Crime Solicitors

The director of a mobile phone company who was investigated by the Insolvency Service had been disqualified for 15 years, after being found guilty of fraudulent VAT evasion.

Mark Robert Cook – a director of mobile phone wholesaler Crouch Commodities Ltd, based in Braintree, Essex – has been disqualified by the High Court for 15 years for causing the company to participate in transactions which were connected with the fraudulent evasion of VAT.

Between April and July 2006, Cook caused Crouch Commodities Ltd to wrongfully claim the sum of £19,376,461 from HM Revenue and Customs (HMRC) for four input tax reclaims for the VAT period March to June 2006. The investigation found Cook either knew – or should have known – about such transactions.

Disqualification follows investigation by the Public Interest Unit – a specialist team of the Insolvency Service, whose involvement commenced with the winding up of the company for unpaid VAT owed to HMRC.

The investigation found that Crouch Commodities Limited participated in “missing trader fraud”, commonly known as “Carousel” fraud, in which large consignments of electrical or other small-item size, high-value goods are invoiced rapidly and repeatedly around trading chains, speeded up by movement on paper – with actual movement of goods only taking place as they enter or exit the UK.

Such missing trader fraud indicators included the rapid succession of same day trades without deliveries within the UK, involving goods sitting at a shared freight forwarder – as well as the common use of the same offshore bank and entering into payment arrangements involving third parties who were neither suppliers nor customers.

All traders banked with the First Curacao International Bank, which was shut down by the Netherlands Antilles authorities in September 2006 to prevent money laundering.

Commenting on this case, Anthony Hannon – Official Receiver in the Public Interest Unit – said:

“Crouch Commodities Ltd was involved in trading and making wrongful reclaims in a fraudulent VAT scheme, which had been costing the UK Exchequer significant amounts of money at the time the fraud was perpetrated.

“This is not a victimless crime – the main impact being on honest taxpayers and their families who, as a result, suffered the effects of funding shortages in healthcare, education and other frontline services.
“Regulatory changes, investigative action and legal proceedings have reduced the scale of this fraud from 2007 onwards.

“The Insolvency Service will not hesitate to use its enforcement powers to investigate and disqualify directors whose companies defraud the public purse.”

Duncan Lewis Fraud Lawyers

Duncan Lewis fraud lawyers can advise at any stage of a charge involving fraud and/or white collar crime, including charges relating to:

• Benefit fraud
• Boiler room scams
• Carousel fraud
• Company fraud
• Conveyancing fraud
• Credit card fraud
• Financial fraud
• Identity fraud
• Immigration fraud
• Insurance fraud
• Investment fraud
• Misrepresentation
• Mortgage fraud
• Motor insurance fraud
• Online fraud
• Passport/visa fraud
• Ponzi schemes
• Property fraud
• Tax and VAT evasion
• Ticketing fraud.

There are Duncan Lewis offices nationwide and in most major cities – and Duncan Lewis can attend interviews under caution with investigating and prosecuting authorities, such as local council fraud teams, SFO, FCA, The Insolvency Service, police, City of London Police, HMRC and DWP.

Duncan Lewis can also advise on confiscation orders under the Proceeds of Crime Act (POCA).

For expert legal advice on all fraud charges, call Duncan Lewis fraud lawyers on 0333 772 0409.

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