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Lay preacher jailed for £51m VAT fraud

Friday, 30 November 2007

A lay preacher and lecturer in law, pretending to be a solicitor and using a bought Lordship, has received two prison sentences totalling ten years at Nottingham Crown Court.

Malcolm Edwards-Sayer was jailed for his part in a major conspiracy to steal £51 million from the public purse in a sophisticated VAT fraud.

An intense investigation by HM Revenue and Customs (HMRC) uncovered his role as the main player in the elaborate scam, in what has become known as carousel or 'missing trader' fraud, and to launder the proceeds of crime.

This involved the dishonest manipulation of the VAT system through the import and export regime, principally of mobile phones over an eighteen month period.

Fast and easy profits

Nick Burriss, director of operations at HMRC’s criminal investigation unit, explained that this was not some kind of victimless crime, but organised fraud on a massive scale perpetrated by criminals all bent on making fast and easy profits at the expense of the British taxpayer.

“This was theft of revenue needed to fund our country's public services. Missing trader fraud is not merely a paper fraud but often features links to other forms of serious and organised crime which brings devastation to our communities,” he added.

The fraud involved the purported import of mobile phones and computer chips from various EU countries, VAT free. The goods would then be sold on more cheaply, but with VAT added, through a chain of companies.

Once the goods had been sold on a number of times they would be exported back to EU countries. The companies would then default or go 'missing' before making their VAT repayments to HMRC.

Judge Teare said on sentencing, "You were diligent and dedicated in carrying out this fraud. You persisted in defrauding the nation and offered these services to others to help them commit fraud. You are a 49-year old adult and when you look back at your lifetime, it's filled with crime."

Lord Houghton

Edwards-Sayer, 49, bought a Lordship in the name of Lord Houghton and attempted to open offshore accounts in this name.

While on remand he received a six months prison sentence for contempt of court in October 2005 for 18 breaches of a restraint order. These breaches included using the accounts belonging to his parents.

He pleaded guilty and was sentenced to six and half years in prison. He was charged with eight counts of conspiracy to cheat the public revenue and for money laundering. He was also disqualified from being a director for 12 years.

The conman facilitated the fraud through his control of a number of companies based in the UK and Gibraltar. He failed to pay VAT to HMRC of over £51 million. At the time of his arrest he was lecturing in law at South East Derbyshire College. He was also a part-time lay preacher with the diocese of Southwell.

Edwards-Sayer traded as Barclay Devere in Nottingham, Greenday Wholesale and Swift Online in Stoke and Storm Promotions in Coventry.

Confiscation order

He also received a further three and half years to run consecutively for 16 counts of deception on charges brought by Nottingham Police for pretending to be a solicitor. A confiscation order has been applied for and will be heard next year.

A Newark woman, Rachel Horton, previously pleaded guilty and was sentenced for laundering £1 million of the fraud under the proceeds of crime act.

The case was prosecuted by the Revenue and Customs Prosecutions Office (RCPO). RCPO is an independent prosecuting authority that reports to the attorney general and is responsible for the prosecution of all HMRC cases in England and Wales.

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