Bulgarian fraud gang raised £50m from ‘benefit factories’
A GANG has been convicted of Britain’s largest benefit fraud, costing the taxpayer more than £50million.
Bulgarian nationals 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.
The five members of an organised criminal gang falsely claimed more than £50million in Universal Credit from October 2016 to May 2021, using either real people or hijacked identities, Wood Green Crown Court heard.
These claims were supported by forged documents, including fictitious tenancy agreements, counterfeit payslips, and forged letters from landlords, employers and GPS. If the claims were rejected, the fraudsters would try again until they were granted.
The investigation identified three “benefit factories” in London from
‘This case is the largest benefit fraud prosecution ever brought to the courts in England and Wales’
which repeated false claims originated. Alongside fraudulent claims from fake IDS, the businesses claimed they could assist people with obtaining a National Insurance number and benefits.
However, it was found that once the claim was successful, the money was laundered by the organised crime group and withdrawn in cash.
The defendants were first arrested on May 5 2021 and several properties were searched, with hundreds of “claim packs” containing forged and false documents seized, as well as bundles of cash in shopping bags and suitcases, a high-end car and designer goods including watches, jackets and glasses.
Following his release under investigation, one of the five defendants, Ali, fled to Bulgaria but he was extradited back to the UK on Feb 25 2023.
When faced with the large amount of incriminating evidence which included encrypted messages, CCTV footage, seized digital devices and bank statements, the defendants eventually all pleaded guilty.
Last month, it was revealed that Uni
‘If you are committing benefit fraud, you are cheating the taxpayer, and we will catch you’
versal Credit has cost taxpayers £11billion in fraud in the past two years.
Losses, which are mainly the result of fraud or error, were last year still above pre-pandemic levels at £5.5billion, according to the National Audit Office.
Ben Reid, specialist prosecutor for the Crown Prosecution Service (CPS), said: “This case is the largest benefit fraud prosecution ever brought to the courts in England and Wales.
“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 (DWP) and our international partners in both Bulgaria and through the UK desk at Eurojust, to dismantle and successfully prosecute the organised crime group,” he continued.
“The guilty pleas entered by all five defendants reflect the strength of the evidence against them. The CPS poceeds of crime division and DWP will now pursue confiscation proceedings to remove from them any available criminal benefit from this enterprise.”
Mel Stride, the Work and Pensions Secretary, said: “I am immensely proud of DWP investigators’ work with the CPS 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.”
All five defendants will appear for sentencing on May 28 2024.