30 March - Britannic Referred Over Cheney - Britannic Asset Management, managers of the pension fund of C W Cheney, a Birmingham locksmith,will be referred to the pensions ombudsman over a £3m payment from the fund. This was under the administration of Kevin Sykes, who is now being investigated by the SFO.
30 March - Fraudster in £5.4 m Investment Scam Jailed - Barry Maude was jailed by Chester Crown Court for his involvement in two investment frauds. In one scam he sold high return investments in luxury Caribbean cruise conferences and opulent hotels in Mexico. In the second a Singaporean businessman was persuaded to invest $1.2m in a similar "high-yield" investment opportunity. His partner in the second scam is being prosecuted in the US whilst a partner in the first scam, solicitor Marshall Ronald, was acquitted by a jury on the 24 March. The investigation was a joint operation by the SFO and the FBI.
30 March - Maxwell Fraud Inspectors Set to Criticise Big City Firms - The investment banks Goldman Sachs, Samuel Montagu & accountancy firm Price Coopers Waterhouse are all expected to be taken to task by inspectors, appointed to investigate how Robert Maxwell was able to commit one of the biggest UK business frauds of all time. Maxwell manipulated the share price of Mirror Group Newspapers through illicit purchases of MGN stock and the 1991 flotation of Maxwell Communication Corporation. Maxwell's sons, Kevin & Ian, were subsequently tried but found not guilty of fraud. The prosecutions held up the publication of the inspectors' 350-page report. Nonetheless the report contains scathing criticism of Kevin Maxwell. The report says his actions were "inexcusable" and he may be barred from being a director of a UK company. The report has cost £8.5m and taken 9 years to produce. Kevin Maxwell said he regretted "profoundly" the impact on all those affected by the scandal and he also said: "I accept my share of the responsibility for the corporate disaster that befell my father's business. I live with the aftermath every day in terms of people's reaction to me as an individual in both my private and professional lives. I now hope to able to draw a line under the past."
30 March - Prentice V Hereward Housing Association And Another - It was in the interests of justice to order a re-trial of a civil action where the defendant sought on appeal to adduce new evidence which disclosed a strong prima facie case that the trial judge had been wilfully deceived by the claimant. For full details see the
Times Law Report.30 M arch - R v Williams - If there had been a material non-direction at trial and a conviction was arguably not obtained according to law under article 6.2 of the European Convention on Human Rights, it did not follow that the conviction was automatically unsafe. The approach applicable in a case of breach of article 6.1 guided the Court of Appeal in reviewing safety. For full details see the
Times Law Report.28 March - 6 Fraud Charges Against Priest Dropped - Father Daniel Magill, a Catholic Missionary based in Coates, Peterborough faced 12 charges of social security fraud for failing to disclose that he was a priest and had 3 houses in Northern Ireland whilst claiming Benefits Agency benefits and council tax benefit from
Fenland District Council.Comment: This is an important case being heard by Liverpool Crown Court. Magill consistently and dishonestly misled the Benefits Agency and the Council about his true financial position and so he received income support and council tax rebates to which he was not entitled. However, following legal arguments Judge John Phipps instructed the jury to consider if Magill was entitled to any of the Benefit, presumably the council tax benefit, on the basis of the IS having been awarded – then there may not be an operative deception. Obviously they have not considered the South Ribble judgement. So the jury have already returned not guilty on six charges of obtaining money by deception. We will attempt to get the full judgement for this once the case is finished.
27 March - Charity Swindle Sends Duo To Jail - Deborah Munro, of Beckton, East London and Ian Dyke, of Manningtree, Essex were two trustees of a children’s cancer charity, Hands of Hope but they banked only a small amount of the money collected through collection tins and kept the rest for themselves. As a result of being caught, charged and prosecuted Munro was jailed for 2 ½ years and Dyke for 15-months.
Comment: Too bloody right!
24 March - Champagne Scam Ends in Jail Term
- Craig Dean, who last month was convicted of a £4.5m fraud where low quality sparkling wine was sold as champagne for millennium celebrations, has been jailed for three-years.23 March - Benefit Fraud Inspectorate Report: Glasgow City Council - The Benefit Fraud Inspectorate's report on Glasgow identified a number of weaknesses in the administration and counter fraud work. The Benefit Fraud Inspectorate expressed concerns about backlogs with Appeals and Review Boards and felt that there were inconsistents and ineffective work practices in administration. However, the Inspectorate thought that there was actually some good counter fraud work and the council is commended for its work in tackling internal fraud.
