Five Bulgarian Nationals Convicted in £54 Million Benefit Fraud Scam

A group of fraudsters is set to be imprisoned after being found guilty of stealing nearly £54,000,000 in benefits.

The group, consisting of five Bulgarian nationals, obtained over £50,000,000 through fraudulent Universal Credit claims using fake identities or real people’s information.

Galina Nikolova, 38, Stoyan Stoyanov, 27, Tsvetka Todorova, 52, Gyunesh Ali, 33, and Patricia Paneva, 26, all admitted to charges of fraud and money laundering related to their involvement in a massive scam targeting the benefits system.

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This incident is being described as Britain’s largest-ever benefit fraud, according to the Crown Prosecution Service (CPS).

Operating between October 2016 and 2021, the organised crime group submitted thousands of false claims, using fabricated documents such as tenancy agreements, counterfeit payslips, and forged letters from landlords, employers, and doctors to support their claims.

When faced with rejections, the group persisted by repeatedly submitting applications until approved. Investigators discovered that the group had established three ‘benefit factories’ in London to generate these fraudulent claims.

These factories, under the guise of assisting people with acquiring national insurance numbers and entitled benefits, instead processed claims that were then handed over to the criminal group for exploitation.

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All five will be sentenced at Wood Green Crown Court on Tuesday, May 28, 2024.

The court proceedings revealed how the illegally obtained funds were subsequently laundered through multiple account transfers and cash withdrawals until they could be utilised legitimately.

The defendants were initially apprehended on May 5, 2021, following extensive property searches that yielded numerous forged documents, stacks of cash, a luxury vehicle, and high-end goods such as Rolex watches.

One of the defendants, Gyunesh Ali, attempted to evade justice by fleeing to Bulgaria after being released under investigation. However, he was eventually captured and deported back to the UK on February 25, 2023.

The fabricated claims amounted to approximately £53,900,000, as reported by the Department for Work and Pensions (DWP). Faced with overwhelming evidence, including encrypted messages, CCTV footage, forged documents, and financial records, all defendants ultimately pleaded guilty.

The CPS highlighted the extensive efforts involving cooperation between prosecutors, the DWP, and international partners to successfully dismantle and prosecute the organised crime group.

Mel Stride MP, Secretary of State for the Department for Work and Pensions, commended the collaborative effort and reaffirmed the commitment to protect taxpayer money, citing savings of at least £18 billion in the 2022/23 period through anti-fraud measures and benefit checks.