Tag: Prosecutions

  • 08.09.09 Accountant jailed for eight years for tax fraud

    John Warman who holds no qualifications to be an accountant, operated a sole practitioner practice dealing with the affairs of a number of clients. He conspired to steal £2.5m from HMRC was told by the Judge that he lived in a ‘fantasy world’ as he jailed him for eight years. John Warman drove a £165,000 Bentley Arnage and led a lifestyle of the pretence that he had substantial capital in the bank.

    Judge Andrew Hamilton sentenced 70-year-old Warman, of West Bridgford, at Derby Crown Court. He told Warman, who was a self-employed accountant, that he was simply interested in using his clients to feather his own nest.

    He said: “You cleverly manipulated the finances of clients in such a way that you provided yourself with a very comfortable lifestyle and could not possibly have afforded the running costs of the Bentley on his income. You ran it because you lived in this fantasy world. You took in everybody you ever dealt with.”

    John Warman connived with his client, Simon Fields, who was a property tycoon to manipulate his tax returns to evade paying tax and then to pocket the proceeds.

    Simon Fields, 34, of Trowell Road, Wollaton, pleaded guilty to one count of cheating the public finances to the tune of £392,000 by manipulating his business accounts. He was found guilty of one charge of conspiracy to ‘cheat the revenue’.

    Warman was found guilty of that same charge and a further 28 others which 14 of them were for ‘cheating the Revenue’ and 14 further offences of obtaining money by deception. Both defendants had conspired to understate the profits from Fields’ property empire, and that of his father, Roger Fields, which John  Warman also managed the tax affairs of through his practice, stealing a further £1.5m due in tax revenues.

    False accounts had been prepared showing a “reduced income” and an “increased expenditure” by understating the amount received for renting out the properties, and then overstating the interest paid on loans and the amount paid for repairs and renewals. These false statements were then submitted to HM Revenue & Customs, lying about the level of profit that had been made over a eight-year period from April, 1996, to April, 2004.

    Warman had also acted alone in manipulating the accounts for a second time, stealing more than £1m by further corrupting the business accounts of Roger Fields. He also stole £80,000 from three other Nottingham businesses; a farmer, a firm of solicitors and a transport company.

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  • 04.08.09 FSA bans Cornwall broker for fraud

    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.”

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  • 5 June 2009 EUROPE’S ‘BIGGEST PEOPLE SMUGGLER’ JAILED FOR PIZZA PLOT

    An Afghan criminal who boasted he was Europe’s biggest people smuggler has been jailed for 9 years for smuggling illegal immigrants into the UK.

    Two other members of the people smuggling gang were today sentenced to a total of 19 years.

    The gang is known to be responsible for the illegal immigration of more than 230 young men into Europe, mainly from Pakistan and Afghanistan, although the actual figures are likely to be higher. Almost half of those were smuggled into the UK. The victims were then set to work in pizza outlets to pay off their ’debt’ of up to £10,000.

    Kingston Crown Court heard how SOCA surveillance recorded Abdul Hameed Sakhizada in January 2008 saying that in two months he had facilitated 1800 people, claiming “I am Europe’s agent, I am the smuggler of Europe.”

    SOCA worked with international law enforcement agencies to investigate the gang, which smuggled its victims through Afghanistan, into Iran and Turkey,then to the Greek islands, and into other European countries including the UK.

    Seventeen pizza outlets were raided in January 2008 by SOCA, Kent Police,Northamptonshire Police, Thames Valley Police, Hampshire Police, and UKBA. The gang members were arrested and charged with conspiracy to facilitate the illegal immigration of persons into the EU and the UK, and with conspiracy to launder the criminal proceeds of crime. The victims found were dealt with by the UKBA. Subsequent raids uncovered false birth certificates and driving licences.

    Sakhizada pleaded guilty at the start of the trial on 16 March. His role was to coordinate the crossing into Europe from Turkey to Greece – a service he also provided for other international gangs. Independent agents based in each of the other transit countries would manage the different stages of the journey.

