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Illegal subletting finally resolved

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A council house that was illegally sublet has been taken back by Welwyn Hatfield Borough Council following a court ruling.

The council received allegations about the property in Hatfield in June 2017 and began to investigate, before starting possession proceedings in April 2018.

The tenant listed at the property, Mr Steane, was found to not spend any nights there, while another person was living there and paying him rent.

Mr Steane was found to have breached his tenancy in subletting the house illegally, and the court made an order allowing the council to take back possession of the property, as well as ordering Mr Steane to pay back the rent arrears he had accumulated.

The council's corporate director Simone Russell said: "With his actions Mr Steane deliberately defrauded the council. We take a hard line with people who illegally sublet and use the system for their own gain."

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Council tenant in illegal sub-letting and right to buy frauds

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A council tenant who had applied to purchase his rented home through the Right to Buy scheme has been convicted of illegally subletting it to his children.

Waltham Forest Council tenant, Uwe Werner, 55, applied to buy his Leytonstone property through the Right to Buy scheme, entitling him to a £108,000 discount.

However, the council’s Corporate Anti-Fraud Team established Werner was not living in the Sansom Road property but was in fact renting in Braintree, Essex.

Werner had been subletting the Leytonstone property to his two adult children over a three-and-a-half-year period between January 2015 and June 2018.

Werner was convicted at Snaresbrook Crown Court of illegally subletting the property and handed a two-year suspended prison sentence.

In mitigation Werner explained that his circumstances had changed in 2014 when his work led him to move to Braintree with his wife and youngest children, and so he made the improper decision to illegally sublet the Sansom Road property to his adult children, making a profit of £5226.00.

In his sentencing remarks, Judge Pounder said: “You were originally a legitimate tenant, but your criminal liability is you took a decision which was the wrong decision.”

Judge Pounder also imposed an Unlawful Profit Order for the full amount by which he profited from subletting his council property.

Werner must now vacate the address or the council will instigate civil proceedings to terminate the tenancy.

A council spokesperson said: “Waltham Forest Council is committed to fighting corruption and dishonesty. Combatting tenancy fraud is high on our agenda as we work to ensure that our properties are made available for those who have a genuine need for them.

“We hope this case sends a clear message – we will fully investigate any suspected cases of tenancy fraud and those found guilty may be required to vacate their homes as Mr Werner will now have to.

“This property will now be used to provide a decent roof over the head of a new family, giving them the security and stability they need to make the most of their life chances in Waltham Forest.”

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Bristol reports major successes in countering housing frauds

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Fraud investigators at Bristol City Council have saved taxpayers more than £2million in the last six months, a report reveals.

The dedicated team’s work resulted in 19 council properties being recovered between April and October.

In one case that took 10 years ago to complete, a housing benefit cheat falsely claimed almost £20,000 after failing to declare owning a property.

Despite being convicted in 2012 and receiving a suspended jail sentence the following year, the culprit refused to abide by a confiscation order obtained by the council in court, which ordered the person to pay back the money plus £43,000 of local authority costs.

They served four months in prison as a result, and in 2019 the case finally came to a conclusion when a crown court judge appointed an enforcement receiver to force the sale of the property, with the council’s debt and costs to come from the proceeds.

The half-year counter-fraud report said the 19 council homes recovered amounted to nearly £1.8million, by far the largest portion of the savings to taxpayers.

A further £12,681 is recoverable to the council.

One council employee was sacked following a benefit fraud investigation with the DWP.

The 10-strong anti-corruption team, which investigates scams involving social housing tenancies, council tax reduction, direct payments and those carried out by council staff, also had successes in seven other cases from its tenancy fraud work, such as housing applications being cancelled or benefits savings.

Other examples, according to the report, included “a person removed from the housing register due to a fraudulent application, a person occupying a three-bedroom property but moved to a smaller property due to a fraudulent application and the removal of single person’s discount from a council tax account”.

It said a “key amnesty” was held in April and May with two housing providers where tenants committing fraud were offered the chance to voluntarily surrender their tenancy without recriminations.

As a result, two people handed back their properties, an anonymous tip-off led to a housing application being cancelled because a fraudster had failed to tell the council they had moved out of Bristol, and 23 cases are still under investigation.

Seven people who surrendered their keys during the amnesty period for “no apparent reason” were previously or currently subject to tenancy fraud investigation.

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Well done, Bristol!

Pensioner jailed for benefit fraud

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A "manipulative" man who said he was disabled and claimed almost £90,000 in benefits has been jailed after he was filmed living an active life.

Graham Branfield denied fraudulently claiming a little less than £90,000 in benefits, but a jury at Bristol Crown Court convicted him after deliberating for some 90 minutes on December 19.

While the 76-year-old claimed to be disabled, investigators who covertly filmed him discovered he was actually quite sprightly.

He was filmed delivering catalogues, shopping in a supermarket, and seen carrying bags of bird seed weighing between 20kg and 25kg.

Branfield, who lived in St Andrew's before moving to Knowle, represented himself in a trial this week at Bristol Crown Court.

A jury convicted him of fraudulently claiming £62,000 in Disability Living Allowance (DLA) and £25,000 in pension credit over 10 years.

