Leslie Thompson, Graeme Cullen, and Graham Newall were convicted earlier this year, while Martin Lang pled guilty to more limited involvement. Thompson was sentenced to seven years in prison, Cullen to six years, Newall to five and a half years, and Lang to four years, resulting in a combined 22-year sentence. The fraud occurred between September 2015 and June 2017, involving the fraudulent evasion of £8.8 million worth of VAT. According to Daily Mail - News, Lady Hood told the men that a lengthy custodial sentence was inevitable. The judge at the High Court in Edinburgh told the men that the scheme involved significant planning and was sustained dishonesty committed over a lengthy period of time.
The VAT fraud was aggravated by a link to serious and organised crime. The scheme involved charging VAT on invoices to various firms for payroll services but siphoning the money instead of paying it to HMRC. The money was siphoned off to associates and family members. Prosecutors described the scheme as incredibly simple but well-organised. A number of firms were involved, including Linear Services, based in Livingston, West Lothian. Linear Services was open for business in September 2015 using a client base from a company that had been shut down by HMRC.
You each appreciate that a lengthy custodial sentence is inevitable.
According to Daily Mail - News, prosecutor William Frain-Bell KC said during the trial that the tax collectors in this case were a group of individuals who never had any intention of parting with the VAT. He explained that it was simple: set up the structure, get recruitment clients on board, collect as much VAT money as possible before HMRC cottoned on, get it shipped out abroad to America and Bulgaria, and buy as much gold bullion and diamonds as possible, as seen from Leslie Thompson’s bank statements, along with luxury four-wheeled treats, smart clothes, watches, holidays and fancy restaurants.
The stolen money was spent on gold bullion, diamonds, fast cars, a £1 million home, and plans for a luxury property development in Bulgaria. According to Daily Mail - News, William Frain-Bell KC added that there were trips to Malaga, the Grand National, fast cars including Audi RS5s, Range Rovers and Mercedes.
The tax collectors in this case were a group of individuals who never had any intention of parting with the VAT.
A judge at the High Court in Edinburgh told the men that the scheme involved significant planning and was sustained dishonesty committed over a lengthy period of time. According to Daily Mail - News, Lady Hood told the men that they each appreciate that a lengthy custodial sentence is inevitable.
Thompson, Cullen, and Newall had all denied the offence during their earlier trial at the High Court in Glasgow. According to Daily Mail - News, defence counsel Michael Anderson KC, for Thompson, said that he continued to maintain that he was innocent. Martin Lang pled guilty to more limited involvement in the crime between February and December 2016 involving £4.8 million of tax money.
In short, it was simple. Set up the structure, get recruitment clients on board, collect as much VAT money as possible before HMRC cottoned on. Get it shipped out abroad to America and Bulgaria, buy as much gold bullion and diamonds as possible, as you saw from Leslie Thompson’s bank statements. Throw in luxury four-wheeled treats, smart clothes, watches, holidays and fancy restaurants.
In a separate case, according to Daily Mail - News, men were sentenced to 11, 9, and 6 years in prison for investment fraud and money laundering, defrauding several thousand people abroad for over 900 million kroner. The defendants were convicted in accordance with Økokrim's indictment.
According to Daily Mail - News, the hope is that the sentence can act preventively by showing that organized crime in the form of fraud and money laundering across borders is investigated and prosecuted, even if the victims of the crime are in other countries than Norway.
There were the trips to Malaga, the Grand National, fast cars including Audi RS5s, Range Rovers and Mercedes.
Unknown aspects of the VAT fraud include the specific evidence linking it to serious and organised crime. The number of firms involved beyond Linear Services is also unclear. Additionally, the identities and roles of associates and family members who received siphoned money remain undisclosed.
Further uncertainties surround the investment fraud case, including how victims were defrauded and what countries they were from. Preventive measures to stop similar cross-border fraud schemes in the future are also unspecified.
He has lost everything.