| Barrister jailed for £17.5m VAT fraud |
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| Written by Adrie van der Luijt | |
| Tuesday, 01 July 2008 | |
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A barrister has been jailed for five years for VAT fraud and a bogus aircraft engine deal.
John Wilmot's claims that he was not knowingly involved in the attempted VAT fraud were rejected during the trial at Southwark Crown Court. Judge Taylor, said in passing sentence that it was an audacious attempt to obtain a large sum of money by fabricating evidence. Wilmot, a Nigerian national, was also recommended for deportation upon completion of his sentence and was also disqualified as a company director for eight years. Repayment claim Robert Gray, assistant director at the Criminal Investigation Directorate, said that Wilmot chose to abuse his privileged position to mount an extremely serious attack on the VAT system. “This massive fraud would have worked were it not for HM Revenue & Customs's (HMRC) rigorous checking of VAT repayment claims together with the diligence of local HMRC staff,” he added. Wilmot claimed to be a barrister specialising in shipping, aviation insurance and international tax laws. He was arrested following an investigation triggered by his first VAT return as a repayment claim for over £17.5 million. Discrepancies on his VAT return triggered checks and a call on his Temple Chambers offices by an HMRC VAT officer. Wilmot tried to explain that the massive VAT repayment claim was due to the £100 million purchase of jet engines from a UK company, Aircraft Unit Engineering Ltd, which he had sold to an Iraqi businessman. He also claimed the engines were shipped on the Heroi Strakhorskyi, from Southampton on 12 December 2006 for the port of Umm Quasr, Iraq. VAT number belonged to Argos Wilmot provided paperwork for sales and shipping but was unable to show any bank accounts relating to payment for the engines. Further enquiries showed the VAT number on the invoice from Aircraft Unit Engineering Ltd was a redundant VAT number belonging to the Argos Catalogue company. The Aircraft Unit Engineering company does exist but its declared VAT returns show its sales are not of the magnitude of the alleged sale to Wilmot. A search of the manufacturer's website for the jet engines revealed they are valued at around $9 million (approximately £4.8 million each), considerably below the £25 million which Wilmot claimed to have sold them. The Heroi Stakhorskyi departed Southampton docks on 12 December 2006 but the ship manifest recorded its cargo as new crop beans but no engines. The ship was bound for the Black Sea via Gibraltar, Malta, Egypt and Turkey not the Iraqi port of Umm Quasr. Trade fair Wilmot claimed he arranged the deal through an Iraqi national, Al Majari of Basra, and that he found a supplier by visiting a trade fair in Excel in London, and that he had arranged to inspect the engines in a London warehouse. A search of Wilmot's office, where he had been living, uncovered a laptop computer which was forensically examined and found to have been used in the creation of the purchase and sales invoices, export documents and contracts. Wilmot explained this by saying that he had scanned the invoices when he received them. Forensic examination showed the laptop had been used to create them. The company in Croydon that allegedly sold Wilmot the engines stated that they had never heard of him, nor do they sell aircraft engines, nor exhibited at the Excel centre. Al Majari has never been traced. Wilmot had pleaded not guilty to VAT fraud. The case was prosecuted on behalf of HMRC by The Revenue & Customs Prosecution Office (RCPO) which was created by Royal Assent on 7 April 2005 and is an independent prosecuting authority reporting directly to the Attorney General. Related articles
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