23 March - Benefit Fraud Inspectorate Report: London Borough of Hackney - Hackney's Benefit Fraud Inspectorate report simply states that the standard of service over the last three years is very poor. The council is accused, by the Benefit Fraud Inspectorate, of failing to invest sufficient resources in the client management side of the outsourced service. As with some other recent reports, the Benefit Fraud Inspectorate notes that some counter fraud work is good but that insufficient resources and training affect performance.
23 March - Benefit Fraud Inspectorate Report: Sheffield City Council - Like the Benefit Fraud Inspectorate report on Hackney, Sheffield is criticised by the Inspectorate for delivering a poor service and failing to resource the client supervision of its contract.
Comment: The Sheffield Star took the Benefit Fraud Inspectorate's report and wrote an article which completely rubbished the service. However, this is not surprising, considering that the Star has been running regular stories on the poor performance of the Council's contractor, CSL.
23 March - Crackdown on Benefit Fraud - Sandwell police and the Benefits Agency are joining forces to tackle benefit fraud. Police officers are investigating cases where claimants make false reports of robbery in order to make additional cash applications from the Benefits Agency.
23 March - Ex-Hotel Boss is jailed For Fraud - As reported previously, Stephen Pinchbeck the former manager of the Crown and Moat House International Hotels, was found guilty of defrauding the hotel chain. He has now been sentenced to four years imprisonment for his £100k fraud.
23 March - Police Investigate Alleged Hoax-Calls Scam - South Wales police are starting an investigation into Fire Brigade allegations that three part-time fire-fighters made hoax 999 calls to increase their earnings.
Comment: If this is true it is disgusting that fire officers should do such a thing.
23 March - Fraud Squad Investigate Hackney Benefits Scam - Police, investigating Housing Benefit and Council Tax Benefit fraud at Hackney Council, have brought in forensic investigators to look at the council's IT systems.
Comment: I cannot help but wonder why the Benefit Fraud Inspectorate didn't pick up the problem of fraud during their inspection. It is also noticeable that the council's contractor, ITNet, has come under considerable criticism for having only a 4% quality check. How many councils manage more ?
23 March - Ex-JP jailed - Alfred Webley, an ex-magistrate, was jailed for a fraud which involved taking money from foreign students to support claims that they were in full time education, to help with their application for asylum. Webley was jailed for two years.
22 March - Benefits Boss Jailed For Fraud - Tina Harrison-Jones of Holywell, who was the Housing Benefit manager for Flintshire County Council, has been sentenced to 18-months having been found guilty of directing 43 bogus Housing Benefit payments into her three bank accounts.
Comment: This trial lasted seven days because Jones pleaded not guilty to the 14 specimen charges, totalling £19.5k. However, the overall amount of the fraud was £53k. References to the court, from a wide range of people, showed Jones to be a good mother to her two children aged 5 years and 22 months. The judge took into account the effect imprisonment would have on Jones' children and, as a result, sentenced her to 18-months of which she would serve half. As a result of the verdict, Jones' husband has resigned from his job to prevent embarrassment to his employers who work with the public sector. Very sad!
22 March - MPs Back School Plan to Spot Bribery - The Government is adding Money & Morals to its business ethics course for 15 to 18-years old. The core part of the course teaches students how to identify, avoid and report corruption when working in business.
22 March - Hughes Appoints Local Government Standards Board Members - Beverly Hughes has appointed 6 new members to the Standards Board – the body that ensures the highest standards of conduct by Local Authorities and investigates misconduct by councillors. Following the appointment last month of Tony Lloyd, as the Chair, the following have been appointed: Patricia Hughes as Deputy Chair and John Bowers, Alan Doig, Margaret Pratt, Paul Sabapathy and Roger Taylor.
Comment: The appointment of Alan Doig is an interesting and welcome addition to the board.
