Bulgarian Nationals Imprisoned for £53M Universal Credit Fraud Scheme
In a landmark case, five Bulgarian nationals were imprisoned for their involvement in a multi-million pound benefit fraud scheme in England and Wales.
The Fraudsters
- Galina Nikolova, 39
- Stoyan Stoyanov, 28
- Tsvetka Todorova, 53
- Gyunesh Ali, 34
- Patritsia Paneva, 27
Sentencing
The group was sentenced at Wood Green Crown Court on 30 May 2024, after admitting to conspiracy to commit benefit fraud and money laundering offenses.They were sentenced to a combined total of 20 years and nine months imprisonment.
The Fraud
- Four-and-a-half-year duration from October 2016 to May 2021
- Over £53 million defrauded from the Universal Credit system
- Thousands of bogus claims
- False documents used: forged payslips, tenancy agreements, letters from landlords, employers, schools, and GPs
Description of the Case
Ben Reid, a Specialist Prosecutor for the CPS, described the case as the largest benefit fraud prosecution in English and Welsh history. The individuals exploited and manipulated a system designed to protect the most vulnerable members of society for their own enrichment, defrauding the British taxpayer of over £53 million.
Fraudulent Claims and Money Laundering
The fraudulent claims were sustained by submitting false documents and reapplying when claims were rejected. Once the funds were secured, the money was laundered through various accounts and withdrawn in cash.
Investigations
The first arrests were made on 5 May 2021, and during the searches authorities seized:
- Bundles of cash
- Fake documents
- A luxury car
- Designer goods
One of the suspects, Gyunesh Ali, fled to Bulgaria but was later extradited back to the UK in February 2023.
Sentences
- Galina Dimitrova Nikolova: eight years imprisonment
- Stoyan Georgiev Stoyanov: four years
- Tsvetka Manolova Todorova: three years
- Gyunesh Magbule Ali: seven years and three months
- Patritsia Pancheva Paneva: three years and two months
Cooperation between Authorities
A ‘benefit factory’ is a term used to describe a legitimate-looking business used to commit benefit fraud. Eurojust (European Union Agency for Criminal Justice Cooperation) and a joint investigation team (JIT) were established between the UK and Bulgarian authorities to facilitate the cross-border investigation.