Fight goes on after defeat of VAT gang

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Saturday, November 22, 2008
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This is Staffordshire

REVENUE and Customs officers have pledged to continue to take "robust" action against criminal gangs who steal from the taxpayer.

The warning comes after Staffordshire VAT fraudster Craig Johnson was this week ordered to pay back £26 million of the money he stole from the public purse or face a further 10 years in prison.

The 35-year-old, who lived at Meaford Hall, Stone, is serving a twelve-and-a-half-year prison sentence for his role in leading an organised crime gang who together stole a total of £138 million from the taxpayer in a complex 'missing trader' VAT fraud.

A confiscation order was secured at Wolverhampton Crown Court on Thursday, forcing Johnson to pay back the proceeds of his crime.

Today, Robert Alder, assistant director of criminal investigation for HMRC, said: "This is one of the largest thefts from public funds that has been brought before the courts.

"It has resulted in one of the longest prison sentences and one of the largest confiscation orders ever secured.

"Our work does not stop with the sentencing of these major career criminals – we will seek to reclaim their criminal profits and put an end to their luxurious lifestyles.

"'Missing trader' fraud remains one of our top priorities. Stringent and robust action will continue to break up these criminal gangs, and take away their liberty as well as their illicit gains."

Johnson has been ordered to repay over £26 million – £8 million within the next 12 months and the remainder within a further 12 months.

Johnson's restrained assets include a helicopter, a yacht, two properties including a stately home, Meaford Hall, performance vehicles – a Ducati, Aston Martin, Ferrari and two Bentleys, Rolex watches and diamonds.

The confiscation hearing also featured two other defendants from the gang including Linda Wragg and Steven Lipinski. Lipinski has been ordered to pay £376,540 within nine months or face a further three-and-a-half years in prison. The confiscation order relating to Wragg, aged 44, of Hanchurch, will be heard next week.

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