Retired shopkeeper Brian Sheehan, who runs Fur and Feathers in Knowle, gave evidence during the trial. He said Branfield regularly purchased heavy bags of wild bird seed and pigeon corn from him two or three times a week.

He said the pensioner would park his car near the premises before carrying 20kg or 25kg bags to it without difficulty.

And former neighbour Helen Gillespie told the jury he was a regular dog walker. She also told the court Branfield would shop at Morrisons in Hartcliffe and carry items without difficulty.

Ultimately, Department of Works and Pensions (DWP) staff tailed Branfield as he went on one of his regular shopping runs, and captured evidence on camera.

Branfield, who had an interest in feeding wild birds, said he was suffering from a plethora of debilitating ailments for which he was medicated but he was still able to move around in pain.

He also admitted a small amount of catalogue work, for which he said he drove.

Judge James Patrick jailed Branfield for two years, to run extra to a four-year term he is serving for breaching a Sexual Harm Prevention Order.

The judge said: "This was a simply breath-taking piece of dishonesty. You are an intelligent man and a man with some charm. But you are a manipulative man. Your application may have been honest from the beginning but you saw it as a blank cheque. You received very large sums of money indeed."

The jury heard interviews Branfield gave in early 2016 during an investigation into alleged benefit fraud. He said he had claimed DLA as he was suffering very badly and took pain medication.

Branfield said he suffered from a joint and muscle problem, renal problems and incontinence.

He said medication gave him the chance to be mobile but he was still in a lot of pain when moving and it had not got any better during the past 10 years.

He added a doctor had advised him Betterware catalogue work and feeding birds were giving him something to live for.

Branfield agreed he would leave home every day at 6am or 7am to feed pigeons and foxes unless he felt too unwell to go.

He maintained walking around did not stop him from suffering severe discomfort and he spent a lot of time indoors, lying on his bed, as he had difficulty coping.

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Lawyer was benefit cheat

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A "Walter Mitty" lawyer who claimed £60,000 in disability handouts by falsely claiming he could barely walk was filmed by investigators scaling the stairs inside a courthouse.

Dr Alan Blacker, 47, said he was only able to walk with "much intrepidity, pain and fear of falling after only 20 yards but was photographed "moving with ease" at Cardiff Crown Court.

He also seen "looking particularly elated" after a legal victory where he scaled the court's stairs, saluted security staff as he was searched and pounded the corridors inside - giving staff a cheery wave en route.

Incriminating CCTV footage of Blacker - who also goes by the name Lord Harley - was taken by DWP officials who also discovered the school governor had helped construct a miniature railway.

He also took part in first aid training whilst claiming state handouts between September 1997 and October 2015.

Blacker a solicitor advocate, from Rochdale, Greater Manchester, who was once compared by a judge to a "character from Harry Potter" - claimed disability living allowance including a high rate mobility component which is usually applicable to claimants who have no legs or feet from birth or due to amputation.

In one claim form from 1998 he said: "My whole life centres around avoiding pain, I cannot carry on through life without it really impacting me and causing me real pain. I am not able to keep my focus on any other thing. I started with these problems in 1996. I have problems with self care. These problems cause a risk to my life".

In a subsequent statement he also said he had his own specially adapted shower and said: "Some days I lay in bed all day and cannot motivate myself to get up. I feel like my condition has worsened."

At Minshull Street Crown Court he was convicted of benefit fraud after the CCTV was shown to a jury.

He was sentenced to nine months jail suspended for two years after Judge Paul Lawton branded him a "dishonest man and a deluded fantasist."

Sentencing the judge added: "The picture you painted was one of a severely disabled man but what you said was plainly dishonest. You regularly went out and walked around without a walking stick, aid or carer.

"You walked around a primary school regularly in your capacity as school governor. You made weekly visits to the miniature railway societies where you assisted in driving and maintaining the trains and took part in track maintenance. Those were not the actions of a man on excruciating daily pain.

"You were walking around Cardiff crown court ascending and descending steel flights of stairs with no difficulty whatsoever.

"What you do have diagnoses of alkalising spondylitis and tenosynovitis but you simply use those existing conditions as a dishonest shroud behind which you completely exaggerated your physical disabilities.

"After observing you over a sustained period at trial, I am satisfied that you are not only a dishonest man, but also a deluded fantasist.

"Ultimately and in desperation you tried to tell the jury that the DWP were conspiring to convict you because of your success against them as a benefits appeal lawyer. This was utter desperation from a man confronted with the truth.

"One thing you plainly failed to grasp in your legal education Mr Blacker, is that the rule of law applies to us all - it has no preferences or favourites and those who abuse it are inevitably found out, as you were.

"The jury properly saw through your complete Walter Mitty existence. That was public money that you dishonestly claimed, the loss to the tax payer in excess of £60,000."

Blacker had come to prominence in 2014 when another judge at Cardiff demanded to know why Blacker appeared before him wearing colourful ribbons and badges on his gown to represent a man charged with death by dangerous driving.

He compared his Hagrid-like outfit to "something out of Harry Potter" and urged Blacker to dress more appropriately in future.'

