by A gang has been convicted of Britain’s biggest ever benefit fraud – costing the taxpayer more than £50 million.
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 welfare scam. system.
The five members of an organized crime gang falsely claimed more than £50 million in Universal Credit.
Over a period of four and a half years, between October 2016 and May 2021, the organized crime group made thousands of false claims for Universal Credit using real people or hijacked identities, Wood Green Crown Court heard.
These claims were supported by a range of forged documents, including fake tenancy agreements, forged pay slips and forged letters from landlords, employers, and GPs. If the claims were rejected, the fraudsters would try again and again until they were granted.
The investigation identified three “benefit factories” in London that resulted in repeated false claims for benefits.
The firms claimed to help people get a national insurance number and benefits they are entitled to.
However, it was found that after applicants made their claim for benefits through these three sources, they then left them in the hands of the organized crime group.
The money obtained from these fraudulent claims was then laundered as it was transferred from several accounts through multiple transfers and withdrawn in cash, the court heard.
The defendants were first arrested on 5 May 2021 and several properties were searched.
During these searches, hundreds of “claim packages” containing forged and false documents, as well as wads of cash stuffed into shopping bags and suits, a luxury car and designer goods including watches, jackets and glasses were found and seized. .
After being released under investigation, Ali, one of the five defendants, fled the country to Bulgaria but was extradited back to the UK on 25 February 2023 to face justice.
Faced with a large amount of incriminating evidence including encrypted messages, CCTV footage, forged documents, seized digital devices and bank statements, all the defendants eventually pleaded guilty.
Last month it was revealed that Universal Credit has cost taxpayers £11 billion in fraud over the past two years.
According to the National Audit Office (NAO) losses – mainly caused by fraud and error – last year were still above pre-pandemic levels at £5.5 billion.
Speaking after the case, Ben Reid, specialist prosecutor for the CPS, said: “This case is the largest ever prosecution of benefit fraud brought before the courts in England and Wales.
“Over a number of years, these defendants conspired to commit fraud on an industrial scale against the Universal Credit system, costing the taxpayer more than £50 million.
“By submitting thousands of false claims, organized criminals have enriched themselves from government funds designed to protect and assist the most vulnerable 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 Bulgaria and through the UK desk at Eurojust, to dismantle organized crime and successfully prosecuted. group. The guilty pleas entered by the five defendants reflect the strength of the evidence against them.
“The SPC Proceeds of Crime Division and the DWP will now commence confiscation proceedings against the defendants, to recover any criminal benefit available from this enterprise.”
Mel Stride MP, Secretary of State for Work and Pensions, said: “I am extremely proud of the work of DWP investigators, in conjunction with the Crown Prosecution Service, to bring down this organized crime group.
“Today’s convictions underline our commitment to protecting taxpayers’ money and it is only right and fair that those who steal from the public purse are brought to justice. My message is simple – if you’re committing benefit fraud, you’re cheating the taxpayer, and we’re going to catch you.”