22 March - R. V Secretary Of State For The Home Department, Ex Parte Balbo B And C Auto Transporti Internazionali - A lorry owner, in whose vehicle illegal immigrants were found, had an alternative remedy to judicial review of the Home Secretary's decision to issue a notice of liability. If he believed that he had a valid defence under section 34, of the Immigration and Asylum Act 1999, to a notice of liability to civil penalty issued under section 35, his remedy was to defend proceedings brought by the Home Secretary after the expiry of the time prescribed for payment of the penalty. For full details see the Times Law Report.
20 March - Housing Application Fraud - Bromley LBC is cracking down on re-housing application fraud following a recent case where Penge tenant, Omonigho Bibiana Fayehun, who claimed that she had been forced to leave her Jasmin Grove home, was found to be still living there. Bromley Magistrates' Court fined Fayehun £150 plus costs of £100.
Comment: Well done to Bromley. Not enough councils do sufficient work on housing fraud.
20 March - Salesman Fined £900 Over Scam - Brian Yarker, of Thornaby near Gateshead, forged customers' signatures on Hutchison Telecom agreements to increase his commission. Unfortunately three customers got a tad upset when the direct debits started coming out of their bank accounts. Yarker was fined £900 and £200 towards costs.
20 March - Benefit Fraud Inspectorate Report: Newcastle City Council - This is a second inspection for Newcastle by the Benefit Fraud Inspectorate. The first was in 1997 since then the council has improved. This time, the council had no backlogs despite a high caseload, workload and a very transient population. In fact the council had improved in almost every respect: Administration, verification, liaison and counter fraud work.
Comment: Newcastle has every reason to be pleased with this report. Even internal and district audit are working together. I sense a new song being penned by Lindesfarne as we speak, all about Chris Bull and his merry band.
20 March - Benefit Fraud Inspectorate Report: Sandwell Metropolitan Borough Council - This is a second report on Sandwell MBC. Whilst there was some backlogs they have vastly reduced since the previous inspection in 1999. Most of the Benefit Fraud Inspectorate's recommendations have been implemented, including prosecution policy and a training programme that has led to a large number of prosecutions. In fact the Benefit Fraud Inspectorate say Sandwell have the best performing fraud section of the 30 highest Local Authorities.
Comment: Another good report. On the whole these second inspections show that councils have generally improved. Sandwell should quite rightly feel proud.
20 March - Benefits Cheat Jailed - An excellent investigation by Surrey Heath BC's fraud team, Benefits Agency Investigation Service, Employment Service Officers and Surrey police has resulted in an £81k benefit fraudster being sent to prison for 22-months.
Comment: A good investigation that started with a VF visit which highlighted that the fraudster had a good income. The fraud had run for 8 years.
20 March - Fake Discs Sold to Council Exposed Computer Fraudsters - Sikander Qureshi of Stanmore, Middlesex, Shaheen Parveen of Kingsbury, London, and Zafor Ahmed of Forest Gate, London, were convicted of conspiracy to defraud Microsoft, over a two-year period. Their fraud came to light when they sold faulty computer disks to St Albans District Council. The three netted an estimated £15m by selling fake Microsoft software to customers who thought that they were paying for the real thing.
18 March - Despicable Conman Preyed On Old - Oliver Donegan of Galway, has been jailed for 4 years by Warwick Crown Court. He was for posing as a police officer or charity worker in order to trick his way into the homes of elderly people and steal cash and valuables from them.
18 March - Watchdog to Probe Mail Scam - Letters arriving from France from Nicole Delya have flooded into Scotland in the last week .from Nicole Delya in France. These sick letters warn that the recipient's future will be affected in a "fairly disturbing manner" unless Delya is sent £12.90 in the next 48 hours. The Advertising Standards Authority have launched an inquiry
17 March - Ex-Councillor Arrested - Derek Hoyle, who represented the Conservatives in Doncaster's Southern Parks Ward, has been the latest person to be arrested and interviewed in the long running operation Danum.
17 March - Jail For Greedy Manager Who Stole £100k - Stephen Pinchbeck, the general manager of the Harrogate Moat House Hotel, stole £100k from the hotel. He arranged for top acts, such as Michael Ball, to appear at the hotel but then left the Moat House to pick up the bill while he pocketed the profit. Pinchbeck was jailed for 12 months.
17 March - Police Examine Election Returns of Labour Candidates - Police have been called into to examine the returns of 11 candidates in last May's elections. The investigation follows allegations from independent councillor Sandra Birkinshaw who began her own investigation.
