Tag: Prosecutions

  • Money Laundering Regulations Breaches

    HMRC issue fines for Money Laundering Regulations breaches

    Obliged firms play a vital role in the financial systems of the UK’s economy. They facilitate transactions of significant importance daily. However, that also exposes them to being used for illegal purposes. Therefore, they must always act with integrity and abide by the rules. One of the regulations that they must pay special attention to is the Anti-Money Laundering Regulations.

    For professional firms that provide defined services, the regulations require their anti-money laundering systems and controls meet the UK’s anti-money laundering regime’s requirements. The regulations require these firms to ensure that relevant employees are kept aware of the firms’ policies, controls and procedures and are accountable for their actions. (more…)

  • Former ATT President Charged With Tax Fraud

    Former ATT President
    Former ATT President
    Andrew Meeson, the former President of the Association of Taxation Technicians and three of his business associates who administered a pension scheme, have been charged with stealing £5million through a tax fraud targeting the pension industry.The four – three men and a woman – were arrested last year in dawn raids carried out by HM Revenue & Customs (HMRC) investigating an alleged multi million pound fraud. The raids took place at residential and business premises in the West Midlands, Derby and Leicester.

    Simon De Kayne, Assistant Director of Criminal Investigation for HMRC, said: “Four people have been charged linked to what we believe is a fraud resulting in over £5 million being stolen from public funds. We are committed to bringing such cases to the courts and depriving those involved of the proceeds of their crime.”

    Meeson resigned from his role as president of the ATT last week in order to fight the charges.

    On April 8 2010, the Pensions Regulator took action to suspend Tudor Capital Mgt from acting as trustees from pension trust schemes at the same time HMRC obtained search warrants for the company.

  • 11.07.11 Solicitor Jailed For Corruption

    A Henley-on-Thames based solicitor is serving a 16 month prison sentence for abusing his professional position.

    James Thorburn-Muirhead was sentenced on 29th June after a SOCA investigation revealed his links to a drug dealer, his involvement in the theft of clients’ monies and his failure to disclose information under the Suspicious Activity Reports regime.

    SOCA’s initial interest was in Muirhead’s relationship with convicted drug trafficker Steven Smith and the suspicion that he was involved in laundering the proceeds of Smith’s criminal activity. However, the investigation soon uncovered other serious offences.

    Muirhead had been operating as a sole proprietor solicitor, trading as Thorburn & Co in the affluent Oxfordshire town. Search warrants executed at his offices and home address in July 2007 resulted in the seizure of several hundred conveyancing files along with accounting records and computers. The evidence linked Muirhead with a drug trafficker, but also pointed to other criminality including the misappropriation of money from clients’ accounts.

    In July 2009 Muirhead was charged with 10 counts of theft and false accounting, one count of money-laundering and one count of failing to disclose under the Proceeds of Crime Act. Following a plea bargain offered by his defence team with Muirhead pleading guilty to four counts of Theft and False Accounting and the one count of Failing to Disclose.

    Muirhead’s benefit from criminal conduct was agreed at £196,198.00 and a Confiscation Order was made for the same amount, payable within 9 months. A two year default sentence will apply if he fails to meet that deadline, and he will still be liable to pay the sum. He was also ordered to pay a Compensation Order of £12,666.67 and will pay £25,000.00 towards prosecution costs.

  • 11.02.11 An accountant has been found guilty of tipping off a client under PoCA

    An Accountant has been warned he will go to jail after being found guilty of tipping off a client about a police investigation.

    The stark message to Kishor Doshi, director of Sunderland firm Otax, came after he was convicted of an offence under the Proceeds of Crime Act.

    The jury of eight women and four men at Newcastle Crown Court took just 30 minutes to reach their verdict, after hearing two days of evidence.
    Doshi, of Dunelm South, Sunderland, admitted he rang and told a client that his office had received a police order commanding him to hand over the man’s accounts just hours after he discovered it.

    The order relates to a money laundering investigation by Northumbria Police’s Economic Crime Unit, called Operation Galapagos, into the dealings of the man who cannot be named because of a court ruling.

    But the 60-year-old told the hearing at Newcastle’s Moot Hall that he did not know the document, called a Production Order and authorised by a judge, related to a criminal investigation and was supposed to be kept secret by law.

    Instead, he thought it was part of an ongoing civil inquiry by Revenue and Customs officials and said in interview: “I thought he had a right to know”.

    Earlier in the case, the Tanzanian-born businessman, who has been an accountant for 23 years, told the court he only read the first two paragraphs of the Production Order before he made the first in a series of phone calls between him, his client and an associate.
    But prosecutor Peter Gair said an accountant of Doshi’s experience would have known a Production Order was a criminal investigation led by police.

    Mr Recorder Kershaw adjourned sentencing until next month while reports are prepared.
    But he warned Doshi: “I am going to grant you unconditional bail in the mean time, but you must brace yourself for an immediate custodial sentence.”

