The £54m fraudsters
Biggest benefits scam UK’s ever seen, by gang of Bulgarians using fake IDs to make 6,000 false claims
A GANG of Bulgarians have admitted masterminding the theft of almost £54 million in Britain’s biggest benefits fraud.
The five criminals used a combination of fake identities and real customers to make roughly 6,000 fraudulent Universal Credit claims over four-and-a-half years.
They operated out of three ‘benefits factories’ in north London, one of which was behind a functioning corner shop selling groceries.
The enormous haul of money gained from the claims was laundered through a number of accounts, then withdrawn in cash – with £750,000 in bank notes found stuffed in suitcases at one of their homes.
Investigators who arrested the gang and searched their properties also discovered hundreds of ‘claim packs’ containing forged and false documents, and more than 900 digital devices.
On one of the seized mobile phones was a video showing the fraudsters showering their flat with hundreds of £20 notes.
They used their ill-gotten gains to fund luxury lifestyles, buying designer clothes, watches and even a high-end Audi sports car.
Specialist Crown Prosecution Service prosecutor Ben Reid said: ‘ This was an industrialscale fraud committed by an organised criminal group.
‘They carried out a sustained attack on a system designed to support the most vulnerable people in our society and treated it like a cash machine to fund their own lavish lifestyles.’
Galina Nikolova, 38, Stoyan Stoyanov, 27, Tsvetka Todorova,
52, Gyunesh Ali, 33, and Patritsia Paneva, 26, all entered guilty pleas at Wood Green Crown Court which were yesterday accepted by the CPS.
The businesses where they operated claimed to assist people with obtaining a national insurance number and benefits to which they were entitled.
But between October 2016 and May 2021, the organised criminal group made about 6,000 fraudulent claims supported by forged documents including fictitious tenancy agreements, counterfeit payslips and forged letters from landlords, employers and GPs.
If any claims were rejected, the fraudsters would persevere until they were approved. All five were arrested on May 5, 2021, but Ali fled to Bulgaria following his release under investigation.
He was extradited back to Britain in February last year and eventually admitted conspiracy to make false representations, possession of articles for use in a fraud and possessing criminal property.
All five will be sentenced at Wood Green Crown Court on May 28. Mr Reid said: ‘These convictions mark what has been the largest benefit fraud prosecution and investigation ever brought to the courts in England and Wales.
‘For years, these defendants were involved in an organised criminal gang which conspired to create thousands of false claims for Universal Credit, at a staggering cost of more than £50 million to the taxpayer.’
Mel Stride, Secretary of State for the Department for Work and Pensions, which led the probe with the CPS, said: ‘Building on our success in preventing £18 billion going into the wrong hands in 2022/23, these convictions underline our commitment to protecting taxpayers’ money.’
The CPS Proceeds of Crime Division will now pursue confiscation proceedings against the convicted gang members.
Meanwhile, the Government is currently legislating for new fraud powers which will allow the DWP to request data from third parties, such as banks, that could show signs of potential benefit fraud and potentially save the taxpayer up to £600 million over the next five years.
‘Treated system like cash machine’