A gang of five Bulgarians have pulled off Britain’s biggest ever benefits fraud raking in almost £54million after using thousands of fake ID claims to fuel their luxurious lifestyles.
The crooks, who now face years in jail, used a combination of fake identities and real customers to make roughly 6,000 fraudulent Universal Credit claims during four-and-a-half year spree, operating out of three ‘benefits factories’ in north London.
One of the hubs was behind a functioning corner shop selling groceries. The group appeared to be hiding in plain sight – posting photos on social media smiling and posing behind the counter of Antonia’s Foods supermarket in Wood Green.
The enormous haul of money gained from their ‘complex financial web’ of claims was laundered through a number of accounts, then withdrawn in cash – with £750,000 in bank notes found stuffed in suitcases at one of their homes.
Investigators who arrested the gang and searched their properties also discovered hundreds of ‘claim packs’ containing forged and false documents, and more than 900 digital devices.
Prosecutors said the gang used the benefits system ‘like a cash machine’ and on one of the seized mobile phones was a video showing the fraudsters showering their flat with hundreds of £20 notes.
They used their ill-gotten gains to fund luxury lifestyles, buying designer clothes, watches and even a high-end Audi sports car. On social media they shamelessly flaunted expensive spa breaks and posted snaps of them holidaying abroad.
Galina Nikolova, 38, Stoyan Stoyanov, 27, Tsvetka Todorova, 52, Gyunesh Ali, 33, and Patritsia Paneva, 26, all entered guilty pleas at Wood Green Crown Court which were yesterday accepted by the CPS.
Two of the criminals – Galina Nikolova, 38, and Stoyan Stoyanov, 27 – pictured together in 2020 while on holiday in Turkey
Nikolova and Stoyanov, 27, are two of the five criminals involved in Britain’s biggest ever benefits fraud raking in almost £54million after using thousands of fake ID claims to fuel their luxurious lifestyles
Nikolova is also seen standing behind the counter of Antonia’s Foods in Wood Green, pouting at the camera alongside an unknown man
On Gyunesh Ali’s mobile phone that was seized, officers found a video showing the fraudsters showering their flat with hundreds of £20 notes
Their criminal convictions mark what is the largest benefit fraud prosecution and investigation ever brought to the courts in England and Wales.
The businesses the criminals operated claimed to assist people with obtaining a national insurance number and benefits to which they were entitled.
But between October 2016 and May 2021, the organised criminal group made about 6,000 fraudulent claims.
They were supported by forged documents including fictitious tenancy agreements, counterfeit payslips and forged letters from landlords, employers and GPs.
If any claims were rejected, the fraudsters would persevere until they were approved.
All five were arrested on May 5, 2021, as part of the Met’s Operation Volcanic but Ali fled to Bulgaria following his release under investigation.
He was extradited back to Britain in February last year and eventually admitted conspiracy to make false representations, possession of articles for use in a fraud and possessing criminal property.
As investigators searched through their homes they found hundreds of ‘claim packs’ containing forged and false documents were found and seized, as well as bundles of cash stuffed in shopping bags and suitcases, a luxury car and designer goods including watches, jackets, and glasses.
Patritsia Paneva, 26, (left) and Tsvetka Todorova, 52, (right) pleaded guilty alongside the four other criminals at Wood Green Crown Court yesterday
Gyunesh Ali, 33, pleaded guilty alongside the four other criminals at Wood Green Crown Court yesterday
The enormous haul of money gained from the claims was laundered through a number of accounts, then withdrawn in cash – with £750,000 in bank notes found stuffed in suitcases at one of their homes
They used their ill-gotten gains to fund luxury lifestyles, buying designer clothes, watches and even a high-end Audi sports car
When faced with the large amount of incriminating evidence which included encrypted messages, CCTV footage, forged documents, seized digital devices and bank statements, the defendants eventually all pleaded guilty.
All five will be sentenced at Wood Green Crown Court on May 28.
As they conducted their mastermind fraud, Nikolova would post on social media living a seemingly normal lifestyle, often cuddled up next to one of her partner’s in crime Stoyanov.
On one occasion throughout their criminal spree, the couple are seen posing at a spa in Manchester. In another they are seen holidaying in Turkey together. Nikolova also shared pictures of bunches of roses, gifted by her ‘love’.
Meanwhile, videos posted from Nikolova show her taking day trips to Aston Hall and going to see a match at Aston Villa’s stadium.
Nikolova is also seen standing behind the counter of Antonia’s Foods in Wood Green in June 2020, pouting at the camera alongside an unknown man.
The Bulgarian food shop, which sold a range of meats, cheeses and other delicacies, located on High Road, has accounts overdue with Companies House in the process of striking it off its register.
Specialist Crown Prosecution Service prosecutor Ben Reid said: ‘This was an industrial-scale fraud committed by an organised criminal group.
‘They carried out a sustained attack on a system designed to support the most vulnerable people in our society and treated it like a cash machine to fund their own lavish lifestyles.’