At the time Blacker publicly claimed he was "shocked, appalled and very upset" by the criticism but CCTV of him at court was later seized after DWP officials suspected he was illegally pocketing handouts.

Miss Chloe Fordham prosecuting said: "Witnesses describe many circumstances where he was engaged in a number of actions such as first aid training, which requires physical actions and the construction of a model railway.

"He was seen walking up and down stairs and getting into and out of vehicles without difficulty. He was seen to use a stick but there was nobody helping him standing or walking.

"He believed he was someone who was entitled to retain his benefits but the prosecution say he was dishonest about the changes in his circumstances in order to continue to claim disability living allowance.

"The high rate mobility component is available to people who cannot walk at all, or have no legs or feet from birth or due to amputation.

"They can only walk short distances before being in severe discomfort or endangering their life. They are either 100% blind and/or 80% deaf, or somewhat mentally impaired.

"A middle rate care component is available for people who require frequent assistance getting in and out of the bathroom, washing, dressing and tending to their needs. They also require supervision throughout the day.

"The defendant said he needed someone for "physical support", for getting to the bathroom, and he had a problem keeping his balance. He said he could walk no more than 20 yards says he falls over regularly and has trouble crossing the roads.

"When asked if he would need someone he said "yes, everyday without fail. I cannot rise from my feet without someone, I cannot stand up for long enough".

He also said he has problems cutting up food and eating and drinking.

"He said he always found sitting painful and said he has to use large handled cutlery. In 2011 there was a further form claiming his entitlement to benefits was appropriate as he was unable to walk and needed full physical support.

"He said he received physical care from someone and said he was at risk of harming himself by accident."

"He said he practised law through a charity and not for financial gain and was shown footage where he was seen moving about with ease at Cardiff Crown Court in 2014.

"He told them he won a Crown Court case on behalf of a client and he became particularly elated but it It must have been clear to Alan Blacker that once he was able to move around, he should have informed those facts to the DWP. But he knew this would affect his entitlement.

The DWP stopped Blacker's benefits in 2016 following a review.

That same year he was struck off for making "inaccurate and misleading" statements about his academic qualifications and professional memberships and was later made bankrupt by the Solicitors Regulation Authority with debts of over £100,000.

Blacker denied benefit fraud. Defence lawyer lawyer Dominic D'Souza said in mitigation: "This man has suffered with many severe disabilities. These conditions are debilitating. He has assisted over 7,500 clients over a 25 year basis and he had been doing pro bono legal work.

"He is somebody, bar this incident, who has contributed to this community that puts people like me to shame.

"The question of being a doctor, or lord, or viscount, there are self esteem issues there. He has done an awful lot for an awful lot of people.

"He suffers from a Walter Mitty desire to improve his self esteem. This is not an out and out fraud. This will be paid back over time."

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Man committed two social housing frauds

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A housing fraudster from Kingswinford who sublet his council home has been handed a six-month prison sentence suspended for two years and a bill of more than £7,000.

Dudley Council successfully brought a case against John David Facer, aged 52, of Keepers Close, who was sentenced at Dudley Magistrates Court on Friday January 10.

Mr Facer was found to be subletting his one-bedroom property for three years while he was living in a property that he had bought in Kidderminster.

After selling the home in Kidderminster and making a profit of £58,000, Mr Facer moved back to Keepers Close and submitted a fraudulent Right to Buy application to purchase the property from Dudley Council.

Had his application been successful, this would have entitled Mr Facer to a discount to the value of £36,250.

However, due to further investigations into the sublet of the property the application was cancelled by the council.

Mr Facer pleaded guilty to subletting his council property, under the Prevention of Social Housing Fraud Act 2013. He also pleaded guilty to two counts of fraud.

Before sentencing District Judge Webster warned Mr Facer he was “close to leaving the court in a van” but he proceeded to sentence Mr Facer to six months imprisonment, suspended for two years, and ordered Mr Facer to complete 240 hours of unpaid work.

Mr Facer will also have to pay back an unlawful profit order of £1,955.68, a victim surcharge of £115 and legal costs of £5,000.

Due to Mr Facer being unwilling to relinquish the tenancy voluntarily, the council are in the process of recovering possession of the property, in order that it can be allocated to an eligible applicant who is in need of social housing. The possession case is due to be heard at the end of January 2020.

Councillor Laura Taylor, Dudley's cabinet member for housing, communities and residents' welfare, said:
Mr Facer’s actions will have deprived someone in genuine need of housing and once again we are showing people that falsifying housing applications is a serious offence. I would remind anyone who may be considering falsifying a housing application that we will take legal action against people who commit housing fraud.
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Repeat benefit cheat claimed for dead wife - prison again

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A 71-year-old man fraudulently claimed almost £32,000 in benefits as his wife's carer while she actually lived in a residential home.

Norman Gill continued to receive benefits after she passed away, until someone anonymously told the authorities what was going on.

Gill had previously been handed a suspended prison sentence after using the public purse to pay the mortgage on his half-a-million pound house in Swansea by claiming to be penniless while in fact running two successful businesses.

He was back in court on Thursday for more benefit frauds, offences committed shortly after he was released from prison for failing to pay back money from the first scam.