  • 02.07.10 Chartered accountant faces eight years behind bars

    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 April 2010 SOCA announce one of six most wanted arrested in Amsterdam

    One of six most wanted arrested in Amsterdam

    The new Dutch Crimestoppers operation saw the arrest of its first target yesterday.

    James Vincent Muldoon, 30, of Liverpool, absconded from his trial for armed robbery in 2007 and was sentenced in his absence to 13 years in prison.

    He was believed to be on the run in the Netherlands and became one of six men on the ‘most wanted’ list when SOCA, Crimestoppers UK, BelM (Dutch Crimestoppers), Amsterdam Police and the Amsterdam office of the Public Prosecution Office launched Operation Return in March.

    This joint initiative aims to prevent UK fugitives hiding from the law in Amsterdam. A similar Crimestoppers campaign in Spain – Operation Captura – has successfully led to the return of 31 of the 50 most wanted fugitives hiding out on the Spanish Costas. Some of the criminals wanted there are thought to have moved on to Amsterdam because the campaign in Spain made life too uncomfortable for them.

    Muldoon was arrested on 21 April at a house in Amstelveen. He is now in custody and will appear before a Dutch court in the near future in relation to his extradition to the UK.

  • 31.03.10 HMRC Announce Penalties for non-registration

    HMRC Announces important information for Money Service Businesses, High Value Dealers, Trust or Company Service Providers and Accountancy Service Providers who have failed to apply for Money Laundering Regulations Registration.

    HMRC announce that a new late registration penalties policy has been introduced for Money Service Businesses, (MSBs) High Value Dealers, (HVDs) Trust or Company Service Providers, (TCSPs) and Accountancy Service Providers (ASPs).

    Should businesses fail to register with HMRC they will be liable to a fixed penalty and any unpaid fees. These penalties only apply to businesses that must be registered with HMRC.

    The new late registration penalty will be based on fixed penalty and any unpaid fees. This fixed penalty had been set at a £5,000. HMRC may issue a reduced penalty to businesses who notify them that they have been operating without being registered with us. This partial voluntary disclosure may lead to reductions in the penalty up to 70%.

    Additional information for Trust of Company Service Providers and Accountancy Service Providers

    From 01 April 2010 Trust or Company Service Providers and Accountancy Service Providers who have not registered with us will be liable to a penalty or prosecution.

    If you send HMRC your completed application form and appropriate fees without further delay you may be given a reduced penalty. Under the Money Laundering Regulations Trust and Company Service Providers also have to apply for a ‘fit and proper’ test as part of the registration process.

    If you are a Trust or Company Service Provider which should be registered with HMRC but cannot submit all completed fit and proper forms, then you should at least send us application form MLR 100 immediately.

    Send the completed F&P forms with the fee as soon as possible thereafter because, without them, your application is not complete. Forms and fees should be sent, along with a brief note explaining why your application is late and/or incomplete, to:

    Money Laundering Regulations Registration Team
    HM Revenue and Customs
    7th Floor, Alexander House
    21 Victoria Avenue
    Southend-on-Sea
    SS99 1AG

  • 15.01.10 Hunslet Man Arrested for Money Laundering

    A 35-year-old Hunslet man has been arrested on suspicion of money laundering as part of an investigation involving the City and Holbeck Proceeds of Crime Team and the Holbeck Neighbourhood Policing Team (NPT).

    Police officers and police community support officers (PCSOs) from the NPT entered the unemployed man’s home yesterday afternoon using a warrant obtained under the Theft Act, as part of an investigation into handling stolen goods.

    Inside the property officers found a large number of high-quality electrical goods including a plasma television, stereo system, laptops and computer equipment, and kitchen items, worth thousands of pounds. The man was also found to have £5,200 in cash in his coat pocket.

    The man was able to produce receipts for the items, but these were all paid for in cash and he is believed to have been unemployed for a number of years.  He was arrested on suspicion of money laundering, and after being interviewed he was bailed pending further enquiries.

    The cash has been seized by the Proceeds of Crime Team, who will now carry out an investigation into the man’s lifestyle to determine how he has acquired his assets without a declared income.

    If it can be proved that these assets have been acquired through criminality, the Team can then apply to confiscate them under the Proceeds of Crime Act 2002.

    Why Should They?
    Detective Sergeant Tom Walsh of the City and Holbeck Proceeds of Crime Team said: “Anyone who has expensive possessions but no obvious income must raise eyebrows among people who earn honest livings in our communities, and I would appeal to these residents to contact the Why Should They? campaign if they have any suspicions about how these people have acquired their assets.”

    The warrant was carried out following information from the community, and Inspector Damien Miller of the Holbeck NPT said: “We’re keen to show local residents that we’re listening and will act on the information they give us. Warrants like this are a great example and I would encourage people to continue contacting us about the issues they want us to tackle.”

    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

    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.

    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