Fraudsters jailed after £22m construction tax scam

Grant Prior 1 week ago
Share

Seven construction scammers been sentenced for their key role in a £22m fraud against the taxpayer.

The defendants were involved in setting up bogus payroll companies which pocketed VAT and Construction Industry Scheme (CIS) contributions rather than pass them on to HMRC

Daniel Newton, 38,  Philip Bailey, 36, Sean Dean, 41, Lee Hudson, 56, Sarah Gillard, 41, Bradley Mortimer, 39, and Kevin Ratcliffe, 43, were sentenced to nine years and four months imprisonment, six years and three months imprisonment, seven years imprisonment, five years imprisonment, two years imprisonment suspended, three years and six months imprisonment, and 27 months imprisonment, respectively for cheating the public revenue, money laundering related offences, acquiring criminal property and organised criminal gang activities.

The Crown Prosecution Service worked closely with Kent Police and HMRC to build a case for trial after unpaid VAT and CIS contributions were diverted to the bank accounts of the defendants.

The beneficiaries included the lead conspirators Bailey, Newton and Dean who were responsible for establishing, maintaining, and developing the scam. Ratcliffe was a customer company director who received ‘kickbacks’ in exchange for providing business to the core payroll company.

Hudson was an office worker who was conducting the day-to-day business which enabled these offences. Gillard and Mortimer functioned as cash couriers for money laundering for the illicit activities.

Julius Capon of the Crown Prosecution Service said: “These criminals stole £22m from the taxpayer. Fake payroll companies were created and operated by Bailey, Newton, Hudson, and Dean.

“Construction companies would permit these payroll companies to make VAT and Construction Industry Scheme (CIS) contributions to HMRC on behalf of their subcontractors.

“Instead of the VAT and CIS contributions being paid to HMRC, the defendants pocketed the monies themselves.

“The defendant Ratcliffe owned a construction firm which received cash ‘kickbacks’ for assisting in this illegal enterprise of cheating the revenue. The defendants Gillard (partner of Philip Bailey) and Mortimer laundered the proceeds through their bank accounts.

“The CPS has commenced proceeds of crime proceedings against the defendants to claw back the money they made from this illegal scheme.”

Ian Hackett, Operational Lead, in HMRC’s Fraud Investigation Service, said: “We have worked closely with Kent Police to dismantle this sophisticated and complex fraud.

“The tenacity and expertise of the investigators involved in this joint investigation has protected millions of pounds of taxpayers’ money, which is needed to fund our public services.”

Latest news

GRAHAM wins £100m deal after safety regulator approval

Dyecoats scheme in Leeds becomes one of first to receive Building Safety Act Gateway 2 green light
8 hours ago

Work on Labour’s new towns to start by 2029

More than 100 sites put forward for a dozen new town locations
2 minutes ago

Housing orders surge offers hope after 5.2% new work fall last year

Housing orders surged 24% in final quarter of 2024 as developers release schemes
12 hours ago

BAM Construction suffers £40m loss after Co-op Live setback

Civils business profit surges 24% to £80m
14 hours ago

Over 150 jobs axed as J S Wright goes under

Insolvency specialist FRP Advisory goes in at Birmingham M&E specialist
15 hours ago

Extra cash found to speed-up safety regulator

Government to spend extra £2m to clear backlog of high rise approvals
15 hours ago

Galliford Try lands £63m RAF accommodation deal

Work to start within months at RAF Digby in Lincolnshire
15 hours ago

Balfour Beatty wins Trent arched bridge job

Briton Fabricators will build the £13m bridge from prefabricated sections
14 hours ago

Goldbeck to build new £50m Cardiff County Hall

German-owned contractor vowing to be a "disrupter in the UK market"
24 hours ago

Laing O’Rourke chairman to step down

Ray O'Rourke to take over chair from Sir John Parker
2 days ago

Farrans lands Leeds Bradford Airport phase 2 upgrade

Contractor takes follow-on refurb job after terminal extension
1 day ago

ISG built Bristol housing block to be torn down

Contractor's collapse sinks Bristol flats remediation claim
2 days ago

RSK revenue nears £2bn as losses soar to £132m

Refinancing last summer puts group on course for more growth this year
2 days ago

Bridge design wind error adds £20m to construction costs

Completion of £148m Grantham Southern Relief Road delayed by a year
2 days ago

Rayner pledges extra £350m for social house building

More than 3,000 homes could be built with cash injection
2 days ago

City’s biggest retrofit tower scheme approved

Triple-fronted 70 Gracechurch Street building will rise to 33 storeys
2 days ago

Defibrillator saves worker’s life on Wates site

Machine operator saved after "dying" for 16 minutes on prison job
2 days ago

Funding deal for £125m Camden Roundhouse scheme

Developer Regal set to start 264-bed student scheme
3 days ago

Balfour leadership rejig to focus on three key growth sectors

Divisional CEO trio take lead roles for energy, defence and transport expansion
3 days ago

ABP bidders day for £150m Humber ports pipeline

Nine projects in the pipeline to support automotive and energy transition schemes
3 days ago

Hinkley Point C to create 3,000 jobs as work ramps up

Fitout surge to swell workforce to 15,000 in next 18 months
3 days ago

Hercules sells suction excavator division for £2.4m

Loss making arm sold by labour hire specialist
3 days ago

Foundations complete at HS2 Old Oak Common station

Station base completed using 76,000 cubic metres of concrete and 17,000 tonnes of reinforced steel
3 days ago

Bids invited for £175m consultancy framework

Fusion21 inviting consultants to join latest four-year deal
3 days ago

Regulator pledges to clear 122 project backlog by April

A third of applications failed to meet required standards says building safety regulator
4 days ago

Government opens bidding for new AI Growth Zones

Interest for sites in Scotland, Wales, the North East and North West
4 days ago

Vistry strikes deal for phase 3 of £1.2bn London estate rebuild

323-homes at giant Clapham Park scheme move to construction
4 days ago

Fire hits £31m student accommodation site

Blaze breaks out on Lancaster job where Bridgestone Construction is main contractor
5 days ago

Green light for £250m Salford data centre

Six acre plot to be transformed at Peel Waters site
4 days ago

Two in race for £269m HS2 people mover deal

Winner expected next year as hunt continues for infrastructure builder
4 days ago

Contractor services