HM REVENUE AND
CUSTOMS News Release (NW 18/09) issued by COI News Distribution
Service on 17 April 2009
Five people across
Merseyside have today been sentenced in relation to tax credit
fraud totalling over £150,000.
The court action follows an investigation by HM Revenue &
Customs (HMRC) into a number of unrelated false claims involving
understated household income, undeclared marriage or partnership
status, falsified working hours or income and inflated childcare costs.
His Honour Judge Holloway QC, presiding over all the sentencing
hearings today said: I have sentenced a number of similar cases
this week very few that had such levels of high dishonesty."
Nick Shaw, HMRC Criminal Investigations, commented:
"Tax credit fraud is theft of money from the public purse
and those falsely claiming tax credits face prosecution as in
these cases. We have robust and effective teams in place to
investigate and to ensure this illegal activity is detected. Those
involved in this form of crime are exploiting the tax credit
system for purely personal gain."
He added: "We recognise it is only a minority that are
exploiting the system but would encourage anyone with information
relating to tax credit fraud to call the Benefits Anti Fraud
Helpline on 0800 854 440 in total confidence."
Eight women in total were charged with fraudulently claiming Tax
Credits contrary to the Tax Credit Act 2002 following a series of
arrests across Merseyside in May 2008 and related investigations
over the following months. Five were sentenced today including:
* Laine Campbell aged 26 from Anfield, Liverpool was in fact
living with her partner during the majority of her claims for tax
credits and had falsified her claims over a five-year period.
Campbell should have declared her full household income throughout
the claim periods. Campbell fraudulently claimed over £30,642 in
tax credits by stating she lived alone. Campbell was sentenced to
six months in jail for each count of fraud (four in total) and the
sentences are to run concurrently.
* Katharine Rachel Gershman aged 28 of Prenton, Wirral was living
with her partner (later her husband) during her claims for tax
credits and had falsified claims over a five-year period.
Gershman should have declared her full household income throughout
the claim periods when in fact she fraudulently claimed £26,274 in
tax credits by claiming she lived alone. Gershman was sentenced to
six months in jail for each count of fraud (four in total) and the
sentences are to run concurrently.
* Kerry Lavery, aged 29, of Birkenhead, Wirral was living with
her partner prior to and partly during her claims for tax credits
and had falsified her household income for the claims over a
five-year period. Lavery should have declared her full household
income throughout the claim period but fraudulently claimed over
£26,036 by saying she lived alone and had separated from her
partner. Lavery was sentenced to six months in jail for each count
of fraud (four in total) and the sentences are to run concurrently.
* Julie Mead aged 43 of Liverpool was living with her husband
prior to and during the claims for tax credits and had falsified
her claims over a four-year period. Mead should have declared her
full household income throughout the claim periods but
fraudulently claimed over £20,426 by claiming to live alone. Mead
was sentenced to six months custodial suspended for two years and
must serve 150 hours of unpaid work for the community.
* Tracey Swindlehurst aged 40 of Birkenhead, Wirral was living
with her husband prior to and during her claims for tax credits
and had falsified her claims over a six-year period. Swindlehurst
should have declared her full household income throughout the
claim periods but fraudulently claimed £21,776 by claiming she
lived alone. Swindlehurst was sentenced to six months custodial
suspended for two years and must serve 150 hours of unpaid work
for the community.
One woman has already been sentenced - a 41-year old midwife from
Whiston in December 2008 after admitting her guilt in court in
October. She has paid back £30,519 and £500 court costs. Two
women, one from Greasby, Wirral and one from Speke, will appear
again in court next month. Further investigations into other
suspected tax credit fraudsters in Merseyside are ongoing. All the
five women sentenced today also face a confiscation hearing in
July 2009.
Tax Credits are based on total household income and are designed
to help lower income families and individuals. All Tax Credit
claims are subject to routine checks and claims are regularly
monitored for errors or fraudulent activity and flagged to
investigators as appropriate as in these cases.
This case was prosecuted by the Revenue and Customs Prosecution Office.
Note to Editors
1. If people suspect someone of a similar fraud they can report
it to the HM Revenue & Customs hotline 0800 59 5000 and if
they require assistance with their own tax credits they can ring
the Tax Credit Helpline 0845 300 3900 or visit the HMRC website at
http://www.hmrc.gov.uk for
more information.
2. The Revenue and Customs Prosecutions Office (RCPO) was created
by the Commissioners for Revenue and Customs Act 2005. An
independent prosecuting authority, RCPO reports directly to the
Attorney General and is responsible for prosecuting cases for HMRC
and SOCA. It prosecutes some of the largest drug and fraud cases
in the UK. For further information about RCPO, visit http://www.rcpo.gov.uk.
Issued by HM Revenue & Customs Press Office Team
Website
http://www.hmrc.gov.uk