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Fake tax agent sent down for two years

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14th Sep 2011
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A South African national who attempted to steal around £5m through tax fraud has been jailed for two years by the Old Bailey.

The man, Lawrence Goldberg, set up dozens of fake tax agent companies and hijacked identities to send thousands of fraudulent self-assessment tax returns to HMRC. He managed to steal £1m through the activity, with a further £4m prevented from being out by HMRC investigators.

According to the Department, the 47-year old filed over 2,000 false tax returns during the course of the fraudulent operation.

In April he was extradited from South Africa, where he’d run to after taking relocating to Portugal, and pleaded guilty to the charges in June. The Old Bailey sentenced Goldberg to four years behind bars, but this was reduced to a two year sentence following his time on remand in South Africa.

“This was fraud against public funds on a huge scale,” said John Pointing, assistant director of criminal investigation for HMRC. “HMRC will not stand by while crooks like Goldberg steal money paid by honest taxpayers that is needed for vital services in our communities. The extra £900m being invested in HMRC by the government will help us step up the fight against criminals and stamp out tax fraud.”

Goldberg’s extradition marked the first time such a move has  been made between the UK and South Africa.

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Replies (10)

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By johnjenkins
15th Sep 2011 10:32

In all probability

he will be out in a year doing it again making sure he doesn't make the same mistakes.

What is really worrying is he managed to get away with it for so long and managed to set up fake agents - what chance "self serve". It does seem that it's mainly foreigners that get away with huge amounts whilst UK tax payers are jumped on for a few hundred quid!!!!!!!!!!!!!

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By The Black Knight
16th Sep 2011 12:30

hear hear John

Pretty pathetic really. You have to wonder ?

Was this the primary purpose for online SA ? etc

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By dwgw
16th Sep 2011 12:37

What happened to the £1m he stole?

Has that been recovered?  Can it be recovered?  Is anyone trying?

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By The Black Knight
16th Sep 2011 13:45

own identities ?

Do they only catch the daft who have :

1. used their own identities

2. do not have an exit plan

3. do not keep moving

4. not used a swiss account

5. not covered their tracks very well.

There must be some clever criminals out there ?

 

dwgw ? no confering and no you don't get 10 points cause it's too easy a question ! s

 

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By ShirleyM
16th Sep 2011 14:10

So ... time wise

He's spent time on remand, and has a 2 yr sentence, which probably means he will be out in less than a year (for good behaviour) ... I wonder what his hourly rate will work out at?

And let's not forget the costs to our country of bringing him to justice in the first place.

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By pawncob
16th Sep 2011 14:37

Who's to blame?

This wouldn't happen if HMRC got their act together. Why make repayments to fictional people etc? How long must it go on before someone (computer) spots it?

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By ShirleyM
16th Sep 2011 15:02

Good point Pawncob

Do HMRC do any MLR identity checks on people applying to be agents, or even for MLR registration?

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By taxbakbristol
16th Sep 2011 15:06

£1million for 1Year ...who said crime does not pay!

The mind boggles how he managed to get refunds from HMR&C....I wish they paid me as easily !!!

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By johnjenkins
19th Sep 2011 11:01

I have it

on good authority that no MLR checks are made. HMRC don't even know who is or who isn't registered. So what are those MLR registered Accountants paying for???????????? Oh yes it's to go towards all the millions that fraudsters (not tax avoiders) are getting away with.

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By The Black Knight
19th Sep 2011 11:19

Just the road we are headed down

You can form a company with fake names etc as well ! LOL

It really is a joke and about to get worse with tax simplification.

Unless you believe in sheer stupidity this is a deliberate road map for tax fraudsters.

One gets the feeling that the government don't care how much tax it costs so long as the accountancy profession is (dealt with) by passed. A bit like getting rid of coal mines to defeat the unions.

IF you don't have an accountant, you can decide how little tax you pay (self assesment), perhaps none if companies house help you out and strike off your company before HMRC collect.

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