity in public which are there to protect donors and make sure that the money raised goes to a genuine charitable cause. If you want to fundraise for those who have been affected by the Pakistan floods, you should:
Have the necessary permission from your local authority or the Metropolitan Police if you live in a London borough.
Only collect using a sealed tin or container.
- Always make sure you state the name and registration number of the charity you are collecting for.
- Always make sure there is more than one person to count the collection proceeds and sign off the total amount
Bank any cash as soon as possible, preferably straight into the charity account. Get a receipt from the Bank/Building Society. - Report back to your community so they are reassured that the money has reached the good cause. You may wish to put notices in shops/post offices, or let your local paper know how much you raised and thank people for their support.
02.07.10 Chartered accountant faces eight years behind bars
Posted by: BTC in General News & Cases on July 2nd, 2010
A London Chartered accountant faces eight years behind bars after being convicted of manipulating both his clients’ and his own tax returns, pocketing £11m in income tax and VAT payments.
Christos Charalambous (58) of Palmers Green, London, completed over 6,000 self assessment tax returns for clients which included fictitious expenses claims in order to increase the tax repayments due. He also understated the income he received from client fees on his personal returns and failed to register, declare and pay VAT due on his accountancy firm Charltons. Many of Charalambous’ clients were from other EU countries and had little understanding of the UK tax system.
The court heard how Charalambous would submit tax returns for his clients to the Inland Revenue (IR) (up to April 2005) and HMRC (from April 2005) without showing his clients what information he was including. He would then receive the repayments from IR/HMRC, deduct a minimum of 15% fee and repay the remainder to his clients, who would not question the amount refunded as they trusted him to complete the returns correctly. The total amount of repayment claimed by Charalambous on his clients’ behalf was £11,222,472.
Between 1997/98 and 2004/05, he understated client fee income on his own self assessment tax returns by £807,406. He also failed to declare and pay £180,082 VAT due to HMRC.
He was found guilty on six counts of cheating the public purse at Blackfriars Crown Court following a trial that lasted seven weeks.
On passing sentence, His Honour Judge Richardson said: “The offences are more serious as you were a chartered accountant. HMRC ought to be able to trust you as should your clients. You exposed them to the dishonesty that you practice. With tax enquiries, you responded with evasion and lies.”
“Charalambous is a thoroughly dishonest accountant who was motivated by greed. He betrayed the trust of innocent and vulnerable people to feed that greed. This deprived the nation’s public services of millions of pounds. Our aim is to pursue and prosecute those involved in this type of criminal activity and reclaim the proceeds of their crime,“ said Steve Armitt, assistant director of criminal investigation for HMRC.
A Confiscation Order is being pursued.
22.01.10 Fraud losses cost the UK £30bn a year
Posted by: BTC in General Information & FAQ's, General News & Cases on January 22nd, 2010
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Fraud – including scams, online theft, insurance cheats and tax fraud – costs the UK £30bn a year, according to an official estimate.
The National Fraud Authority (NFA) has calculated the figure for the first time and said it equated to £621 per adult in the UK. Some 58% of fraud was in the public sector, at a cost of £17bn, it added.
It said the losses were paid for through taxes and rising prices of products and services. The highest sector was losses from tax fraud – estimated at £15.2bn – although this was only 3% of tax liabilities, the NFA said.
According to the NFA, which is part of the UK Attorney General’s Office, some 31% of losses came in the private sector, with the financial services sector suffering the biggest hit.
It lost an estimated £3.8bn, including £1bn in mortgage fraud. This has prompted the City watchdog, the Financial Services Authority, to take a tougher stance against the crime, with a number of brokers having been fined and banned from the industry.
Another £2bn was lost to insurance fraud, and the remainder came from fraudsters targeting online banking, cheques, and plastic cards.
The consumer goods industry lost an estimated £1.3bn a year. Manufacturing suffered losses of £1bn a year, and technology, media and telecommunications lost £948m.
Consumers have also been tricked out of an estimated £3.5bn a year in share, lottery and loan scams. Some 12% of all fraud was suffered by individual consumers.
“Although the figure appears on the face of it far greater than the previous estimate, we know this is because we have included many additional figures that other studies have not,” said NFA chief executive Bernard Herdan.
“With this vital information we can develop clearer priorities to prevent, detect and deter fraudsters. We will use the data to help identify those areas of fraud that cause the most harm to the UK economy”.
Visit the BTC website for compliance help and support for firms in the regulated sector
16.09.09 Four arrested connection with a £9m mortgage fraud
Posted by: BTC in General News & Cases on September 16th, 2009
Four men have been arrested by the City of London Police force in connection with a £9m mortgage fraud against a major insurance company.