    The main organiser of the UK trade, Abdul Wakil Niazi, who was involved in the management and running of the pizza outlets, along with Sakhizada’s brother, Ahmed Shah Sakhizada, was found guilty on 21 May. They were sentenced to 12 years and 7 years respectively.

    His Honour Justice Welchman called the people smuggling operation “a very serious and well organised enterprise, a complex scheme involving a high degree of planning”.

    SOCA’s Director of Enforcement Trevor Pearce said:
    “People smuggling is a serious crime which exploits vulnerable people for profit and causes harm to individuals, communities and the UK as a whole. This was a highly sophisticated and well organised criminal enterprise which was prepared to extort money from its victims and challenge the UK’s immigration regime. The message today is clear – the UK is not a soft touch for people smugglers. SOCA’s global connections mean we will find you and we will stop you.”

    UK Border Agency Regional Director Tony Smith said:
    “We are determined to tackle those who commit organised immigration crime and bring the perpetrators to justice. This was a major international conspiracy to facilitate the entry of illegal immigrants into the UK. “Those behind it showed total disregard for the law, and their motives were purely financial. We will continue to work shoulder-to-shoulder with SOCA, the police and other enforcement partners to stamp out any abuses of the system,and remove those who have no right to be in the UK.”

    Janet Boston, reviewing lawyer for the Crown Prosecution Service Organised Crime Division, said:
    “This was a profitable, sophisticated operation which was run in a highly organised, business-like manner by men who took advantage of those who willingly left their homeland and families to seek a better life. Inevitably these illegal immigrants were in debt to those who helped them gain entry to the UK and were put to work fast food outlets where the money they earned was taken to pay their debts. Any money the organisers made was channelled back into the people smuggling organisation – enabling the whole circle to begin again. “The defendants all had various positions in the “business”.

     Abdul Hameed Sakhizada and Abdul Wakil Niazi were the main organisers while the prosecution case was that others fulfilled the roles of money collectors, book keepers, provided false documents and transferred the money overseas. This was a major people smuggling enterprise and thanks to the hard work of all the agencies involved and the prosecution team in presenting the case, it has now been dismantled. We will now be looking at making applications under the Proceeds of Crime Act for money made by the organisation and for Serious Crime Prevention Orders which will restrict the defendants’ ability to engage in this activity in the future.”

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  • 3 June 2009 36 million spliffs incinerated as international crime gang is convicted

    Over 12.5 tonnes of cannabis resin – enough to produce 36 million spliffs – has been incinerated after an investigation by the Serious Organised Crime Agency.

    The drugs seizure, from the tug boat ‘Abbira’ which had docked at Southampton, represents one of the largest seizures of cannabis resin in the UK. It was destroyed in a specialist incinerator and needed 6 separate burnings to cope with the volume.

    10 men were convicted at Winchester Crown Court today for their part in the criminal plot.

    In a coordinated operation led by SOCA and involving Leicestershire Police, HMRC andUKBA, 12 men were arrested on the 09th April 2008, at the same time as a search of the Abbira began. Over a number of days, 419 bales of cannabis weighing 12.57 tonnes in total were removed from the fresh water, ballast and foam tanks of the tug.

    The prosecution showed that an Israeli organised crime group employed an Eastern European crew to transport the drugs to the UK for delivery to a Leicester based criminal gang. Significant national and international cooperation was needed to target the various groups, and resulted in a lengthy trial with multiple translations and complex argument to prove the importation offence.

    Andy Sellers, Deputy Director of SOCA, said:
    “This operation was a massive success for international and national law enforcement cooperation. The quantity of drugs seized would have resulted in upwards of three and a half million street deals and would have funded a wide range of other criminal activity. “Taking out both ends of the criminal operation means that not only have we disrupted a supply route into the UK, but also a distribution network that would most likely have stretched right across the UK.”