17 March - Tycoon Bankrupt - Stephen Hincliffe, who was jailed for 5 years for fraud and corruption, has now been made bankrupt over unpaid court costs following a petition by the DTI.
16 March - Officers Bitten In Illegal Minicabs Blitz - 200+ illegal mini-cabs were seized during a month-long police operation in the West End of London. During the operation a police constable and a Westminster council bailiff were attacked and bitten. One taxi driver was drunk and one of the cars was stolen. 70 cars were taken off the road as unroadworthy and illegal to drive.
15 March - Companies Count the Cost of £40bn Fraud - Organised crime rings are believed to be making around £40bn a year from telecomm fraud, according to figures compiled by the International Forum of Irregular Network Access (FIINA), an organisation consisting of fraud experts from the world's largest telecomm companies.
15 March - Police Warning Over Laura Play Park Appeal Scam - The Paisley Daily Express was the victim of a pair of conmen who posed as Express staff in order to persuade employees of local shops to give them money for the Express Laura Play Park Appeal. The appeal was launched in memory of 22- year- old Laura Donnelly who was murdered on July 1999. Police are investigating.
15 March - Totalise Plc v Motley Fool Ltd and Another
- An internet service provider was able to obtain an order requiring website operators to disclose the identity of the source of defamatory material posted by an anonymous contributor to their discussion boards. For full details see the Times Law Report.15 March - Welsh Traders Warned of Fax Scam - Trading Standards Officers in Monmouthshire are warning neighbourhood traders to be on the lookout for unsolicited faxes requesting information about local accommodation and the local area. The scam is common enough and this is a recognised variation. You fax back to an expensive 0700 number and paying the premium rate but and getting nothing in return.
15 March - Yard Probe Million Pound Fraud at Hackney - Another investigation has been started by Scotland Yard into allegations that thousand of pounds worth of Housing Benefit was redirected into to bogus bank accounts set up in the names of genuine council tenants. The police believe this scam has been going on for years.
Comment: This is bad news for Hackney.
14 March - 2001 Rall v Hume - It was necessary in the interests of proper case management and the avoidance of wasted court time that a defendant, who proposed to use a film or video recording to attack a claimant's case; and who was therefore subject to all the rules as to the disclosure and inspection of documents contained in Part 31 of the Civil Procedure Rules, aired the matter with the judge managing the case at the first practicable opportunity. For full details see the Times Law Report.
14 March - Butcher is Fined £1k for Rump Steak Scam - Butcher Terrence Hawker, was fined £1,000 after pleading guilty to selling low grade meat as rump steak at Dorchester market.
Comment: Another good investigation by Dorset County Council's Trading Standards Department
14 March - Commission Refers Conviction Of De Courcy To Court Of Appeal - The Criminal Cases Review Commission has referred the conviction of Kenneth Hugh de Courcy (deceased 1999) to the Court of Appeal. De Courcy was convicted of 8 counts of forgery, 2 counts of perjury and 1 count of fraud on 13 December 1963 and sentenced to 7 years imprisonment.
14 March - Ex-Police Officers Guilty of Fraud - Burgh Heath, Epsom couple Anne O'Grady, who used to work for the British Transport Police, and her husband Eugene, who was a special constable, conned their tenants out of thousands of pounds. The Epsom couple O'Grady's ran Portland Property Management Services, which used was to rent out a property on behalf of a landlord but then they created fake identities using the tenant's surname which were used to plunder the tenant's account years after he left the property. to create a character to plunder the tenant's accounts years after he left the property. Anne O'Grady also opened accounts under the the tenant's name and that of a fake spouse. Both were jailed for two years each.
14 March - Fraud Probe at Law Firm - The SFO is undertaking an investigation with West Yorkshire Police into Bradford solicitor T I Clough. The Law Society suspended the firm's operation in December 2000. Meanwhile the Office for the Supervision of Solicitors is also investigating the practice.
14 March - Fraud Squad called into Investigate E-District - Financial investigators and police are to investigate the business dealings of AIM-listed international online company E-District.
14 March - Gang Quizzed Over Huge Benefits Scam - The Benefits Agency Investigative Service (BAIS) and police have arrested 7 men and a woman in North-East and South London, who they believe to be operating a million pound benefit fraud ring. Hundreds of forged and counterfeit cheques along with drugs, benefit books and £30k in cash were recovered from the addresses.