Swansea Crown Court heard Gill's initial claim for carer's allowance and pension credits on the basis he was caring for his wife - who was suffering with MS - was legitimate.

However, when his wife's condition deteriorated and she moved into Swansea 's Hengoed Court residential home in March 2012, Gill continued to claim benefits he was not entitled to.

Tom Scapens, prosecuting, said over the course of the following years the defendant was sent regular letters reminding him of his obligation to notify the authorities about any change of benefits.

The barrister said in 2015 Gill was also asked to fill and return a pension credit form which specifically included a question about whether his partner was living in a care home, to which he had replied no.

The court heard Mrs Gill died in January 2018 but the defendant did not notify the authorities - it was only some three months later following the receipt of information from an anonymous source that checks were made with the care home, and the true situation was revealed.

Gill, from Langland, Swansea, had previously pleaded guilty to two counts of failing to notify the Department for Work and Pensions (DWP) of a change of circumstances when he appeared in the dock for sentencing.

The court heard that in 2009 he had been sentenced to 48 weeks in prison suspended for two years for benefit fraud. This offending had seen him claiming benefits from Swansea Council and the DWP on the basis he was unemployed and had no income - in reality he ran Piaf Fashions, which made him around £90,000 a year, and was the boss of property firm NT Project Management, which provided an income of up to £3,500 per month through its portfolio of houses in Swansea and Port Talbot .

The court heard he had been ordered to pay back £200,000 from his ill-gotten gains from this fraud but after failing to do was was jailed for 10 months. That financial confiscation order is still in place.

John Allchurch, for Gill, said it had been a "stressful and distressing time" for the defendant as he watched the health of his wife of almost four decades deteriorating - but he accepted he should have told the authorities about the changes in circumstances.

The court heard Gill has been in an "on-off" relationship with a woman in London for the last seven years, but the advocate said he did not know the "minutiae" of that relationship.

Mr Allchurch said his client's house was currently on the market for some £700,000 but there were two large mortgages on the property - both in excess of £300,000 - and if it is sold, the combination of those plus the outstanding confiscation order will extinguish any equity in the property, and leave the defendant homeless and having to leave "Swansea west".

Judge Paul Thomas QC told Gill he had embarked on his fraudulent claim for carer benefits "within a relatively short period" of having served a prison sentence for falling to pay what he owed from the original fraud.

He said the "persistence" of the defendant's fraudulent activities meant immediate custody was appropriate, despite his age.

Gill was sentenced to 24 weeks in prison - he will serve half that period in custody before being released on licence to serve the remainder in the community.

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Parents jailed for long term benefit fraud

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A shameless couple pocketed £108,754 of taxpayers' money to live a life of luxury by pretending they were landlord and tenant to steal benefit cash.

Melissa Ellis, 34 and Jonathan Lucas, 38, were handed the money over a nine-year period.

Liverpool Crown Court heard that they kept housing benefit and other kick-backs their weren't entitled to - and spent it on mega-money trips to America, Dubai and Portugal.

They even upgraded their Huyton home which has special security gates.

On the driveway was a convoy of vehicles including a Jaguar car, a Mercedes, a Range Rover and a Transit van with a trailer.

There were also four mountain bikes, one large scrambler bike and two smaller bikes in the garage at their home.

Suspicious fraud investigators for the Department for Work and Pensions eventually snared the couple after visiting the four bedroom pad.

Ellis and Lucas, who illegally claimed the benefits between 2008 and 2017, were living together as husband and wife, it was discovered.

Ellis claimed housing benefit as a tenant and then paid it to her partner, Lucas, a self-employed businessman, as her landlord and the property owner.

The couple were arrested at the scene.

Lucas admitted to officers there was also cash belonging to him in a safe in the loft.

They found £35,000 and more money in the kitchen, along with some Mexican currency. In total, they seized £55,931 and $437.59 in Mexican Pesos.

The couple were taken to St Anne Street police station for questioning.

Ellis was shown her applications for housing benefit and income support made from her previous address in Garston, and her current Huyton address, all made as a single parent. The 34-year-old admitted making false claims.

Lucas claimed to live at an address in Abergele, north Wales, but investigators found it to be frequently booked up as a holiday cottage with paying guests.

Ellis eventually pleaded guilty to two counts of making a dishonest representation to obtain benefit and three counts of dishonestly failing to notify a change of circumstances. She was jailed for two years and three months.

Lucas pleaded guilty to two counts of encouraging or assisting the commission of an offence. He was handed 21 months behind bars.

Investigators will try and recoup some of the £108,000 in a Proceeds of Crime application.

Maqsood Khan, from Merseyside Crown Prosecution Service, said: “Jonathan Lucas and Melissa Ellis are a pair of serial fraudsters who were falsely claiming a variety of benefits while living a very nice lifestyle indeed. The most that Jonathan Lucas would admit to was that Melissa Ellis was his ‘on-off girlfriend’, yet they were clearly living together as man and wife, bringing up their three children and going on expensive foreign holidays together.

“Lucas denied living at the house in St Mary’s Road but was shown the tenancy agreements for both that property and the house in [Garston] and confirmed he’d completed them and then given them to Ellis knowing she would be using them for her housing benefit claim. He said he didn’t see what was wrong with him charging Ellis rent for living in the house, even though his children were living there too.