    Joanne Jakymec, Senior Lawyer, Revenue and Customs Prosecutions Office said:
    “This conviction represents 14 months of dedicated team work between several departments overcoming multiple language barriers. The defendants included nationals from the UK, Israel, Serbia and Ukraine, and as a result international assistance was sought from 10 different countries. The RCPO prosecution team presented over 5000 pages of evidence in support of their case, including material from Israel, USA and Holland.’

    Commander Chris Pratt of HM Revenue & Customs /UK Border Agency said:
    “The cutter crew and rummage teams used breathing apparatus equipment to remove the drugs from the Abbira’s water and ballast tanks. It took our officers nearly five days to recover and offload the 419 bales from these confined chambers. This was a huge amount of cannabis resin to discover on one vessel and an excellent result for all the organisations involved.”

    Detective Chief Inspector David Sandall, who led the Leicestershire side of the investigation, said:
    “This case demonstrates how different agencies can successfully work together to disable the international drugs trade. “Drugs are an international concern and to fight multi-national criminality you have to think, act and work outside the county boundaries. There’s no doubt in my mind that this drugs haul was bound for the streets of Britain, some of which would inevitably have ended up in Leicester. By working with SOCA, the UKBA, HMRC and authorities in Israel we have targeted the problem at the source.

    “There’s £36m of cannabis that will never reach the street dealers and there are 10 men in prison for their part in this crime. Everyone who worked on this case can feel proud of their achievements today and the part they played in a much bigger picture, targeting international drugs criminality, while at the same time disrupting local drugs supply on the UK’s streets.”
    The 10 men will be sentenced on Thursday 04 June 2009 at Winchester Crown Court.

    Details of the verdicts:
    Moshe KEDAR d.o.b 12/07/1927 (Israel) Guilty 29/052009
    Yehezkel SREBRO d.o.b 12/11/1951 (Israel) Pleaded 29/09/08
    Mordechai HERSH d.o.b 25/11/1941 (Israel) Guilty 29/05/2009
    Mohinder Singh RAI d.o.b 22/02/1964 (UK National) Pleaded 29/09/08
    Baljinder Singh RAI d.o.b 18/10/1967 (UK National) Pleaded 29/09/08
    Anjum NAZIR d.o.b 01/02/1970 (UK National) Pleaded 17/02/09
    Dragan STANKOVIC d.o.b 17/12/1954 (Serbian) Guilty 29/05/2009
    Goram OTOVIC d.o.b 28/04/1955 (Serbian) Guilty 29/05/2009
    Dusan MILEUSNIC d.o.b 07/10/1959 (Serbian) Guilty 02/06/2009
    Negovan JOVANOVIC d.o.b 07/09/1950 (Serbian) Guilty 02/06/2009
    Yaroslav KSENOVETS d.o.b 04/09/1973 (Ukraine) Acquitted 02/06/09
    Sergiy KHODOS d.o.b 08/02/1983 (Ukraine) Acquitted 02/06/09

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  • 08.04.09 Liverpool drug gang hit with £140,000 Proceeds of Crime action by Serious and Organised Crime Agency

    liverpool-crown-court1A LIVERPOOL gang behind a massive Scottish drugs farm was stripped of thousands of pounds. John Fitzgibbon, 60, and Michael Fairhurst, 44, ran the sophisticated cannabis operation for more than two years. The Serious and Organised Crime Agency (SOCA) raided the farm on the north-east coast of Scotland in the spring of 2007. Officers took the pair and a third man, Richard Ford, 60, to Liverpool crown court to claw back as much money as possible using the Proceeds of Crime Act. The three were stripped of a total of almost £140,000 during the two-day hearing.

    Ford, a Newcastle man, was caught handing a 2kg bag of heroin to Fitzgibbon and Fairhurst. He will now have to pay back the drug’s estimated street value of £37,891. Robert Altham, prosecuting, told the court he had not attended court and so he was liable to pay back its full value as well as £2,391 in his bank account and £120 on a credit card. The court also heard that SOCA had sold off Fitzgibbon and Fairhurst’s Scottish farm for £61,000. At its peak the the cannabis farm was capable of generating more than £1m a year.

