Photographs of the fraudsters are available on request from the press office. (Where available, it is indicated in the individual summaries below).
North West fraudsters
John Paul Wright (born 10/09/63) of Bridge Lane, Appleton, Warrington, Cheshire was found guilty (by whole jury) on 12 August 2009 at trial. He was sentenced to six years on 21 October 2009. Wright was employed in light haulage and building work but in reality was one of the main players behind the registration of several companies used in the VAT fraud trading in animal feed supplies and children’s clothes. He used a hijacked identity at times and operated a number of the bogus companies in conjunction with Gary Edgington and Peter Wood and possibly others. Photograph of Wright available. Upon sentencing Wright, HH Judge George QC said: “you took a leading and organisational role in this conspiracy, you took control of monies in excess of £214,000 and you were linked to seven entities”
Peter Wood (born 21/03/57) of Dalton Gardens, Urmston, Manchester pleaded guilty before the trial began and was sentenced to four years eight months today. Wood was a self-employed financial advisor who specialised in tax advice (he told investigators in interviews that he had previously worked for the Inland Revenue in the 1970s and 80s). Wood helped with the purchase of properties for the gang and in some circumstances completed false invoices in the fraud – he was identified in court as one of the main players who had much more than just an accountancy role. Photograph of Wood available. Upon sentencing Wood, HH Judge George QC said: “you used your professional expertise in 2003-2004 and veneer to create and form entities, you used a paper trail to cover up your guilty knowledge and you had a leading and organisational role in the conspiracy. You are linked to six entities and had over £700,000 in your control.”
Michael North (born 13/10/39) of Meadow Lane, Disley, Stockport was found guilty (by majority verdict) 12 August 2009 and was sentenced to 15 months today. North another financial advisor operated from premises on Union Road, New Mills, High Peak in Derbyshire and he also helped with the purchase of properties for gang members and in some circumstances completed false invoices. North had had close links to the O’Briens in Scotland. In court HH Judge George commented if North had been younger he would have received 24 months in jail. Upon sentencing North, HH Judge George QC said: “you are a thoroughly dishonest man, a man who could not be trusted, you were heavily involved with Daniel O’Brien. You had a very much hands on role and you were actively involved and had little regards or thought for probity.”
Neil Robert Banks (born 11/12/84) of South West Avenue, Bollington, Macclesfield, Cheshire pleaded guilty before the trial began and was sentenced to 240 unpaid community service today. Banks was a close family friend of the O’Briens (who will be sentenced separately) and in the case he was registered as the sole proprietor of a ‘fruit and veg’ company linked to the fraud (supposedly trading in Scotland). Photograph of Banks available. Upon sentencing Banks, HH Judge George QC said: “you had £86,000 paid into your bank account and clearly you were in the thralls of the O’Brien family”
Gary John Edgington (born 03/01/54) of Water Street, Bollington, Cheshire pleaded guilty before the trial began and was sentenced to four years today. He was also a self-employed financial advisor who assisted with the purchase of properties and in some circumstances completed false invoices – another seen as a main player in the VAT fraud who is understood to have received large amounts of money from the gang’s activities. Photograph of Edgington available. Upon sentecing Edgington, HH Judge George QC said: “you had a leading and organisational role to the latter end of the conspiracy. You are linked to four entities and had £237,000 in your control. Evidence showed you had close liaison with Peter Wood and Emma Vasey. You were involved in the conspiracy in a major way.”
North East fraudster
Emma Haughan (nee Vasey) (born 01//07/74) of Sulgrave Road, Washington, Tyne and Wear was found guilty (by majority verdict) on 12 August 2009 and was sentenced to 18 months in jail today. Emma was shown in court to have created false invoices to support the claims which were sent to HMRC. She was paid directly from the bank accounts receiving the VAT repayments. She worked with / for / and had close links to Wright, Wood and Edgington three of the main players in the fraud conspiracy. The company in the fraud she was ‘working’ for ‘traded’ mainly in the north west of England. Photograph of Haughan available. Upon sentencing Haughan, HH Judge George QC said: "you are a person of considerable experience of running an office and in the transport industry, you made these skills available to Gary Edgington, John Wright and Peter Wood and put them to use in the conspiracy. You were a trusted confidant and helpmate and ‘beck and call’ girl linked to six entities you are not at the top but not far behind [in this fraud]."
Scottish fraudsters
Diane Bellingham (now Milne) (born 01/05/65) of Mid Street, Keith,, Scotland pleaded guilty before the trial began and was sentenced to 12 months today. Diane was the wife of Edward Bellingham at time of their arrests and she was registered as the sole proprietor of an animal feed company linked to the fraud (supposedly trading in Scotland). Diane also set up other bogus companies with her, then, husband. Edward is to be sentenced separately. Upon sentencing Bellingham, HH Judge George QC said: “your former husband was threatening and manipulative towards you and your children but you had a choice to be party to it. You were part of the mechanics by writing letters and compiling documents.”
George Alexander Duncan (born 02/02/64) of Cedar Bungalow, Drumnagoroch, Huntly, Scotland pleaded guilty before trial began and was sentenced to 32 months jail today. Duncan was registered as the sole proprietor of an animal feed company linked to the fraud (supposedly trading in Leicestershire) – yet another bogus business. Upon sentencing Duncan, HH Judge George QC said: – “no doubt you played an active role in the conspiracy in five if not six of the entities.”
In addition to Edward Bellingham, two others, Daniel and Marie O’Brien of Rainbow Cottage, Aultmore, Keith, Aberdeenshire Scotland, will be sentenced separately.
Some of the Scottish individuals were supposedly trading in Derbyshire and Leicestershire, and it was part of the whole gang’s tactic to trade in and register for VAT in different areas from their home locations deliberately in an attempt to disguise the fraud and their connections in the conspiracy. But investigators tracked them down despite their attempts to evade visits from officials and keep a geographical spread in the fraud.
The gang used the fraud money to invest in property portfolios and fund their lifestyles. The total VAT fraud amounted to about £1.9million and those jailed now face confiscation hearings to recover monies and assets involved.
All the individuals were charged with conspiracy to cheat the public purse.
To report information related to fraud the public can contact the Customs Hotline on 0800 59 5000 or email customs.hotline@hmrc.gsi.gov.uk.
Issued by HM Revenue & Customs Press Office
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