Embezzlement Scandal Rocks Bulgaria: £54m Stolen from Taxpayers Over Five Years

In what has been described as the largest benefits scam seen in England and Wales, a Bulgarian gang stole £54 million from taxpayers over five years by filing thousands of false claims. The group’s lavish lifestyles were funded through their illegal activities.

The Fraudsters’ Lifestyle

Footage taken from inside one of the gang’s flats shows one of the fraudsters showering the floor with dozens of £20 notes - money that was spent on designer clothes, holidays, and even a high-end Audi sports car. Authorities also found up to £750,000 in banknotes stuffed in suitcases at one of their homes alongside forged and false documents.

The Scheme

The gang made around 6,000 false benefits claims using forged GP letters and fake payslips between 2016 and 2021 through three “benefits factories” that claimed to assist people with obtaining a national insurance number and benefits to which they were entitled. However, it was found that after applicants made their claims for benefits through these sources, the gang took control of the process.

The Money Trail

The court heard how the money gained from these fraudulent claims was then laundered, moved between several accounts through numerous transfers before being withdrawn in cash until the criminals could use it legitimately.

Prosecutor’s Statement

“This case is the largest benefit fraud prosecution ever brought to the courts in England and Wales,” said Specialist CPS prosecutor Ben Reid. “For a number of years, these defendants conspired to commit industrial-scale fraud against the universal credit system, costing the taxpayer more than £50m.”

Sentencing

All five gang members have pleaded guilty to fraud and money laundering-related offences and will be sentenced at Wood Green Crown Court on May 28.

Department for Work and Pensions Secretary’s Statement

The Department for Work and Pensions secretary Mel Stride praised the work of DWP investigators and the CPS in bringing down the gang. “Today’s convictions underline our commitment to protecting taxpayers’ money,” he said. “My message is simple - if you are committing benefit fraud, you are cheating the taxpayer, and we will catch you.”