'UK's biggest benefit fraudsters' are gang who stole £54m with 6,000 fake claims

10 April 2024 , 08:09

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'UK's biggest benefit fraudsters' are gang who stole £54m with 6,000 fake claims

A gang of five men and women have pleaded guilty after they stole £54million from British taxpayers in an 'industrial-scale' benefit fraud scheme.

Galina Nikolova, 38, Stoyan Stoyanov, 27, Tsvetka Todorova, 52, Gyunesh Ali, 33, and Patritsia Paneva, 26, who are all Bulgarian nationals, pleaded guilty to fraud and money laundering for their involvement in the multi-million-pound scam. Their criminal operation was described by the Crown Prosecution Service (CPS) as the largest case of benefit fraud ever uncovered in England and Wales.

Wood Green Crown Court heard how over a four-and-a-half-year period, between October 2016 and May 2021, the organised crime group made thousands of false claims for Universal Credit using either real people or hijacked identities.

Tsvetka Todorova, 52, has pleaded guilty to fraud and money laundering related offences

Gyunesh Ali, 33, fled the country to Bulgaria but was extradited back to the UK last year

These claims were supported by an array of forged documents, including fictitious tenancy agreements, counterfeit payslips and forged letters from landlords, employers, and GPs. If the claims were rejected, the fraudsters would try again and again until they were granted.

The investigation identified three 'benefit factories' in London where repeated false claims for benefits originated from. The businesses claimed to assist people with obtaining a National Insurance number and benefits to which they are entitled. But once applicants made their claims for benefits through these three sources, they then left them in the hands of the organised crime group.

Date millions on Universal Credit and benefits will get a pay rise this year

The gang made thousands of false claims for Universal Credit using either real people or hijacked identities (CPS)

Galina Nikolova, 38, is a Bulgarian national

Money gained from these fraudulent claims was then laundered as it was moved between a number of accounts through numerous transfers and withdrawn in cash, the court heard.

The defendants were first arrested on 5 May 2021 and a number of properties were searched. During these searches hundreds of 'claim packs' containing forged and false documents were found and seized, as well as bundles of cash stuffed in shopping bags and suitcases, a luxury car and designer goods including watches, jackets, and glasses.

An Audi was found to be among the luxury items bought with the money (CPS)

Following his release under investigation, one of the five defendants, Ali, fled the country to Bulgaria but he was extradited back to the UK on 25 February 2023 to face justice. When faced with the large amount of incriminating evidence which included encrypted messages, CCTV footage, forged documents, seized digital devices and bank statements, the defendants eventually all pleaded guilty.

Speaking after the case, Ben Reid, Specialist Prosecutor for the CPS, said: "This case is the largest benefit fraud prosecution ever brought to the courts in England and Wales.

Nikolova and Stoyanov seen together on a luxury Turkish getaway

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. Submitting thousands of false claims, the organised criminals enriched themselves from government funds designed to protect and help the most vulnerable people in our society.

Nikolova was also working behind the corner of a shop in Wood Green

"This was a complex and challenging case which required close and effective working between CPS prosecutors, the Department for Work and Pensions and our international partners in both Bulgaria and through the UK desk at Eurojust, to dismantle and successfully prosecute the organised crime group.

Cash stuffed in suitcases helped uncover a benefits fraud scheme that cost the UK taxpayer £54 million (CPS)

The guilty pleas entered by all five defendants, reflects the strength of the evidence against them."The CPS Proceeds of Crime Division and DWP will now pursue confiscation proceedings against the defendants, to remove from them any available criminal benefit from this enterprise."

Stoyan Stoyanov, 27, was one of five members of the organised criminal gang

Patritsia Paneva, 26, was convicted for her involvement in the scheme

Mel Stride MP, Secretary of State for the Department for Work and Pensions, said: “I am immensely proud of DWP investigators’ work, in collaboration with the Crown Prosecution Service, to take down this organised crime group. Building on our success in preventing £18 billion going into the wrong hands in 2022/23, these convictions underline our commitment to protecting taxpayers’ money. It is only right and fair that we bring those stealing from the public purse to justice.”

Benedict Tetzlaff-Deas