Public Sector

More than half of all company directors struck off in Britain in the past 15 months were involved in alleged fraud or abuse of Covid-19 financial support schemes, official figures have revealed.

There were 1,200 directors disqualified between 1 April last year and 30 June this year, with 611 of the cases involving abuse of Covid-19 schemes, mainly in relation to taxpayer-backed bounce-back loans. About £1.1bn of loans have already been flagged as suspected fraud or error.

The owner of Fleetwood Town football club, Andy Pilley, has been jailed after being found guilty of fraud and money laundering totalling around £15 million.

He was sentenced to 13 years in prison at Preston Crown Court.

Ray Dorney talks us through Rockford Associates Limited’s Accounts Payable Recovery Audits used to detect and prevent overpayments in the public sector and beyond

The National Fraud Initiative (NFI) matches data from 1,300 public sector and 77 private sector organisations, including police authorities, local probation boards, fire and rescue authorities as well as local councils, NHS Trusts and other agencies. It flags up inconsistencies in data that may indicate fraud, errors, and potential overpayments, signalling the need for participating organisations to further review those findings, conduct internal investigation with Accounts Payable Recovery Audits and implement any necessary corrective actions – which is no small task.

The Department for Work and Pensions (DWP) has launched a plan to stop billions of pounds being lost in benefits fraud and error. The new drive will widen powers to include executing warrants, search and seizure of evidence, and even making arrests.

A total of 8,691 investigations into alleged benefit fraud were opened by the DWP up to the end of March 2023. It comes as more than 20 million people across the UK claim some form of benefit from the department, including Universal Credit and the state pension.

Ashfield District Council Leader Jason Zadrozny has been charged by police with fraud, money laundering, tax and possession of cocaine.

Mr Zadrozny, aged 42, of Sutton Road, Kirkby-in-Ashfield, faces 12 counts of fraud by false representation, five counts of money laundering, four counts of being knowingly concerned in the fraudulent evasion of income tax, and one count of possession of a Class A drug.

A new DWP fraud plan could see Universal Credit claims investigated. It is set to recruit 1,000 new agents to identify errors in existing Universal Credit claims.

https://www.coventrytelegraph.net/news/uk-world-news/new-dwp-fraud-plan-could-27116041

The Insolvency Service has secured the winding-up of 11 companies, one of which claimed to be registered in Shropshire, for their part in a scheme which orchestrated systematic fraud against UK taxpayers during the covid-19 pandemic.

https://www.thebusinessdesk.com/westmidlands/news/2074876-network-of-fake-companies-shut-down-following-bounce-back-loan-fraud

The Government is still being “too slow” to recover taxpayer money lost to fraud and error over the pandemic, MPs have said.

https://www.ayradvertiser.com/news/national/23569465.government-too-slow-recoup-taxpayer-money-lost-covid-fraud-error/

struggling college student who set himself up as a £300-a-time 'exam cheat for hire' so he could illegally sit driving theory tests on behalf of learner drivers has been jailed.

Olivier Yolo, 27, agreed to fraudulently take theory tests for cash at a series of DVSA centres across the the north of England, including in Bolton and Stockport, for learners who were due to take them feared they would fail.

The new team will stress test public sector fraud defences

The Cabinet Office announced the launch of a new specialist fraud squad, otherwise known as the Risk, Threat and Prevention Service, to help combat fraud in public services on 24 May, which will be led by the Public Sector Fraud Authority. The establishment of a new fraud squad is part of the government’s £1bn plan to reduce fraud against the public sector.

https://www.solicitorsjournal.com/sjarticle/government-launches-new-fraud-squad-to-combat-fraud-in-public-services