Gang jailed for £6m construction tax scam

Grant Prior 14 years ago
Share

Six members of an Eastern European gang who stole £6m in a construction tax fraud and spent the proceeds on exotic holidays, luxury houses and cosmetic surgery have been jailed at Croydon Crown Court for a total of 33 years.

The ringleaders of the gang, married couple Youri Khomitch and Victoria Chambers, ran a string of companies offering accountancy services for Eastern European building workers.

They submitted over 3000 fraudulent self assessment tax returns over a four year period, for both fictitious people and individuals whose identities had been hijacked.

Khomitch, 36, and Chambers, 37, used the cash to buy a luxury home in a gated community in Kent where they fitted flat-screen TVs in every room and installed an en-suite sauna and outdoor hot tub.

They also bought a string of properties worth almost £2m across London and Kent. They enjoyed expensive holidays to Japan, Dubai, New York and Thailand. Chambers spent thousands of pounds on expensive gold and diamond jewellery and a breast enlargement operation.

The fraudster couple also sent their eldest children to a private school. When they were arrested, HMRC officers found over £130,000 in cash and £380,000 of payable orders from HMRC.

The fraudulent enterprise was started by Komitch and Vjacheslav Dostenko, a Belarussian, in 2004. They fell out in 2005 and Dostenko was joined by Roman Kuznetsov, a convicted Russian cigarette smuggler.

They set up a bogus recruitment company in Southwark and lured unsuspecting eastern European construction workers to their offices on the false promise of lucrative work.

Once there, the fraudsters took their identity documents which they then used without their knowledge to submit hundreds of false repayment returns

Some of the bogus firms were set up by Alexander Sokolovskiy, a Russian who specialised in false identities and was described in court as the “bank man”.

He set up fraudulent companies which the rest of the gang used as a cover for the fraud, and used fake identities to open the bank accounts that were used to receive the illegal rebates.

The final fraudster was Oleksandra Hawkins who acted as company secretary for two of the companies used to commit the fraud.

Peter Hollier, Assistant Director, Criminal Investigation for HMRC said: “This was an organised criminal attack on the public purse.

“This gang stole identities and exploited innocent citizens with no regard for the consequences – they were solely motivated by greed. Tax fraud is not a victimless crime – it takes money away from vital public services, and HMRC is determined to make the perpetrators of these crimes face the full force of the law.”

The gang members are currently subject of a restraint order, freezing assets of over £2 million. Confiscation proceedings are underway.


Latest news

Network Rail scales back Liverpool Street station scheme

Architect changed and developer Sellar dropped as £1.5bn original plan scrapped
51 mins ago

Muse JVs with pension fund insurer to build 3,000 homes

New Habiko business will build affordable low carbon, rental homes
2 hours ago

£1.3bn revamp plan for South London shopping centre

Landsec plans 1,700 homes at Lewisham shopping complex site
2 hours ago

Network Plus names new chief executive

Kevin Fowlie steps up to succeed founder Dan Holland
26 mins ago

TanRo lands latest Clowes business park

Groundworks due to start in new year at 31-acre Harrier Park site
1 hour ago

New consultant buys M&E specialist TACE

Contollo Group has ambitious growth plans over next five years
41 mins ago

Skanska signs £197m deal for Mayfair offices job

South Molton job consists of two big office buildings
1 day ago

Cost of fixing unsafe cladding soars to over £16bn

Watchdog urges new 'hard target date' to complete all recladding works
1 day ago

Scottish Water opens bidding on £800m framework

Innovative ceramic membrane water treatment works programme
1 day ago

Carbon capture concrete hits London sites

Neustark and Aggregate Industries launch new technology to UK market
1 day ago

Six win £300m cladding retrofit deal

Major social landlord Riverside Group to reclad 22 towers
1 day ago

Winchmore lands brickwork package on Graham £80m academy

Alkerden Academy is one of the largest schools to be built in the region
1 day ago

Construction firms blast “true cost of Budget”

Firms fear tax hikes will lead to reduced hours and job cuts for staff
4 days ago

Steel bridge specialist sold to staff

Nusteel Structures Group becomes industry's latest Employee Owned Trust
4 days ago

Ex-Lendlease chief to lead Euston housing regeneration

Bek Seeley to head Euston Housing Delivery Group
4 days ago

Ardmore lands Kensington hotel revamp

Contractor to transform former Kensington Holiday Inn
4 days ago

RED wins £35m brace of projects in Bristol

Works include student halls and major facade fire safety remediation
4 days ago

Wates starts £300m Gartree super prison job

Early works start on 1,700-prison place job next to existing prison
5 days ago

Five road schemes worth £1.3bn axed

Still no decision on £1.5bn A66 upgrade or £9bn Lower Thames Crossing
5 days ago

Budget: Chancellor to fund HS2 tunnels to Euston

Schools and hospitals get extra £1.85bn cash injection to tackle work backlog
6 days ago

Skills card changes will mean fewer labourers

CSCS wants to cut the numbers with 500,000 labourer cards currently in circulation
5 days ago

Wates hires former ISG fit-out chief to lead new team

Lee Phillips to head up new London office fit-out arm
6 days ago

Major London offices to student rooms scheme approved

65 Fleet Street office block to be converted to 850-student rooms
5 days ago

M Group Services buys MEICA contractor BGEN

Warrington-based engineering contractor employs 1500 staff
5 days ago

VINCI Construction swoops for FM Conway

Conway family sells £580m turnover Kent-based highways contractor
6 days ago

United Living bolts on property upkeep firm Pilon

Deal to buy £40m turnover social housing property services contractor
6 days ago

Sheffield facade specialist bought by Swedish firm

Building envelope giant Fasadgruppen makes first UK acquisition
6 days ago

Nexus buys Coleman Construction & Utilities for £5.4m

Nexus moves into civils with acquisition of East Sussex contractor
6 days ago

Councils get £68m to clear brownfield sites

Site renovation work will clear way for 5,200 new homes
6 days ago

Private investor buys Midlands contractor MCS

Deal values £100m revenue building contractor at £22m
6 days ago

Contractor services