HM Revenue & Customs (National): Yorkshire gang jailed in £12m VAT scam

Four members of a gang who helped orchestrate a £12million VAT fraud have been handed prison sentences today; just a week after the fraud’s ringleader was jailed for ten years.

47 year old Wayne Murden from Walsall; Steven Hague, 49 and Peter Green, 46 from Bradford and Russell Bakewell, 47 from Staffordshire, all pleaded guilty, admitting they had created and operated an illegal network of companies, which they used to steal the VAT.

Two other members of the gang, Reginald Turner, 62 along with his daughter 32 year-old mother of two Tammy Copson from Walsall also pleaded guilty to the offences and will be sentenced at a later hearing.

These six, along with 40-year old Jayne Mitchell from Selby in North Yorkshire, were caught after HM Revenue & Customs (HMRC) began investigations into the accounts of a number of the companies they controlled.

HMRC investigators discovered the gang had imported more than 7,000 new vehicles, which they sold on through a complex web of fake companies. The cars were imported VAT free, passed through a chain of fake companies, and eventually sold on to unsuspecting car supermarkets and dealerships across the UK, but with many of the fake companies disappearing without paying the VAT due on the sales.

Peter Hollier, Regional Director, Criminal Investigation for HMRC said:

“Although registered as Senior Executives within the network of fake companies, these people were not entrepreneurs or ruthless business people. They were recruited into a criminal operation that would make them a substantial profit - an opportunity they willingly accepted - but they are now facing the harsh reality of becoming involved in this crime.

“Each one of them knew exactly what they were getting into and they all played an active role in helping Jayne Mitchell becoming a very rich woman at the expense of the taxpayer. Although these individuals were able to create ‘comfortable’ lifestyles as a result of this fraud, some of them claiming benefits, none of them enjoyed the luxuries afforded to Mitchell. Today’s sentences will serve as a deterrent to anyone who is tempted to defraud the tax system for personal gain.”

The four appeared in front of His Honour Judge Durham Hall at Bradford Crown Court today who commented:

“You have pleaded guilty to a significant and substantial attempt to cheat the public revenue. You did not fall into this scheme by accident and you are not the sort of people who do something for nothing”

The gang developed a complicated web of businesses; setting up fake companies, producing invoices for non-existent transactions and operating a cash network that saw hundreds of thousands of pounds being transferred between their personal and business bank accounts siphoning off the criminal profits.

The contrived chain of companies turned over £80 million in two years. One company received more than £65 million in bank credits whilst another raised invoices for over £4 million in just four months. At the height of the fraud one of the companies imported and sold more than 1,200 cars in just one month.

Notes to editors

1. Personal Details:

Jayne Louise Mitchell, DOB 18.9.70, of 154 Wilsden Road, Allerton, BD15 9ADD
Was arrested 23.5.06 and charged 29.9.08
Sentence: 10 year imprisonment.

Tammy Copson, DOB 6.11.72, of 89 Rowley Street, Walsall, WS1 2AZ
Was arrested 23.2.06 and charged 3.10.08.
Will be sentenced at a later date.

Peter Green, DOB 28.12.64, of 18 Moorside, Cleckheaton, BD19 6JD
Was arrested 9.2.06 and charged 30.9.08
Sentence: 21 months custodial sentence and banned from being a company director for four years.

Steven Hague, DOB 04.11.61, of 400 Beacon Road, Bradford, BD6 3DJ
Was arrested 8.1.08 and charged 1.10.08.
Sentence: 21 months custodial sentence and banned from being a company director for four years

Russell Joseph Bakewell, DOB 08.4.63, of 517 Walnall Road, Landywood, Gt Wyrley, WS6 6AE
Was arrested 9.2.06 and charged 1.10.08.
Sentence: 30 months custodial sentenced and banned from being a company director for 4 years.

Reginald Turner, DOB 21.11.48, of 56 Broadway Well, Walsall, WS1 4DZ
Was arrested 23.2.06 and charged 3.10.08.
Sentence: Will be sentenced at a later date.

