By James Simons-
Britain’s largest benefit fraud gang has been brought to justice for orchestrating a sophisticated £50 million Universal Credit scam.
The scheme, which ran between October 2016 and May 2021, involved five Bulgarian nationals exploiting vulnerabilities within the benefit system to siphon off funds intended to support the most vulnerable members of society.
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Bulgarian nationals, Galina Nikolova, 38, Stoyan Stoyanov, 27, Tsvetka Todorova, 52, Gyunesh Ali, 33, and Patritsia Paneva, 26, pleaded guilty to fraud and money laundering for their involvement in a multi-million-pound scam on the benefit system.
The five members of an organised criminal gang falsely claimed more than £50 million in Universal Credit. Over a four-and-a-half-year period, between October 2016 and May 2021, the group made thousands of false claims for Universal Credit using either real people or hijacked identities, Wood Green Crown Court heard.
Their operation spanned across multiple years, during which they submitted thousands of false claims for Universal Credit, utilizing both real and hijacked identities.
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The modus operandi of the crime group was elaborate.
They employed an arsenal of forged documents, including counterfeit payslips, fictitious tenancy agreements, and fabricated letters from landlords, employers, and GPs to support their fraudulent claims.
Anytime they were rejected, they persisted until their claims were approved.
Investigators uncovered three “benefit factories” operating in London, serving as hubs for generating repeated false claims. These establishments purported to assist individuals in obtaining national insurance numbers and entitled benefits.
However, the funds were rerouted into the hands of the criminal network, laundered through bank transfers and cash withdrawals.
After years of investigation, the defendants were arrested in May 2021 following raids on their properties.
These raids uncovered incriminating evidence, including bundles of forged documents, cash hoards concealed in shopping bags and suitcases, luxury vehicles, and designer goods.
Despite attempts to evade justice, one of the defendants, Gyunesh Ali, fled to Bulgaria but was later extradited back to the UK to face trial in February 2023.
The Department for Work and Pensions (DWP), spearheading the investigation, presented compelling evidence including encrypted messages, CCTV footage, seized digital devices, and bank statements, compelling all defendants to plead guilty.
Ben Reid, Specialist Prosecutor for the CPS, emphasized the scale of the fraud, stating, “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.”
The collaboration between the CPS, DWP, and international partners facilitated the dismantling and successful prosecution of the crime group.
Following the convictions, efforts are underway to confiscate ill-gotten gains acquired through criminal activities. Mel Stride MP, Secretary of State for the Department for Work and Pensions, reiterated the government’s commitment to protecting taxpayers’ money and vowed to pursue those engaged in benefit fraud.
Stride emphasized, “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.”
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