    When officers raided Little Cushnie farm the gang tried to destroy the evidence by setting fire to huge drums of cannabis. But their efforts were unsuccessful and SOCA was able to recover enough evidence to convict the gang. The pair, who also ran a drug pushing operation in Liverpool have also seen their cars impounded and sold off. The court heard that officers had seized a Toyota worth £3,500, a Ford Transit worth £1,000, a Peugeot valued at £3,900 and a Chevrolet worth £4,900. All the vehicles belonged to Fairhurst, of Stanley Park Avenue South, Anfield, and will now be sold off for an estimated total of £7,425.

    Fitzgibbon, of Bellfield Crescent, Huyton, yesterday heard that the SOCA officers had seized a stash of drugs held in the cars worth £202,375 belonging to Fitzgibbon. The court also heard that Fitzgibbon, who is now serving a 13-and-a-half jail term for his part in the drug conspiracy, had laundered money by buying thousands of euros. He will now have to pay out about £40,000 and faces an additional 15 month jail term if he fails to pay. This means he either has to sell or remortgage his home to pay off the debt by October 6.

    Meanwhile, two of Fitzgibbon and Fairhurst’s accomplices who worked as gardeners at the Scottish drug factory are serving 18 month jail terms. Wayne Nickson, 46, of David Street, Toxteth, and James Truman, 43, of Harefield Road, Speke, had both previously pleaded guilty to being concerned with the production of cannabis.

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  • 31.03.09 SOCA Issues Warning To Drug Traffickers

    The Serious Organised Crime Agency is warning drug traffickers they will face a long time behind bars if they attempt to import drugs into the United Kingdom.

    Tobagonians Owen Alfred and Oswin Moore were jailed for 18 and 15 years respectively in London today for their roles in a cocaine trafficking conspiracy. Ten other members of the organised crime gang, which has been completely dismantled by SOCA, were previously sentenced to a total of 144 years.

    Alfred and Moore were extradited from Trinidad and Tobago to the UK in June 2008 and were convicted of conspiracy to import controlled drugs following a six-week trial at Kingston Crown Court.

    SOCA Executive Director Trevor Pearce said: “Drug trafficking causes misery to local communities and funds other criminal activity. SOCA and its partners are committed to using our global partnerships to tackle this problem.

    “Today’s lengthy jail terms send a very clear message to criminals – if you come onto SOCA’s radar we will pursue you, track you down, and put you behind bars. Alfred and Moore have paid a heavy price for importing cocaine into the UK and are now in jail thousands of miles away from their family and friends. Targeting the UK is a high risk business and will not be tolerated.”

    The court heard how gang members in the UK used a money transfer service to pay Alfred and Moore to supply drugs and provide documentation, accommodation, transportation and cover stories for drug mules. Officers identified 21 mules, who had each swallowed up to one kilo of cocaine. They have all been jailed separately either in Tobago or the UK.

    Evidence including money transaction details, false letters and telephone bills enabled officers to prove approximately 140 kilos of cocaine had been sent to the UK between June 2002 and July 2005. The cocaine was being distributed by UK gang members to dealers in South London.

    Both men were arrested on behalf of SOCA by officers from the Trinidad and Tobago Police Service’s Organised Crime, Narcotics and Firearms Bureau. They were extradited to the UK in June 2008 following a court hearing in the Port of Spain.

    Trevor Pearce added: “The success of this investigation is down to the hard work and dedication of officers from both SOCA and the Trinidad and Tobago Police Service. Eight of their officers travelled to the UK to give evidence and I want to thank them for their assistance.

    “By working in partnership with the TTPS and the Attorney General’s office we have successfully dismantled an organised crime gang responsible for causing harm to the public in both the UK and Trinidad and Tobago.”