Comment: We look forward to seeing the results of this investigation.
14 March - JP Accused of Fraud - John Parry, Mansfield magistrate, is accused of 21 charges of false accounting and fraud. However, as Parry is suffering from cancer it is doubtful that he will ever stand trial for the offences.
13 March - DSS Adverts "Encourage Benefit Fraud" - According to the Daily Telegraph an official study has shown that the new "Targeting Fraud" advertising campaign by the DSS may encourage benefit fraud because they show how easy it is to do it. It also says that the adverts are unlikely to encourage anyone into reporting suspected benefit cheats. . David Willetts, Shadow Social Security Secretary, said "the Government should rethink the campaign". It was an "own goal".
Comment: This is very interesting. I thought that the newspaper advert was very good but I did wonder about the TV spots. So I conducted a straw poll. My brother said that had he realised that it was so easy he might have given it go. I think that the problem here is the TV spots are quite modern in their approach but the message that it wants to get across is quite old fashioned. The article a couple of weeks ago, which showed that most people would not commit tax fraud was based on the hard publicity from the Inland Revenue which suggested that it was successful at catching people and they would be prosecuted. I suspect that this is the weakness in the TV spots, but not in the newspaper adverts. But it is early days yet perhaps the DSS are going to follow the route of the Gold Blend couple and the TV spots will turn into a little soap opera where the fraudsters finally get their comeuppance and the actors end up on Buffy the Vampire Slayer.
11 March - Councillors Guilty of UK's Biggest Electoral Fraud
- As if Hackney LBC did not have enough problems already, two if its councillors, Isaac Lieberman and Zev Liebowitz, are facing imprisonment after being convicted of forgery and conspiracy by Wood Green Crown Court. Lieberman, a school administrator and Hackney Liberal councillor, and Liebowitz, a childcare worker and conservative councillor, joined together to fraudulently increase the number of proxy votes to ensure that Lieberman was elected to the council in 1998. They tricked people into casting proxy votes for the LibDems and created non-existent voters at derelict and empty houses.Comment: Despite being a Conservative, Liebowitz simply wanted to see his friend elected and it seemed to work, since in that year Labour won 29 seats whilst the LibDems and Tories won 31 each. They actually tricked pensioners into signing away their proxy votes by getting them to sign a form, supposed to be a petition about refuse collection. The pair arranged for 88 under-age or non-UK students at a Talmudic college to vote, whilst 84 students voted at the Mesifta College despite it only having beds for 30 students. Sentencing will take place on 6 April.
11 March - Loyalists Behind Counterfeit Scam - The Guarda have accused
Loyalist Johnny "Mad Dog" Adair of flooding the Republic of Ireland
with £1m worth of counterfeit CDs and videos. They claim that it is easy for
Adair to run his business from prison because he has a mobile phone.
10 March - Bosses Sent to Jail For Advice Centre Fraud - Jim King and Bill Jackson, managers of Sunderland's Ford and Pennywell Advice Centre, were jailed for 18 months and 9 months respectively for making a fraudulent application to the European Social Fund for £90k. They also defrauded the advice centre of nearly £4k which paid for King's holiday to the west coast of America. Jackson's brother Paul was found guilty of handling £300 stolen from the centre and was fined £600 and ordered to pay £400 towards costs.
10 March - Working Mum Ran up £11k DSS Fraud - Susan Vaughan of Chorley, pleaded guilty to not notifying the Benefits Agency that she had started work as a home care assistant in 1996 and continuing to claim IS, Housing Benefit and Council Tax Benefit. The fraud amounted to £11k and Vaughan has already agreed to repay at the rate of £25 per week. Sentence has been deferred for four weeks pending reports.
Comment: I'm not certain if this £11k is the full amount because I doubt that it includes the Housing Benefit not to mention the Council Tax Benefit that the council will have to recover. In any case it will take 8 ½ years to recover the £11k
9 March - Counterfeit Notes - Following recent reports that counterfeit Bank of Scotland £20 notes have been circulating in Glasgow, similar notes have now been found in Caithness. Police are looking for a white male in his mid 20s to mid 30s, between 5' 8" and 5' 10". He is clean-shaven and has a central Scotland accent. He was last seen wearing a black leather jacket, blue shirt and dark trousers.