40 police officers have been involved in the operation in the South-East of England which has led to a number of co-ordinated searches on four houses, the business unit of a gaming company and a solicitor’s office. Police officers have seized documents from the sites searched. As a result of the raids police have arrested four men on charges of conspiracy to defraud.
Steve Head, detective chief superintendent at the City of London Police, says the move represents a significant step forward in what has been a complex investigation.
He says: “The size of the police operation was evidence of the scale of this suspected fraud. It is not just the lenders that are being hit by the fraudsters. Individuals are losing millions and millions of pounds through a range of mortgage frauds, with much of this money being paid into the coffers of criminal networks.”
He adds: “We have a number of significant investigations ongoing and as lenders and borrowers continue to scrutinise their finances I anticipate many more cases being referred to us in the near future. I would ask anyone who has fallen victim to mortgage fraud to contact the City of London Police. The more we know the more difficult we can make it for those committing this highly damaging crime.”
The Solicitors Regulation Authority has backed the City of London Police’s crackdown on mortgage fraud.
A spokesperson says: “The SRA works closely with police and other law enforcement organisations to tackle mortgage fraud. Since the start of 2009 the SRA has stepped up its work in relation to mortgage fraud, both through advice and warnings to the profession, and by increasing its detection and investigation resources to prevent, deter and tackle fraud.”
Visit the BTC website for compliance help and support for firms in the regulated sector
14.09.09 HM Revenue and Customs officers arrested 21 people in raids in a multi million pound construction industry fraud.
Posted by: BTC in General News & Cases, HMRC News and Guidance on September 14th, 2009
The twenty one arrests, consisting of eighteen men and three women, were made covering areas as diverse as the West Midlands, Staffordshire, London and Greater Manchester. The suspects were arrested on suspicion of conspiracy to ‘cheat the public revenue’ and ‘money laundering’ offences amounting to over £6 m. They were questioned by HMRC criminal investigators at various UK police stations.
The plot centers on a complicated conspiracy through a version of ‘missing trader’ fraud which sees the creation of a contrived chain of companies, which claim to subcontract labour for the construction industry, with the sole intention of disappearing before paying the taxes due are payable under the ‘Construction Industry Scheme’ (CIS) to HMRC. These organised criminal gangs, in a bid to steal millions of pounds, pocket the money and hijack legitimate companies along the way.
This conspiracy exploits individuals working in the construction industry and it is believed thousands of construction site workers may have been robbed of the tax and national insurance contributions they have had deducted under the CIS scheme over the last six years.
Adrian Farley, Assistant Director of Criminal Investigation for HMRC, said: “Today’s arrests are the result of strenuous efforts by our teams of dedicated officers to disrupt the sophisticated scams of organised crime gangs behind money laundering activities. This conspiracy by a number of contractors is believed to have resulted in the theft of over £6 million from the public purse, depriving vital public services of much needed investment. We are committed to bringing them to justice and to deprive them of the proceeds of their crime.”
Visit the BTC website for compliance help and support for firms in the regulated sector
10.09.09 Serious Fraud Office (SFO) launches investigation into JJB and Sports Direct
Posted by: BTC in General News & Cases on September 10th, 2009
Following an OFT investigation into the sports retail market, it has been announced that the Serious Fraud Office (SFO) has now begun its own investigations into JJB Sports and Sports Direct.
JJB Sports revealed that it had stated its concerns about possible cartel activity in its market to the OFT which in turn has been granted immunity from any financial penalty in the event that competition rules have been broken.
The investigation follows an approach made by JJB to the OFT on January 30, following the suspension of its then chief executive Chris Ronnie. JJB asked at that time;
“for immunity pursuant to the OFT’s leniency programme in relation to a suspected agreement or concerted practice to dampen competition in the sports retail market in the period from 8 June 2007 to 25 March 2009, being the period in which the former chief executive, Mr Christopher Ronnie, was employed by the company.”
JJB did not name any other individuals or companies in its statement today. However, there was frequent speculation during Ronnie’s tenure about the nature of his relationship with Sports Direct and its founder Mike Ashley for whom Ronnie formerly worked.
OFT officers visited JJB at its Wigan head office this morning. It may be “some years” before the OFT investigation is complete. The retailer said in a released statement
“that in the event that any subsequent immunity agreement, is withdrawn as a result of JJB’s non-compliance with the conditions or as a result of JJB’s evidence being materially undermined in particular circumstances, and an infringement decision is issued by the OFT, JJB “may be liable for a fine from the OFT of up to a maximum amount of 10% of the Group’s turnover”.
