Urmston man jailed for VAT fraud (From Messenger Newspapers)

Urmston man jailed for VAT fraud

2:48pm Wednesday 28th October 2009

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AN Urmston man has been jailed for his part in a £1.7m VAT fraud.

Peter Wood was part of a criminal organisation involved in setting up fake businesses and registering for VAT.

They claimed to be trading throughout England and Scotland and claimed back VAT on zero-rated items for fake business costs. They registered 15 bogus companies between 1998 and 2004 across Merseyside, Cheshire, Derbyshire, Leicestershire and Scotland.

During the investigation analysis of bank accounts declared by the defendants showed that the only money going into them was from the VAT repayment system – they were not genuine business accounts.

The money was then systematically withdrawn through cash machines by the culprits. The gang used the fraud money to invest in property portfolios and fund their lifestyles.

Those jailed include financial advisers Wood, of Dalton Gardens, Urmston, Manchester, and Gary Edgington 55, of Water Street, Bollington, Macclesfield,and Michael North, 70, of Meadow Street, Stockport.

Wood, 52. who has no previous convictions, was jailed for four years eight months, Edgington received four years and North was jailed for 15 months.

Liverpool Crown Court heard that Wood was a self-employed financial adviser who specialised in tax advice.

He helped with the purchase of properties for the gang and in some circumstances completed false invoices in the fraud.

Judge William George described him as having played a 'leading and organisational role' along with some of the others. He said that £700,000 had come within his control and he had made £50,000 from the plot.

The court heard that the scam involved a paper trail of false invoices and bogus transactions. The supposed zero-rated goods included children’s clothes, animal feed, straw, hay and fruit and vegetables.

Some of the defendants operated from office addresses and had a professional veneer and all gained by thousands of pounds going into their bank accounts.

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