Wayne Murden, DOB 1.6.63, of 90 Abelwell Street, Walsall, WS1 3EU
Was arrested 10.2.06 and charged 3.10.08.
Sentence: 12 months custodial sentence suspended for 2 year and banned from being a company director for 4 years.

2. A selection of the key companies involved in the fraud:

Ladyship Associates Ltd 
Registered addresses: 
The Yard, Ladyship Mills,Old Lane, Halifax,
Hillside Works, Whitehall, Hunsworth, and
Hargreave head, Brighouse and Denholme, Gate Road, Halifax.
Director: Peter Green
Ladyship Associates Ltd traded from 30.1.03 to 15.3.03, supplying 310 vehicles at a cost of £3, 404,328.80 including VAT of £596,139.33.

RB Contractors
Registered address
Arc business centre, Park Square East, Leeds. 
Director: Russell Bakewell
RB Contractors traded from 16.6.03 to 07.10.03 supplying 970 cars to AHL at a cost of £9,015,375 .01 including VAT of £1,554,672.86. Bakewell requested the company to be struck of the companies register in February 2004.

RCS Services Ltd 
Registered address: 
Metro House, Pepper road, Hunslet, Leeds.
Director: Russell Bakewell
RCS Services Ltd traded from 08.9.03 to 18.1.04 supplying 2,713 cars to AHL at a cost of £25,213,772.64 including VAT of £4,404,105.60.

Southedge Developments Ltd 
Registered addresses: 
Southedge Cottage, Brighouse Road, and
11A Common Road, Bradford
Director: Stephen Hague 
Southedge Developments Ltd traded from 1.3.04 to 16.8.04 supplying 1,626 cars to AHL at a cost of £14,469,573.95 including VAT of £2,532,175.44.

WFM Import Export Ltd 
Registered address: 
163 Pargeter Street, Walsall
Director: Reginald Turner
Company secretary: Tammy Copson
WFM Import Export Ltd supplied 1,243 vehicles at a cost of £13,936,237 including VAT of £2,438,841.

Murway Automotive Sales and Leasing 
Registered address: 
86c Wednesbury Road, Walsall
Director: Wayne Murden
Murway Automotive Sales and Leasing issued invoices for £3,197,560.64 including VAT of £559,573.13.

The Automotive Hire and Leasing Co Ltd 
Registered Addresses: 
Leigh House, Varley Street, Pudsey,
7 Barker Street, Shrewsbury, and
No6 Eclipse, Ashton Lodge Farm, Northants.
Director: Jayne Mitchell
Company Secretary: Jayne Mitchell
The Automotive Hire and Leasing Co Ltd traded from December 2002 to December 2005. AHL issued invoices to car traders in excess of £60 million with VAT of £9 million.

3. Former Secretary 40 year-old Jayne Mitchell from Selby, North Yorkshire was sentenced to ten years at Leeds Crown Court on Friday 26 November for her role in this fraud. Mitchell was the key organiser and the main benefactor, living a luxurious lifestyle of fast cars, palatial homes and designer shopping sprees from her involvement in the scam.

4. Jayne Mitchell had been made bankrupt by HMRC during the course of the investigation and the luxurious home she had purchased and developed in Belgium has been repossessed by the mortgagor and is expected to be sold at auction.

5. The investigation involved the execution of search warrants across Europe, the extradition of Jayne Mitchell under a European Arrest Warrant and the gathering of evidence from as far away as New Zealand.

6. Photographs of the defendants as well as photographs of the properties/registered business addresses are available upon request.

7. HMRC’s Peter Hollier will be available for interviews on this case. For more information or to request an interview please contact Michelle Potts on 0778 552 5772.

8. If you receive this release via text or e-mail photographs are available athttp://nds.coi.gov.uk/Content/Detail.aspx?ReleaseID=416907&NewsAreaID=2&ClientID=257

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