"Nailing these two cheats has taken a lot of work, but they eventually pleaded guilty and have now been sent to prison. The benefits system is there to protect some of the most vulnerable people in our society. That clearly doesn’t include Jonathan Lucas and Melissa Ellis.”

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Anti-fracking campaigner was lying benefit cheat

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An anti fracking campaigner who claimed to benefit chiefs he was unable to leave his home was later caught on camera climbing onto a lorry during a protest at Little Plumpton.

John James Knox, 33, was found guilty of benefit fraud following a trial before Preston Crown Court.

The Department for Work and Penions said Knox was found to be claiming ESA as well as Disability Living Allowance for mobility, yet was overtly filmed partaking in demonstrations which included scaling moving lorries and mounting long demonstrations on top of them, while also shackling himself to other demonstrators for long periods of time.

The overpayment of his personal independence payments (PIP) totalled almost £9,000.

The court heard he told the Department for Work and Pensions he suffered a range of mental and physical ailments - but he was filmed climbing onto a lorry on the A583 near the Cuadrilla fracking site.  Knox remained on the roof from 8am until 10.30am the following day, and it had to park up. He was later fined after admitting wilful obstruction of the highway.

Knox, formerly of Dugdale Place, Blackpool, but now of Maplewood, Liverpool, pleaded not guilty - despite the picture evidence - to failing to notify the Department of Work and Pensions over a change in circumstances. But he was convicted after prosecutors said he had made a statement that he needed assistance bathing and dressing himself and leaving the house.

Judge Andrew Jefferies QC adjourned his sentencing until March 9.

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Benefit cheat pursued slowly for historical benefit fraud

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A man who cheated Havering Council out of more than £30,000 through council tax and housing benefit fraud has been jailed.

David James Richards, 62, of no fixed abode was handed a seven month prison sentence at Westminster Magistrates' Court on January 21 after refusing to pay a court order of £18,388.90.

Richards, formerly of Abberton Walk, was originally successfully prosecuted in 2011 after investigations found he had claimed £33,757 from Havering Council, and £16,312 from the Department of Work and Pensions - a total loss to the public purse of £50,069.

The council's fraud investigators discovered Richards had flagrantly been living a life of luxury at the expense of local taxpayers.

Investigations found Richards was not only running a successful business with substantial assets, but he was the owner of seven vehicles, a luxury caravan and two speed boats - one of which was called Well Dodgey.

Despite a suspended sentence and a proceeds of crime order being issued - requiring Richards to pay back £41,550 - he still refused to pay the amount owed - even after it was reduced to £18,409.

District Judge Samuel Goozze told him: "You were given two months to sell your assets and pay in full. You have made no attempts to pay, being dilatory, not expediting matters, keeping assets hidden. You leave no option but to serve the seven month prison sentence."

Leader of the council, councillor Damian White, added: "After shamelessly abusing the benefits system at the expense of honest, hard-working, local taxpayers and then repeatedly dodging his responsibility to pay it back or accepting any kind of regret, I am pleased that this defendant has finally got his just deserts."

In addition to the seven month prison sentence, the courts will continue to pursue Richards for the unpaid debt plus interest.

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Benefit cheat was repeat offender

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A mum from Leeds who illegally claimed more than £28,000 in benefits over a nine-year period has avoided jail.

Zena Hirst claimed she was unemployed and living alone in order to get housing benefits and discount on her council tax.

But the 64-year-old's adult son was living with her and was working full time.

Her offending came to light when a routine check was carried out and revealed that someone else was registered as living with her.

Leeds Crown Court heard Hirst began the offending in January 2009 when she filled out forms for housing and council tax benefits on the basis she was living on her own and was receiving job seeker's allowance.

Prosecutor Laura Addy said Hirst kept up the deception on an annual basis when she received letters reminding her that she must inform authorities if there was a change in her circumstances.

She continued to claim that she was living alone.

The defendant also maintained the lie when she was required to fill out forms when the Bedroom Tax was introduced in 2012.

Hirst came under suspicion in 2018 when a routine check was carried out and an e-mail was sent to her asking if her son was living with her.

Miss Addy said: "She immediately declared that her son was a resident and had been since 2009 and offered to repay the money at a modest rate."

Hirst was interviewed and said her son had been living between her home and his then girlfriend's home at the time she made the claim but he had been living with her on a permanent basis since 2011.

The total amount illegally claimed over the period was just over £28,000.

Hirst pleaded guilty to two offences of benefit fraud.

She has a previous conviction for benefit fraud in 2004 when she received a conditional discharge.

Phillip Morris, mitigating, said Hirst made the benefit claims after she was made redundant from her job in a warehouse in December 2008.

He said she now works as a cleaner and has repaid more than £1,000.

Hirst was given a 14-month prison sentence, suspended for two years, and ordered to do 200 hours of unpaid work.

Judge Simon Batiste said: "I accept that this was not money obtained for high living."

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You might think that previous offenders might receive extra scrutiny. But no.

North East campaign highlights the cost of housing fraud

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The financial and social impact of housing fraud will come under the spotlight as part of a regional awareness campaign.

