HMRC says former worker ‘pivotal’ to £2.4m VAT fraud as gang of six jailed

Members of a gang who carried out a “highly sophisticated” £2.4 million VAT fraud have been jailed for a total of more than 24 years.

The group of six was found guilty of conspiracy to cheat the public revenue following a trial at Southwark Crown Court, HM Revenue and Customs (HMRC) said.

They used insider knowledge provided by former Scottish HMRC worker Susanne Green, 38, from Elgin, to fraudulently claim millions in VAT repayments.

A three-year investigation found the former tax office employee had used her position working in the electronic payments team in Southend, Essex, to identify unallocated VAT payments and fraudulently pay them elsewhere.

She used company details provided by accountants Michael Perry, 46, from Essex, and Daniel Weidner, 47, from Hampshire, to fraudulently misallocate VAT payments to specified businesses.

The investigation found that Arthur Lee, 55, from Essex, who was in a relationship with Ms Green, received details of unallocated payments from her and passed them to Mr Perry and Mr Weidner. The pair then used their clients’ firms to claim the VAT payments for themselves.

Joff Parsons, an assistant director at HMRC’S Fraud Investigation Services, said Ms Green “abused her position and was pivotal to the theft”.

He added: “The defendants used a network of front companies to receive the fraudulent payments and to launder the proceeds.

“Had HMRC not stopped them,theycouldhaveattempted to steal millions more.”

Londoner Michael Myatt, 56 and Stephen Maish, 54, from Wigan – also allowed their identities and companies to be used as part of the fraud.