Businessmen jailed for £145k VAT fraud and money laundering
Two businessmen have been jailed for a total of eight years and seven months after stealing £145,000 in VAT and laundering money for individuals who are in prison for a £2.6m tax fraud
24 Apr 2018
Andrew Baddeley and Douglas Brown both ran IT recycling businesses and used their company accounts to launder money for a 23-man gang who were jailed for more than 54 years in 2016 over a £2.6m tax fraud.
HMRC discovered that the two men moved £420,774 of criminal cash through their business accounts along with Baddeley’s father Peter.
The pair also claimed to repair computer monitors before selling them to customers in Africa. But HMRC found it was all a scam to steal VAT repayments with each stage of the transaction chain backed up with fake documents.
Brown and Baddeley claimed to have spent more than £1mon computer monitors from two IT recycling companies before re-selling the goods to companies in Africa. The pair then reclaimed the VAT they supposedly paid on the recycled goods.
But checks with the companies and shipping agents revealed the purchases were fake and the men had created false paperwork.
Brown ran Recycle Technology Ltd and claimed £99,787 in fraudulent VAT repayments between April 2012 and June 2013 with £94,156 being paid while the rest was withheld by HMRC. He also laundered £10,955 criminal money through his business in 2010.
Andrew Baddeley ran CMS Computer Monitor Services Ltd and claimed £94,746 in fraudulent VAT repayments between April 2011 and May 2013 with £49,403 being paid while the rest was held by HMRC. He was also involved in laundering £409,819 criminal money through the company between October 2009 and August 2011.
His father, Peter Baddeley, ran the business until December 2010 and was convicted of money laundering between October 2009 and May 2011.
Baddeley admitted VAT fraud and money laundering on 9 December 2016 and was sentenced to four-and-a-half years in prison, and was banned from being a company director for six years.
Brown was convicted of VAT fraud and money laundering on 11 April 2018 and was sentenced to four-years and one-month in prison, and was banned from being a company director for six years.
Peter Baddeley was convicted of money laundering on 11 April 2018 and was sentenced to two-and-a-half years in prison, and was banned from being a company director for three years.
Proceedings to recover the stolen VAT and criminal proceeds are underway.
Report by Amy Austin