Housing fraud is the third biggest type of fraud affecting councils in the UK, costing local authorities £135.6m in 2018/2019. It can also contribute to problems such as anti-social behaviour and vandalism within communities.

The North East Tenancy Fraud Forum will lead a social media campaign to raise awareness of the different types of housing fraud and to encourage members of the public to report their suspicions.

Types of housing fraud

  • Unlawful subletting - where a tenant lets out their council or housing association home without the knowledge or permission of their landlord;
  • Abandonment - where a tenant parts possession with their socially rented property, has no intention to return and does not inform the landlord;
  • Right to Buy/Acquire - where a tenant has applied for or completed the purchase of a socially rented home under the Right to Buy/Right to Acquire Scheme when they are not entitled, or misrepresented their circumstances to gain a discount;
  • Wrongly claimed succession - where a tenant dies or moves out and someone, who is not entitled to, tries to take over or succeed the tenancy;
  • Unlawful assignment - where a resident stops using their tenancy as their main or principal home, allowing another person to live there without permission;
  • Key selling - where a tenant is paid to pass on their keys in return for a one-off payment.

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Judge attacks lax monitoring of fraudulent benefits scheme

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A benefit fraud scam in which women pretended to be cleaners at schools cost the taxpayer almost £1m, a court heard.

Ringleaders Mohamed Goth, 66, and Feisal Aw-Isse Sadi, 43, have been jailed for eight and five years in their absence respectively after fleeing the country.

And 21 women from Manchester's Somalian community were also in the dock, following five crown court trials and a prosecution which a judge estimated may have cost another £1m in lawyers' and translators' fees, as well as court time.

Manchester Crown Court heard that the women were employed as 'cleaners' at two schools set up on Claremont Road, in Rusholme.

Goth and Sadi were directors of Iftiin Educational and Skills Centre Ltd, set up in a converted terraced house, and Hilaal Child Care, also known as Sherwood Education and Training Centre, established in a former pub.

Up to 20 'cleaners' were employed at both sites, in a staff size which Judge Anthony Cross QC said would have been more fitting for Manchester town hall, rather than businesses in a 'two up two down' properties.

He said: "This was a cleaning staff that would probably equate to that employed at the town hall here in Manchester, yet no one until the fraud was rumbled seemed to have noticed this remarkable fact."

Despite this, environmental health staff were called out separately after there was found to be a 'pest infestation' in a kitchen area.

The judge said the officers found 'few if any cleaning materials'.

Instead of cleaning, the women would sit in a room waiting for their children to finish the lessons, where English, maths and science were taught by 'well meaning' but inexperienced young people, often just out of university.

The women would sometimes 'tidy up a little litter' or 'occasionally mop up a spillage', the court heard.

The scam allowed Goth and Sadi to generate tax credit and benefit claims, so that the pair could obtain 'wholly unrealistic' payments to their companies to the tune of about £870,000.

By finding this 'work', this meant that the women could move from claiming job seeker's allowance to working tax credits, and would make them entitled to other benefits including housing and council tax benefit.

By moving onto different benefits the women did not have to attend meetings or appointments associated with job seeker's allowance, the judge said.

"The real purpose was so that the conspiracy could trigger the entitlement to working tax credit," the judge said.

Over many months, the women claimed more benefits than they were entitled to, with some receiving more than £20,000.

Judge Cross said: "The allegation then and now was that approximately £1m of public funds had been defrauded. It would not be surprising if the conduct of Goth, Sadi and these women and the other defendants have cost the public in excess of £2m.

"These defendants lived in an area in which there is considerable deprivation, where over time public services have been eroded. It is simplistic to apply simple arithmetic to this complex problem, but what good might have been done with the money wasted by these women, by those in their community who are in need?

"My concern is that this fraud was so blatant and organised that others of its type are in existence in Manchester."

The judge called for an urgent investigation to be conducted by the authorities to establish whether there are similar frauds taking place currently.

He also raised concerns at an apparent lack of background checks on the teachers who worked at the school.

"It is difficult to understand how any inspector concerned who had the interests of children as their paramount consideration could give approval to this place as an educational establishment," the judge said. "It also defies belief that it was considered safe to let young children into these premises."

The fraud was uncovered by the Department for Work and Pensions after a 'random computer check'.

Goth, formerly of Howcroft Street, Bolton, now thought to be in Somalia, and Sadi, formerly of Dunworth Street, Rusholme, whose whereabouts are not known, were convicted of conspiracy to defraud and both received jail terms which will start if and when they are arrested.

All 21 women appeared in court for sentence on Tuesday afternoon.

The majority of the defendants had to sit in the area of court usually reserved for juries as the dock was already full.

All of the women, who live within Manchester's Somalian community, were spared jail and ordered to carry out unpaid work.

"This fraud must have been well known to those who frequented this place," the judge said. "I have no doubt that each woman believed that she was on to a good thing and was happy to let it continue."

The judge warned the women: "If you don't do the work, you will go to jail."

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Unlawful Profit Order for illegal subletting

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A council tenant illegally sublet his Walthamstow flat for five years while living in Warrington with his partner and children.

