Forger jailed for two more years for VAT fraud

Forger jailed for two more years for VAT fraud

A South Lanarkshire man has been jailed for more than two years for an elaborate a VAT tax fraud concocted to repay a confiscation order previously imposed on him for forging banknotes.

Glasgow Sheriff Court head this week how John Farrell, 61, from Thorntonhall, used fake passports and driving licences to set up bogus companies and bank accounts to fraudulently claim more than £180,000 in VAT repayments.

HMRC began looking into the bogus companies after concerns were raised about the VAT claims and an officer visited Farrell, who was using the name Andrew Strachan.

HMRC officers searched Farrell’s home on 5 June 2013 and found more than 24 mobiles, laptops, memory cards and false passports which they seized.



A bag containing a laptop, paperwork relating to the bogus companies, prepaid credit cards and phone sim cards was found hidden in the eaves of the £1m property, while a false driving licence in the name of “Andrew Strachan” containing Farrell’s picture was discovered on an electronic device recovered. Farrell was arrested and charged after interview on the same day.

HMRC said he stole £180,591.20 by claiming VAT repayments for several bogus companies between 2011 and 2012.

The HMRC investigation found Farrell laundered £75,000 of the money through a bogus Cypriot account.

He had used the scammed VAT repayments to pay most of a £96,000 confiscation order imposed after he was jailed for five years eight months for running a huge counterfeiting operation at a factory in East Kilbride producing fake banknotes.

Farrell is now facing another 27 months behind bars and a serious crime prevention order (SCPO) is also being sought against him for when he leaves prison.

If successful, it would be the first to be imposed on the back of a HMRC conviction in Scotland.

Michael Mullen, 41, an associate of Farrell’s, pleaded guilty to owning or controlling registered addresses for false businesses to facilitate the commission of VAT fraud in a hearing at Glasgow Sheriff Court last month.

Mullen, from Cambuslang, South Lanarkshire, was sentenced to a Community Payback Order and a Restriction of Liberty Order at the same court on Monday.

Cheryl Burr, assistant director, fraud investigation service, HMRC, said: “This was a shocking ploy by Farrell to pocket public money. His actions were one of pure greed, so he could lead a comfortable lifestyle in a house worth more than £1m.

“He then had the cheek to use the proceeds of this fraud to repay a confiscation order imposed on him. Rather than repay the public purse, he chose to steal from it.”

An associate of Farrell’s, Michael Mullen, pleaded guilty to owning or controlling registered addresses for false businesses to facilitate the commission of VAT fraud at Glasgow Sheriff Court. He was sentenced to a he was sentenced to 200 hours of unpaid work and a restriction of liberty order between 7pm and 7am for six months.

Confiscation proceedings are underway.

 

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