Stoyanov poses on social media with a red rose laid on him and a tattoo of a woman on his arm that looks like his co-conspirator Nikolova
Nikolova poses on her Instagram
Prosecutors said the gang used the benefits system ‘like a cash machine’. Pictured: Cash found during the investigation
‘These convictions mark what has been the largest benefit fraud prosecution and investigation ever brought to the courts in England and Wales.
‘For years, these defendants were involved in an organised criminal gang which conspired to create thousands of false claims for Universal Credit, at a staggering cost of more than £50 million to the taxpayer.’
Mel Stride, Secretary of State for the Department for Work and Pensions, which led the probe with the CPS, said: ‘Building on our success in preventing £18 billion going into the wrong hands in 2022/23, these convictions underline our commitment to protecting taxpayers’ money.’
Paul Maynard MP, the minister responsible for tackling benefit fraud, added: ‘Our investigators are working tirelessly to catch benefit cheats and this case builds upon our plan to save £1.3 billion on fraud and error.
‘At the same time, our Fraud Plan will help us implement a long-term strategy to minimise fraud and error and ensure value and fairness for the taxpayer.’
The CPS Proceeds of Crime Division will now pursue confiscation proceedings against the convicted gang members.
Meanwhile, the Government is currently legislating for new fraud powers which will allow the DWP to request data from third parties, such as banks, that could show signs of potential benefit fraud and potentially save the taxpayer up to £600 million over the next five years.
Universal credit was launched in April 2013 to replace six other benefits funds.
It provides monthly payments to people who are on low incomes or out of work.
The roll call of Britain’s benefit’s cheats:
Benefit fraud in Britain peaked at £8.6billion between 2021 and 2022, almost double what the levels they were at before the pandemic.
It has led to dozens of convictions over the last few years. Here, highlights some of the crooks:
Ethel McGill, 72
McGill was labelled ‘Britain’s worst benefits cheat’ when she swindled £750,000 by hiding her father’s death and faking dementia.
Ethel McGill, pictured, pretended she had dementia as part of a long-running benefits and disability fraud
It led to the amateur actress to being jailed for five years and eight months in July 2019 before being given an extra months on her sentence in 2020 for failing to pay back £200,500 of her ill-gotten gains.
At Liverpool Crown Court, McGill admitted hiding her late father Robert Dennison’s death for 12 years so she could claim his war pension and benefits.
On one occasion she got a friend to lie under a blanket and pretend to be him at her home in Runcorn, Cheshire.
The CPS said at the time that it was one of the ‘largest ever cases of benefit fraud by a single person’.
Ali Bana Mohamed, 42
Ali Bana Mohamed, 42, was jailed in 2022 for masterminding a decade-long scam to cheat taxpayers out of at least £1.7million
Mohamed, from Hulme in Manchester, faked the identities of almost 200 children to pocket public money.
He was jailed in 2022 for masterminding a decade-long scam to cheat taxpayers out of at least £1.7million.
He enlisted relatives and friends to assist him in submitting bogus claims under about 70 different names, using stolen identities of adults along with the fake birth certificates of 188 children.
All the fraudulent claims were made on the basis that the adult had care of named children and was entitled to child benefit and tax credits.
Mohamed admitted 29 fraud offences and was sentenced to three and a half years in prison in 2022. Last year he was ordered to repay more than £2million.
Neil Filer, 46
Filer pocketed nearly £30,000 of taxpayers’ money after falsely claiming he had an array of serious medical conditions – then splurged the cash on cocaine and a lavish lifestyle.
Neil Filer (pictured) pocketed nearly £30,000 of taxpayers’ money after falsely claiming he had an array of serious medical conditions
He told the Department for Work and Pensions he had diabetes, epilepsy, multiple sclerosis and right-sided weakness after a heart attack – adding that his health was so bad he could walk only short distances.
The crook insisted he needed help with washing, bathing, dressing, preparing food, reading and remembering to eat, leading to extensive claims under the Personal Independent Payments scheme.
Meanwhile, on social media he made ‘boastful’ posts about an action-packed holiday to Orlando, Florida, with pictures showing him unaccompanied on a ’90ft drop slide’ at a waterpark and on a roller-coaster.
Filer pleaded guilty to a single count of fraud, claimed £29,245 over four years and nine months. He was likened to Little Britain character Andy Pipkin, who pretended to be disabled, after he was jailed for 11 months.
Mercedes Bradley, 33
Former Virgin Atlantic air stewardess Mercedes Bradley defrauded the taxpayer for £10,000 in benefits even though she had £48,000 in a secret bank account
Former Virgin Atlantic air stewardess Bradley claimed Universal Credit benefits even though she had £48,000 in a secret bank account where she received payments from ‘ex-boyfriends’ – one of whom transferred her more than £30,000.
She admitted was of dishonestly failing to notify the Department for Work and Pensions (DWP) of capital savings or investments which would affect entitlement to Universal Credit between March 26 2020 and August 28 2021.
During this time she splashed cash on a boob job, other cosmetic surgery and a Peloton exercise bike. She was sentenced to 150 hours of unpaid work in November 2022.