Oluwajare Adegbuyi was caught illegally subletting the flat in Stocksfield Road following a Waltham Forest council anti-fraud team investigation in partnership with Warrington Borough Council.

Officers discovered the occupier of the Stocksfield Road property was not the rightful tenant; Adegbuyi found to also be registered as the tenant of a council property in Warrington.

At Thames Magistrates’ Court on Thursday, January 23, the defendant claimed he had moved to Warrington to be with his partner and their two children.

He said he had let his aunt live in the flat, and then subsequently let it to other tenants because he was not sure if he would return and did not wish to give up his council property.

Adegbuyi pled guilty to dishonestly sub-letting and the judge imposed an unlawful profit order, compelling him to pay back money he received from subletting the property.

He was fined £130 and ordered to pay back £846. Waltham Forest Council was also awarded full legal costs – Adegbuyi will have to pay in excess of £2,500 in total.

The property has since been returned to the council and made available to house an individual previously on the waiting list.

Cllr Louise Mitchell, cabinet member for housing and homelessness prevention, said: “Illegal subletting is not a victimless crime. It denies homes to people and families who are in genuine need of them. We will always push for the highest penalties in instances of fraud, although the courts will make the final decision.

“This is an excellent example of our housing officers and anti-fraud team working together to ensure the people who live in our properties are the rightful and legal tenants.”

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Pensioner claimant didn't disclose he was working

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A self-employed decorator from Southampton defrauded the taxpayer out of more than £35,000 by collecting benefits while still working.

Barrie King, 74, claimed pension credit and housing benefit despite taking on paid work as a painter and decorator.

In total, King pocked more than £35,000 in fraudulently claimed benefit over a seven year period.

Now King has been given a suspended sentence and ordered to complete unpaid work.

Southampton Crown Court heard King initially made the benefit claim in February 2012.

Prosecutor Tim Compton said King claimed Pension Credit, a government-paid benefit paid to pensioners to bring their weekly income up to a minimum amount.

The court heard King also claimed housing benefit, which is paid out by local authorities to help those who need it to supplement their accommodation costs.

But the court heard how King continued to file yearly tax returns to HM Revenue and Customs (HMRC) from his self-employed work as a painter and decorator.

Mr Compton said King was not entitled to either benefit as a result of his income.

Mitigating for King, Victoria Hill said King had no work on at the time he made the claim, but accepted that King continued to collect the benefits while working.

She said: “He tells me he just left things how they were and that he regrets not doing something about it.”

Ms Hill added that King was paying back £120 a month towards the housing benefit amount and £26 a week towards the pension credit amount.

In sentencing King, who pleaded guilty to two counts of benefit fraud, Judge Nicholas Rowland said: “What you did was to steal from the tax payer and people who need benefits to keep them going. Just think about what that money could have been used for.”

Hill was given an eight month sentence, suspended for two years, and ordered to do 200 hours unpaid work.

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One arm of the state knew he was working (HMRC). Another paid out benefits because he said he wasn't. How hard can joined up government be?

Surfer claimed she was disabled

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A competitive surfer and musician who performed at Glastonbury has been convicted of a £13,000 benefits scam after exaggerating her care needs.

October Hamlyn-Wright, 36, told officials she suffers from an array of medical conditions as she applied for benefits, saying she suffers pain and mobility problems that impact on her daily life.

However, she fell under suspicion thanks to her “October Rocks” website, detailing her hectic schedule of surfing competitions and performances as a singer-songwriter.

Hamlyn-Wright finished fifth in the 2016 British National Surfing Championships and 2017 English National Surfing Championships, and blogged about riding the waves in Australia, Kingston crown court heard.

Under the stage name October, she has sung at Glastonbury and the Isle of Wight festival and one of her tracks has been played on BBC Radio 1.

Prosecutor Andrew Price showed jurors pictures and videos of Hamlyn-Wright from Facebook, YouTube and her own website, as she described herself as a “professional singer, songwriter, surfer and shark enthusiast and a surfing competitor with ‘Boardmasters’”.

He said: “She says she splits her time between London and the South-West and had performed on nine stages at two festivals and at Ronnie Scott’s Jazz Club, the ExCel, in Gothenburg, Birmingham Symphony Hall and Melbourne.”

Hamlyn-Wright was awarded a higher rate of benefits on the basis that she needed a carer for two hours a day to get her in and out of bed and an hour’s worth of assistance with washing herself.

“The benefit was awarded on the basis she was virtually unable to walk and needed full-time care,” said Mr Price.

He told the court Hamlyn-Wright had been put under surveillance and was seen “walking, shopping, climbing stairs, performing and engaging with her audience between songs unaided and without obvious pain”.

In a letter supporting her benefits claim, Hamlyn-Wright said she suffers from auto-immune disease lupus which causes breathing difficulties, she has to cope with constant pain from fibromyalgia, she has insomnia, Crohn’s disease, chronic arthritis, and said she had been wheelchair-bound for parts of her life.

“It’s a complete nightmare and prevents living a normal life,” she said, referring to nightly bouts of vomiting, and “unbearable shooting pain”.

She also said she struggles with chest inflammation, writing: “The pain is so bad my chest cannot move as it should. Lying down is excruciatingly painful and when that happens someone has to help me lie down and get up.”

