Bulgarians pocket £50m from taxpayer in Britain’s biggest benefits fraud
A gang has been convicted of Britain’s largest 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 scam on the benefit system.
The five members of an organised criminal gang falsely claimed more than £50 million in Universal Credit. Over a four-and-a-half-year period, between October 2016 and May 2021, the group made thousands of false claims for Universal Credit using either real people or hijacked identities, Wood Green Crown Court heard.
These claims were supported by an array of forged documents, including fictitious tenancy agreements, counterfeit payslips, and forged letters from landlords, employers and GPs. If the claims were rejected, the fraudsters would try again until they were granted.
The investigation identified three “benefit factories” in London from which repeated false claims for benefits originated.
Alongside fraudulent claims from fake IDs, the businesses claimed they could assist people with obtaining a National Insurance number and benefits to which they were entitled.
However, it was found that once the benefits claim was made, the money that followed was left in the hands of the organised crime group.
The money gained from these fraudulent claims was then laundered and withdrawn in cash, the court heard.
The defendants were first arrested on May 5 2021 and several properties were searched.
During these searches, hundreds of “claim packs” containing forged and false documents were found and seized, as well as bundles of cash stuffed in shopping bags and suitcases, a high-end car and designer goods including watches, jackets and glasses.
Following his release under investigation, one of the five defendants, Ali, fled the country to Bulgaria but he was extradited back to the UK on Feb 25 2023 to face justice.
When faced with the large amount of incriminating evidence which included encrypted messages, CCTV footage, forged documents, seized digital devices and bank statements, the defendants eventually all pleaded guilty.
Last month it was revealed that Universal Credit has cost taxpayers £11 billion in fraud in the past two years.
Losses – which are predominantly caused by fraud and error – were last year still above pre-pandemic levels at £5.5 billion, according to the National Audit Office (NAO).
Speaking after the case, Ben Reid, specialist prosecutor for the CPS, said: “This case is the largest benefit fraud prosecution ever brought to the courts in England and Wales.
“For a number of years, these defendants conspired to commit industrial-scale fraud against the Universal Credit system, costing the taxpayer more than £50 million.
“Submitting thousands of false claims, the organised criminals enriched themselves from government funds designed to protect and help the most vulnerable people 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 both Bulgaria and through the UK desk at Eurojust, to dismantle and successfully prosecute the organised crime group. The guilty pleas entered by all five defendants reflect the strength of the evidence against them.
“The CPS Proceeds of Crime Division and DWP will now pursue confiscation proceedings against the defendants, to remove from them any available criminal benefit from this enterprise.”
Mel Stride , the Work and Pensions Secretary, said: “I am immensely proud of DWP investigators’ work, in collaboration with the Crown Prosecution Service, to take down this organised crime group.
“Today’s convictions underline our commitment to protecting taxpayers’ money and it is only right and fair that we bring to justice those stealing from the public purse. My message is simple - if you are committing benefit fraud, you are cheating the taxpayer, and we will catch you.”
All five defendants will appear for sentencing on May 28.
