Fraud gang that falsely claimed record £50m of taxpayers’ cash convicted

Five members of a gang that falsely claimed more than £50 million in universal credit in the largest benefit fraud in England and Wales have been convicted.

Bundles of cash stuffed in shopping bags and suitcases, a luxury car and designer goods including watches, jackets, and glasses were found during a raid on their properties, the Crown Prosecution Service (CPS) said.

Bulgarians Galina Nikolova, 38, Stoyan Stoyanov, 27, Tsvetka Todorova, 52, Gyunesh Ali, 33, and Patritsia Paneva, 26, made thousands of false claims for benefits using real people or hijacked identities.

Claims were supported by an array of forged documents including fictitious tenancy agreements, counterfeit payslips and forged letters from landlords, employers, and GPs.

If claims were rejected, the fraudsters would try time and again until they were granted.

Investigators even discovered three “benefit factories” in London, the CPS said, claiming to help people get a national insurance number using “claim packs” containing forged and false documents.

But after applicants made their claims, they left them in the hands of the gang who laundered money through a number of different accounts.

All five members of the gang pleaded guilty to fraud and money laundering-related offences at Wood Green Crown Court for their part in the scam, the CPS said.

Over a four-and-a-half-year period between October 2016 and May 2021, the gang made thousands of false claims for universal credit using either real people or hijacked identities.

Following his release under investigation, one of the five defendants, Gyunesh Ali, fled the country to Bulgaria, but was successfully extradited back to the UK on February 25 2023, the CPS said.

All five defendants will appear for sentencing on May 28 2024.

Ben Reid, specialist prosecutor for the CPS, said: “This case is the largest benefit fraud prosecution ever brought to the courts in England and Wales.

“For a number of years, these defendants conspired to commit industrial-scale fraud against the universal credit system, costing the taxpayer more than £50 million.

“Submitting thousands of false claims, the organised criminals enriched themselves from Government funds designed to protect and help the most vulnerable people in our society.

“This was a complex and challenging case which required close and effective working between CPS prosecutors, the Department for Work and Pensions and our international partners in both Bulgaria and through the UK.”

Mel Stride, Secretary of State for the Department for Work and Pensions, said: “I am immensely proud of DWP investigators’ work, in collaboration with the Crown Prosecution Service, to take down this organised crime group.

“Today’s convictions underline our commitment to protecting taxpayers’ money and it is only right and fair that we bring to justice those stealing from the public purse.

“My message is simple – if you are committing benefit fraud, you are cheating the taxpayer, and we will catch you.”