    As part of a different operation, the UK’s 120 year old extradition treaty with Colombia was used for the first time last week when a man was brought back to the UK by SOCA officers to face charges of money laundering linked to cocaine supply.

    Sentencing details:
    Kingston Crown Court, London – 31 March 2009
    • Owen Alfred, DoB 30/6/68, of Idle Wild, Scarborough, Tobago – 18 years
    • Oswin Moore, DoB 28/4/68, of Big George Junction, Orange Hill Road,
    • Patience Hill, Tobago – 15 years

    Kingston Crown Court, London – 20 July 2006
    • Paul Williams, DoB 22/06/67, Harris House, Brixton, London – 22 years
    • Delroy Gibson, DoB 19/06/67, Church Road, Gypsy Hill, London – 21 years
    • Anson Charles, DoB 25/08/59, Alexander Drive, Gipsy Hill, London (T&T national) – 20 years
    • Charles Gordon, DoB not known, Broadstone House, Kennington, London – 20 years
    • Wayne Brown, DoB 20/04/65, Whitehorse Lane, Thornton Heath, London – 10 years
    • Kerin Burris-Gordon, DoB 23/06/82, Broadstone House, Kennington – 10 years
    • Derek Anthony, DoB 28/08/68, Roberts House, Tulse Hill, London – 15years
    • Stephanie McQueenie, DoB 05/12/79, Lockwood Square, Rotherhithe, London – 13 years
    • Stacy Burris, DoB 13/07/84, Alexander Drive, Gipsy Hill, London – 7 years
    • Yvonne Anthony, DoB 03/09/75, Letchford Gardens, White City, London – 6 years

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  • 30.03.09 Wirral drug baron’s wife’s Champagne lifestyle comes to end

    liverpool-daily-post-news-dynamic-panels-image-3-7581387671SHE enjoyed a life of the most vulgar excess, once joining her husband for a £600 chauffeur ride to Claridges for a £345 meal at Gordon Ramsay’s restaurant. But yesterday the glamorous wife of a Liverpool drugs baron was locked up for laundering his ill-gotten gains. Former beautician Sara Shea used her university-educated husband Keith’s drug money to pay for an enviable lifestyle of luxury.

    He was locked up for 15 years in 2007 for plotting to flood the streets with cocaine, while storing a deadly arsenal of weapons.

    The couple married in a lavish Barbados beach ceremony – spending £12,000 on flights alone – before throwing a £6,000 homecoming at Wirral’s Hillbark hotel. They splashed out £1,095 on dinner in the Oxo Tower – washed down with a £850 bottle of Cristal champagne. Their love of designer watches included an exclusive Chopard, a diamond-encrusted Chanel and his 18-carat gold Rolex. The latter cost £11,530.

    Of course, no luxury lifestyle is complete without expensive cars.  The Sheas had their share of Porsches, before settling on the £110,000 Aston Martin police found when they raided their £300,000 Wallasey home, where the steam room had its own plasma TV. The Aston was accompanied by a £46,500 BMW and a £76,000 Porsche.

    In just a year, the Sheas spent £90,000 in lavish entertainment, including £5,000 on hospitality at the British Open golf and £1,000 a time hiring a box at the MEN Arena. Mrs Shea owned handbags worth £12,000, with an account at Christian Dior’s boutique in Monaco.

    Yesterday, smartly-dressed with sunglasses, and carrying a designer bag, she was jailed for 2½ years. Judge David Harris, QC, said: “There are other partners who may be in this position.

    “The message has to go out that, if they meddle in the proceeds of crime, particularly drug crime, there will be serious repercussions for them.”

    Liverpool Crown Court heard the jet-set couple holidayed in luxurious resorts in Mexico, Marbella, and Nice. Sara Shea claimed she never knew her husband was a drugs lord.

