Cheat runs bed and breakfast business from council flat

A Bury man who fraudulently ran a bed and breakfast business from his Council house while also claiming Pension Credit and Housing Benefit, was convicted at Bury Magistrates Court on 9 August 2016.

Mr Anthony Whewell of Moss Row, Bury pleaded guilty to unlawful sub-letting of his secure tenancy and to fraud by false representation. He was sentenced to a 12 month Community Order with the requirement to undertake 100 hours of unpaid work. An Unlawful Profit Order in the sum of £1,000 was made and he was ordered to pay £750 towards prosecution costs and a £60 victim surcharge. He also received an 18 month suspended possession order on his council house in the civil courts on condition of good behaviour.

Mr Whewell’s illicit business was discovered through joint working between Bury Council’s newly formed Corporate Fraud Team and Six Town Housing. Mr Whewell used Airbnb Inc to advertise the Council property online as a “former local authority flat” and described it as a ‘friendly B & B at my place in Bury’.Whewell charged up to £30 per night, £200 per week or £700 per month for rental of the flat and admitted during an interview with Investigators that he had initially advertised his flat with a hot tub until a customer had complained that it was really just a bath.Mr Whewell used the profits from his fraudulent business to buy a luxury Hifi costing over £2000 and to pay into his private pension fund which grew by thousands of pounds.

Councillor Jane Lewis, Deputy Leader and Cabinet member for Finance and Human Resources said:“We are always willing to assist people in genuine needandhave been extremely pro-active in recent years to ensurethose who are entitled to benefits don’t miss out.We will not tolerate abuse of the system, and willtake robust action against those who do abuse it.

“We want to make it perfectly clear that if people de-fraud the system they will be caught and dealt with..There are approx 8000 people on our housing waiting list, and it is absolutely imperative that social housing properties go to the people who need them most. Our new Fraud Team are also looking at housing tenancy fraud - so cheats and fraudsters beware.”

This is the first prosecution case for Bury Council’s Corporate Fraud Team which already has a number of cases ongoing and hopes to bring more fraudsters to justice in the near future. It is also the Council’s first conviction under the Prevention of Social Housing Fraud Act 2013.

If you suspect someone of housing or any other type of fraud against Bury Council report it in confidence, with as many details as possible, at www.bury.gov.uk/fraud or contact The Corporate Fraud Team on 0161 253 7437 or email fraud@bury.gov.uk.