Launderers in the news: August 2012

22 August 2012

Frauds involving cyber crime, cigarettes and cycling feature in this month's round-up of launderers hitting the headlines.

Two brothers convicted of £34 million tax fraud - Wolverhampton

Two brothers have been convicted of money laundering and sentenced to over five years' imprisonment for their part in a £34 million tax fraud. The conviction follows a five-year investigation by police. The two men were hired by a criminal gang who set up several payroll companies that provided services to construction firms. The payroll companies paid workers but did not pass PAYE deductions to HM Revenue & Customs. The brothers were paid around £2.4 million for working as 'protection' for the gang's leader, who was jailed for 17 years in a separate trial.

Cyber criminals jailed for multimillion pound credit card fraud - Gloucestershire

A man hacked into various computer systems to obtain credit card data, which he then sold on to criminals using a fake shopping website. He was also paid commission by criminals who used the website to sell card data they had stolen. The proceeds were laundered through various bank accounts and overseas money exchangers. The man had three accomplices, two of whom collected money from Western Union outlets on his behalf and one who received funds into a personal bank account. The total value of the fraud is believed to be almost £27 million. The man and one of his accomplices pleaded guilty to 12 counts of fraud, money laundering and computer misuse offences and were sentenced to over 4 years' imprisonment. The other two accomplices pleaded guilty to money laundering charges and received community service orders.

Ex-policeman convicted of money laundering - Hartlepool

A former policeman started an elaborate cigarette-smuggling operation in 2006. Along with accomplices, he hijacked the identities of legitimate companies that imported a variety of goods in order to smuggle illegal cigarettes into the UK to sell on the black market. He admitted laundering £2 million through a fake fish-tank business, but the total value of the fraud is estimated at £11 million. He was sentenced to six years in prison for money laundering, evading excise duty, possessing fraudulent documents and making false VAT claims.

Horse and carriage hire company boss jailed - Teesside

A Stockton businessman has been jailed following an investigation by HM Revenue & Customs. He admitted helping criminals, including mortgage fraudsters, to launder over £0.5m by putting it through his company's books to make it appear as though the criminals had paid for goods. The criminals were given fake invoices and the money was paid back to them at a later date. The man was sentenced to two years' imprisonment and disqualified from being a company director or receiver for five years.

'Boris bike' fraudsters jailed - North London

Two men who paid £42,000 of bogus refunds from London's cycle hire scheme to friends have been jailed. Both men were employed by Serco, which operates the scheme on behalf of Transport for London, and unlawfully paid refunds into the accounts of seven friends between September and December 2010. They were convicted of one count of fraud each and jailed for 15 months. The seven friends who received refunds all admitted one charge of money laundering and received suspended sentences plus supervision requirements, community orders or orders to do unpaid work.

Cage-fighting drug dealer jailed for money laundering - Burnley

A cage-fighter has been jailed for money laundering and conspiracy to supply cocaine. The man was the leader of an organised crime gang which mixed cocaine with other substances before passing it on to street dealers. He was jailed for 16 years for money laundering and conspiracy to supply cocaine, while the other 13 members of the gang were sentenced to a total of 67 years.

Bank business manager convicted for helping drugs gang launder cash - Sussex

A business manager who worked at a major UK bank has been jailed for four years after helping a drug-trafficking and property fraud gang to launder the proceeds of crime. The man set up multiple bank accounts for the gang and allowed them to withdraw large sums of money without reporting it to the authorities, taking a five per cent cut for each transaction he managed.