In a major crackdown, authorities discovered suitcases filled with cash, luxury items, and a lavish vehicle at the homes of the accused. One group member was even recorded flaunting piles of £20 notes. Five individuals involved in a scheme that falsely claimed over £53 million in benefits have been sentenced to a combined 25 years in prison.
This case is considered the largest instance of benefit fraud and money laundering in England and Wales, with the perpetrators submitting numerous fraudulent universal credit applications using both stolen and real identities.
Gyunesh Ali, 34, was implicated in the large-scale fraud alongside Bulgarians Galina Nikolova, 39, Stoyan Stoyanov, 28, Tsvetka Todorova, 53, and Patritsia Paneva, 27, as detailed by Judge David Aaronberg KC.
At the Wood Green Crown Court in London, the group was sentenced to a total of 25 years and five months after pleading guilty to various charges of fraud and money laundering.
The court also warned that they might face deportation after serving their sentences. The judge commended the Department for Work and Pensions (DWP) for their significant efforts in prosecuting the gang.
During property raids, authorities discovered large sums of money hidden in shopping bags and suitcases, along with a luxury vehicle and various designer items, according to the Crown Prosecution Service (CPS).
Additionally, footage was found showing a gang member frivolously tossing £20 notes into the air.
Investigators uncovered three “benefit factories” in London, where the accused allegedly assisted people in obtaining national insurance numbers using “claim packs” containing forged and false documents, according to the CPS.
The trial revealed that the fraudsters not only orchestrated the scam but also coached claimants on how to deceive the system. After the claims were filed, the gang took control, channeling the illicit funds through various bank accounts.
Ali and Nikolova were identified as the main architects of the fraud. The judge noted that the maximum sentence for their crimes is capped at 10 years, but he would consider their guilty pleas, time served, and other mitigating factors. Ali received a seven-and-a-half-year sentence for his role in the fraud, including conspiracy to make false representations, possession of items for use in fraud, and holding criminal property. The judge highlighted his central involvement in the elaborate and intricate scheme, which spanned over four years and involved numerous fraudulent claims.
After initially fleeing to Bulgaria following his arrest, Ali was extradited back to the UK in February 2023. Nikolova, whose actions led to a £25 million loss to taxpayers, was sentenced to eight years in prison.
Todorova received a three-year sentence but was set for early release on license due to time served in custody and under house arrest. During the trial, it was revealed that Todorova and Nikolova had attempted to flee the UK after their May 2021 arrests but were unsuccessful.
Paneva, who was 19 years old and paid £80 daily to participate in the scheme, was sentenced to three years and two months in prison.
Stoyanov, who admitted to multiple charges, received a four-year prison sentence.
The court is expected to issue a surcharge order at an upcoming confiscation hearing.