Visit the BTC website for compliance help and support for firms in the regulated sector
05.08.09 Passwords stolen for tax returns
Posted by: BTC in General News & Cases, HMRC News and Guidance on August 6th, 2009
Gangs are stealing taxpayers’ passwords and submitting claims for tax refunds to be paid to them, HM Revenue and Customs has warned.
A series of attempted fraudulent claims through the self-assessment repayments system has been discovered.
No figures have been released outlining the extent of the fraud, but a HMRC spokesman said this was a new method of trying to extract money.
He urged people to ensure passwords sent to them by HMRC were kept secure.
“They should treat these details as carefully as they would a Pin for their bank account,” he said.
Attempt
More than 9.5 million taxpayers are in the self-assessment system, which was changed this year to encourage more people to submit their details via the internet.
Two-thirds of all filings for 2007-08 were submitted via the internet, rather than on paper.
When people apply to use the system they are sent a password through the mail which is then used when the taxpayer logs onto the HMRC website over the following 30 days.
However, fraudsters have been getting hold of these passwords and other personal details. This could have been by stealing the mail, tricking people out of the details or even finding the letters discarded in bins.
They then used these details to make fraudulent repayment claims, requesting funds be sent to other bank accounts.
The HMRC spokesman said this was different from so-called phishing e-mails which pretended to be from the tax authority and aimed to discover taxpayers’ banking details so their accounts could be raided.
Liability for any losses would be judged on a case-by-case basis, he added.
04.08.09 FSA bans Cornwall broker for fraud
Posted by: BTC in General News & Cases, HMRC News and Guidance, Professional Bodies on August 4th, 2009
The FSA has banned Cornwall mortgage broker Stephen Sanders for submitting at least three mortgage applications on behalf of customers which he knew contained false and misleading income information.
Sanders withheld information from a prospective employer relating to an investigation into him by his former employer which resulted in his suspension. He also failed to disclose to the FSA that he was the subject of an ongoing disciplinary investigation into his conduct by his former employer when applying to the FSA to perform a controlled function.
For the first customer mortgage application, the income as stated in the mortgage application, was substantively higher that that declared by the customer to HM Revenue & Customs (HMRC). In the second mortgage application the income stated in a mortgage application included some of the income of the customer’s parents which was falsely described as his own. And in the third case there were discrepancies in the application about the income sources of the two customers who were making a joint application.
Margaret Cole, director of enforcement at the FSA, said: “Sanders submitted mortgage applications which he knew to be false and this posed a serious risk to lenders and confidence in the financial system. Our work on mortgage fraud continues as a priority in our campaign against financial crime.”
She added: “We have banned more than 60 mortgage brokers over the last three years and we will continue to ban such people to reinforce the message that knowingly giving false and misleading information to prospective lenders is dishonest. Approved persons must also be open and honest with the FSA and prospective employers about their circumstances. Behaviour which shows lack of honesty and integrity will result in a ban.”
Visit the BTC website for compliance help and support for firms in the regulated sector
25/02/09 Garda fraud officers continue Anglo probe
Posted by: BTC in General News & Cases, International News on February 25th, 2009
THE Garda Fraud Squad raid on the offices of Anglo Irish Bank was unprecedented and could lead to criminal prosecutions, according to legal experts.
On Monday, a judge in Dublin’s District Court granted officers from the Garda Fraud Squad permission to enter three separate premises of Anglo Irish Bank and take possession of any books or documents, including permission to preserve and prevent interference with any material information seized by up to 20 officers working with Ireland’s corporate enforcer.
It was the first time that the Office of the Director of Corporate Enforcement (ODCE) has ever sought permission from the courts to search the premises of a financial institution under investigation for possible breaches of company law.
The rarely used section 20 of the Companies Act 1990 has previously only been brought to bear against individuals.
Last night, the ODCE refused to disclose the reasons for its application to the District Court, citing “operational reasons”.
The warrant is valid for a month but gardai can retain any documents seized for an unlimited period of time, following changes in the law in 2005.
Breaches
Legal experts have said that a series of possible prosecutions could result from the ODCE investigation including charges relating to the failure to keep proper books of account and breaches of rules relating to directors’ loans. The ODCE can also investigate possible offences where an individual who is financially interested in the success or failure — or the apparent success or failure — of the bank, sought to influence the bank’s policy.
The investigation of ownership of shares or debentures, including their acquisition, disposal or transfer, may also constitute grounds for seeking a warrant.
The new acting chief executive of the Financial Regulator, Mary O’Dea, has been working closely with the ODCE and exchanging information on matters relating to Anglo Irish Bank.
This includes an investigation into all loans and other benefits provided by the nationalised bank to its directors and the unwinding of a major Contracts for Difference (CFD) position held by businessman Sean Quinn.
Visit the BTC website for compliance help and support for firms in the regulated sector.