    But Graham Pickavance, prosecuting, told the court the couple were stripped of £7,000 and 2000 euros at Liverpool’s John Lennon airport that was heavily contaminated with Class A drugs. Mrs Shea was carrying half the money, which they never tried to reclaim. The dark-haired 30-year-old, of Montpellier Court, Wallasey, later admitted she suspected their life-style was funded by crime.

    She admitted 11 money laundering charges, totaling £104,000.
    Jonathan Clarke, defending, told the court Sara Shea had inadvertently become involved because of her husband’s actions. He said: “It is an unusual case because this defendant has played no role whatsoever in the offences that lay in such funding coming into the household coffers.
    “Her money laundering was simply spending the money she received from her husband, or being in possession of items he had bought. “She found herself there rather than seeking it.”

    Mr Clarke told the court Shea, who is now dependant on beta blockers and sleeping tablets, had moved away from crime and had been working full-time in Debenhams. She had no wish to return to her husband.

    Judge Harris agreed Sara Shea had “undoubted qualities”, but said she had led an “excessively luxurious lifestyle”. “You chose to turn a blind eye, to ask no questions and to shelter yourself from developing certain knowledge to the nature of his activity.”

    Keith and Sara Shea will face a ‘proceeds of crime’ hearing on July 18.

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  • 31/01/2009 Human trafficker and Benefit Fraudster to payback £42K

    The first ever case of human trafficking in Cheshire ended on 23 January 2009, with the sentencing of Cai Hong Yang, 44, at Warrington Crown Court.

    Yang received 16 months for the police charges against her, and an additional four months for charges of benefit fraud, brought against her by the Department of Work and Pensions. She also received a confiscation order for the sum of £42,095 for proceeds made from her business activities and cash obtained from state benefits.

    On 11 December 2008, Yang, of Moorcot Court, Manchester, appeared before Judge David Hale at Chester Crown Court and pleaded guilty to four counts of managing a brothel, one count of controlling prostitution for gain and one count of trafficking a human being within the UK for sexual exploitation.

    Cai Hong Yang, a Chinese national, was arrested as part of Cheshire’s response to Operation Pentameter, a national operation which aims to rescue and protect victims of trafficking for sexual exploitation. As well as aiming to identify and disrupt those involved in criminal activity, the operation is intended to increase the knowledge and understanding of human trafficking in the UK and raise awareness of the issue.Yang, who has operated under several aliases, including Nelly Yang and Tara Lee, used premises in Egerton Street, Albert Street and Sellar Street in Chester and Delamere Court in Crewe to conduct her activities.

    Commenting on the case, DS Mark Fletcher said: “This is the first trafficking conviction ever in Cheshire and clearly shows our determination to deal with those who exploit others. The fact that Yang received a custodial sentence reflects the very serious nature of these offences and the tireless work that officers from Cheshire Police have undertaken over the past two years.”

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  • 23/12/2008 Confiscation order for Plymouth man

    At Plymouth Crown Court on 28 November 2008, the Plymouth Asset Recovery Unit secured a confiscation order in the sum of £37,085.00 against a local unemployed man.

    The man had previously pleaded guilty to disguising criminal property namely cash from the proceeds of trading in illegally imported tobacco. He also pleaded guilty to two offences of possession of class C drugs with intent to supply.

    A female associate had told the Court at a contested hearing that £30,000.00 of the money belonged to her and was given to the man to look after. Her evidence was discredited and the male did not give evidence in court.

    The Judge found this remarkable and agreed the benefit figure of £182,614.75 and granted the Order.

    Detective Sergeant Jim Hinchliffe in charge of the criminal investigation said: “This was an unemployed man making substantial amounts of money allowing him to indulge in gambling to the tune of £620,000.00. The Confiscation Order ensures that on his release from prison he could not enjoy the benefits of his criminality”. He added that ‘”The public can gain confidence that the police are working hard to remove criminal assets. This operation was conducted by the police and HMRC and is an excellent example of partnership law enforcement.”

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