She added that she has suffered fractured ankles from falls, claiming: “Dressing and getting in and out of the bath is impossible on my own.”

Hamlyn-Wright, from New Malden, was convicted of making a dishonest false representation to the Department for Work and Pensions to claim Disability Living Allowance in October 2015. She was acquitted at trial of a second benefit fraud charge from 2013. She was released on bail until sentencing on March 17.

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Two fined over council tax benefit fraud

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Two people received fines and costs and have to pay back thousands of pounds after admitting fraudulently claiming Council Tax Support for years while they were actually working.

Shaun Emery, 46, from Biggleswade, started to claim the benefit in March 2014 on the basis he had no earnings but the fraud team discovered he was in work the following month.

He has to re-pay £3,131.66 for the discount he received, and Luton Magistrates’ Court ordered him to pay costs of £564, a victim surcharge of £44 and fined him £442.

Lynne Morris, 51, of Spoondell, Dunstable started claiming in December 2016 although the fraud team found she too had also been working.

She has to pay back £3,118.96 as well as pay costs of £470, a victim surcharge of £39 and a fine of £390 imposed at the same hearing.

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Illegal sub-letter must pay back gains

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A housing association tenant has been ordered to pay back the £6,000 he scammed by sub-letting his flat to tourists.

Liverpool County Court heard how the Riverside tenant had been renting the flat for two years until arousing the housing officer’s suspicions.

Those suspicions exposed the tenant as subletting the flat to people via a “well-known website” that provides temporary accommodation to tourists, so she referred the case to Riverside’s tenancy fraud team.

And Riverside’s Counter Fraud Specialist took it from there to uncover clear evidence that the tenant was misusing the property by sub-letting it and making a profit from the proceeds.

Riverside contacted the tenant about this and served him with Notice to Quit, which prompted him to hand the keys back to Riverside within a week.

Riverside also took legal action that led to the County Court case and a judge awarding Riverside an Unlawful Profit Order – which means that the former tenant must pay back £6,000 that he had made unlawfully.

Speaking after the case, Michael Anderson, a Regional Services Manager with Riverside confirmed the Unlawful Profit Order was a first for the provider.

“We are really pleased with the result, we tenancy fraud very seriously and will act upon information identifying any of our properties are being misused,” he said.

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Government to spend £12m p a tackling housing benefit fraud

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The government has announced extra cash to help local authorities crack down on housing benefit fraud and error, as part of the housing announcements in today’s Budget.

Council resources to tackle fraud and error associated with the benefit will be bolstered by an extra £12m a year.

But the Office for Budget Responsibility (OBR) said the policy is likely to see “diminishing returns”.

The OBR noted that housing benefit is being replaced by Universal Credit for working-age claimants but government is providing the same funding – £12m – each year, despite fewer people claiming housing benefit as a result of the switch.

The OBR said: “As a result it will target a diminishing caseload over time and [an] increasing proportion of which will be pensioners. This is likely to generate diminishing returns on compliance interventions because the remaining caseload is less likely to be in work or experience frequent changes in circumstances, so less likely to make errors in their claims.”

Overall the independent forecaster said this policy had a ‘high’ uncertainty rating.

Under current government plans, the housing benefit will be replaced by Universal Credit by 2023.

According to research in November by the Chartered Institute of Public Finance and Accountancy, housing fraud cases fell by 23% in 2018/19.

Cases of council housing fraud fell from 4,733 in 2017/18 to 3,632 in 2018/19, while Right to Buy fraud cases more than halved from 1,518 cases to 652.

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Benefit cheat must pay back £20,000 she swindled

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A benefit cheat has been ordered to pay back £20,000 after she was secretly filmed by undercover investigators.

Julie Priest, aged 54, lied about her disability to pocket almost £35,000, a court heard.

She has already been handed a suspended prison sentence after a judge heard she needed mental health care – and also provided care for her sick husband.

Now Priest has been dragged back to Plymouth Crown Court for a hearing under the Proceeds of Crime Act.

She accepted that she had pocketed £34,844 in disability benefits to which she was not entitled over three years in disability benefit.

Priest was sentenced back in September on the basis that she had cheated the Department for Work and Pensions out of £17,000. But the figure has been revised after complex recalculations and negotiations between prosecution and defence.

Emily Pitts, for the Crown Prosecution Service, told the latest hearing that she had assets of £20,000 in her share of equity in a jointly-owned house. The barrister said that sum was based on the lowest estate agent’s valuation.

Judge Paul Darlow ordered that Priest pay £20,000 within three months – the longest time possible.

He added that she would face seven months in prison if she did not pay.

Judge Darlow said: “I am sure it will not come to that.”

Priest denied dishonestly failing to notify a change of circumstances affecting her disability benefits between July 2015 and July 2018.

She was found guilty after a trial in August.

The jury heard that she suffered from Chronic Pulmonary Obstructive Disease but exaggerated the impact it had on her life. She was caught out by undercover surveillance.

Priest was handed a 30-week prison sentence suspended for two years, with three months of mental health treatment. She was also ordered to complete probation’s Rehabilitation Activity Requirement and pay £100 victim surcharge.

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