9 March - Fraud Inquiry Adds to Hackney's Woes - Unfortunate Hackney LBC has now launched a fraud investigation into financial irregularities within their education department. Directory of Education, Max Caller, brought in investigators from their external auditors, following the discovery of false accounts and irregular cash transfers.
Comment: Never rains but it pours.
8 March - Benefit Fraud Inspectorate Report: Bradford City Council - The Benefit Fraud Inspectorate, in their report on Bradford City Council, said that they were very pleased by the number of high quality customer service initiatives. However, the inspectorate had concerns over backlogs. The reports states that fraud investigation and prosecution is very good
Comment: A good report for Bradford.
8 March - Benefit Fraud Inspectorate: Metropolitan Borough of Wirral - The Benefit Fraud Inspectorate's report on the Wirral recognises that the council produces a customer orientated benefits service but that their administration and counter fraud work has weaknesses, particularly within verification framework.
Comment: Like other recent reports, this report indicates that lack of resources is the main reason why some anti-fraud work is not what might have been expected. This is due in part to the lack of clarity about the future of benefit fraud and administration. Many have felt that local authorities were certain to lose their investigation powers and were also likely to lose administration too. Well, not so according to no lesser personage than Alastair Darling. At the recent IRRV benefits conference AD said that these functions would remain with local authorities. However a secondary problem exists which is that proper fraud investigation is expensive and some local authorities – especially those who do not want to do this kind of work – would rather take the subsidy hit and suddenly become born-again regulators, just before the arrival of the Benefit Fraud Inspectorate.
8 March - Guinness Trial Juror in Corruption Probe - The SFO are investigating charges of corruption levied against a juror in the 1986 Guinness trial. Most of the issues that make up the investigation are evidently little more than gossip and hearsay.
Comment: This trial runs and runs. I am sure that it has been going on longer than the Mousetrap.
5 March - Benefit Fraud Inspectorate Report: Liverpool City Council - The Benefit Fraud Inspectorate report on the performance of Liverpool City Council's administration of Housing Benefit and Council Tax Benefit, has damned the Council for having a number of weaknesses that have lead to "substantial" backlogs and delays. The report claims that the council has no real performance targets and little management information, however it also says that the council is committed to introduce changes to the service. The report identifies that the council has achieved some good anti-fraud work but that the effort has been wasted because it is not focused.
Comment: You cannot help but feel sorry for Liverpool. It probably has one of the largest caseloads in the country and they have been involved in some really excellent anti-fraud initiatives but the pressures must be huge and they must be very vulnerable to opportunistic and organised fraud.
5 March - Commission Refers Convictions Of Saunders, Ronson And Parnes To Court Of Appeal - The Criminal Cases Review Commission has referred the Guinness trial convictions of Mr Ernest Walter Saunders, Mr Gerald Maurice Ronson and Mr Anthony Keith Parnes to the Court of Appeal.
Comment: Off we go again.
5 March - Reformers Face A Long Haul - The Office of Fair Trading has started its assault on what they say is the restrictive practices of solicitors. This is the latest in a long run of attempts by governments to reform the legal profession.
3 March - Senior Buyer Jailed For Fraud Plot
- Mark Voegeli of Cromer,
and a senior print and stationery buyer for Anglian Windows, defrauded the
company of £78k through bribes and fraudulent contracts. He was jailed
for 18 months by Norwich Crown court. Brian Wilson of Rackheath and Castle
Colour Press, who bribed Voegeli in order to gain information that enabled his
company to win print contracts from Anglian Windows, was also jailed for 6
months for corruption.
1 March - Charity Fraud Called the Worst Kind of Deceit - Anthony Barratt,
a football club treasurer & secretary, defrauded money from a charity box
and prize draw designed to help brain injured children. Barratt produced
5,000 raffle tickets (selling at £1 per ticket) claiming the proceeds would go
to the charity, instead it was channelled to an account set up by Barratt in
another name. Barratt was found guilty but due to previous convictions for
dishonesty, magistrates have committed him for sentencing to the Crown Court.
1 March - Smoke Ring is Blown - Watchdog ICSTIS, are investigating an advert for a hotline run by a Birmingham company, which played a 3 minute message, at £1 per minute, explaining how diallers could buy 200 fags for £15 from a shop in Playa de las Americas in Tenerife.