Financial Crimes Rock the UK: Five Bulgarian Nationals Convicted of £50 Million Benefits Scam
A major milestone has been achieved in the fight against financial crimes as five members of an organized crime group (OCG) have been convicted of perpetrating the largest ever fraud against the United Kingdom’s benefit system. The Bulgarian nationals, who pleaded guilty to fraud and money laundering offenses at Wood Green Crown Court, have collectively been sentenced to over 25 years imprisonment.
The Scam
The scam, which ran between October 2016 and May 2021, involved thousands of false claims made for Universal Credit using real people or hijacked identities, supported by an array of forged documents. The OCG leaders would persist in making the claims even after rejection, until they were eventually granted. The money gained from these fraudulent claims was then laundered through a complex network of accounts and transfers.
The Investigation
The investigation, which was supported by the Agency and assisted by UK and Bulgarian authorities, uncovered a sophisticated operation that exploited vulnerabilities in the benefits system. The suspects used fake identities and documents to make false claims, and in some cases, recruited people from Bulgaria to act as proxies and split the proceeds with them.
Key Findings
- Thousands of false claims were made for Universal Credit using real people or hijacked identities.
- Forged documents were used to support these claims.
- The OCG leaders persisted in making claims even after rejection, until they were eventually granted.
- Money gained from fraudulent claims was laundered through a complex network of accounts and transfers.
International Collaboration
The case took a significant turn when one of the defendants fled to Bulgaria after being released under investigation, only to be extradited back to the UK on February 25, 2023. The collaborative effort between UK and Bulgarian authorities was instrumental in bringing the suspect to justice.
A joint investigation team (JIT) was established between the two countries with the support of Eurojust in January 2022, enabling the direct exchange of evidence and facilitating asset recovery. The JIT also allowed for the surrender of suspects and coordination of national investigations.
Authorities Involved
The authorities involved in the investigation include:
- District Prosecutor’s Office- Sliven in Bulgaria
- Crown Prosecution Service (CPS) in the UK
- Department for Work and Pensions (DWP) in the UK