Four con men have been jailed for after they set up a string of bogus companies to commit a £400,000 VAT fraud.
Andrew Mackenzie, 49, from Newbridge, his brother Jonathan Mackenzie, 36, from Ystrad Mynach, Nathan Watson, 25, from Hengoed and David Fox, 29, from Brynmawr, all used fake aliases to set up the companies in the Rhymney Valley to fraudulently claim VAT repayments.
They all received jail sentences totalling nearly seven years at Cardiff Crown Court on Monday, October 2.
When Jonathan Mackenzie, Fox and Watson were arrested by HM Revenue and Customs (HMRC) officers during a raid in April last year, Andrew Mackenzie was nowhere to be seen.
HMRC investigators tracked him down in July 2016 on the island of Sark – where he had been renting a chalet and working in a shop under the name of Alan.
Investigators discovered it wasn’t the first time Andrew Mackenzie had re-invented himself.
In 2008, in an effort to launch a TV career, after being given a suspended sentence for fraud, he presented a number of short films interviewing himself, ‘Dru Mackenzie’, in which he claimed he had turned his life around, was running legitimate businesses and that “he paid his taxes”.
HMRC investigators found that Andrew Mackenzie had submitted more than £135,000 worth of fake VAT repayment claims on behalf of three companies – Antelope Green Fuels Ltd, Antelope Vehicle Rentals and Ystrad Mynach Car Auctions, between February and November 2013.
Jonathan Mackenzie, admitted submitting fake repayment claims totalling £75,000 for his company, Astalon Ltd.
But the fraud did not stop there and, while on bail, Andrew recruited Watson and Fox and set up another six companies using fake names.
Between them they claimed a further £190,000 in fraudulent VAT repayments.
Mackenzie’s persistent offending was uncovered by an HMRC VAT taskforce, set up to identify those who seek to avoid paying VAT.
Although using a fake name, a HMRC officer working on the earlier investigation, recognised Andrew’s voice when he contacted HMRC trying to get payment for the fraudulent VAT claims and was then able to link Mackenzie to additional offences. Before he was brought before the courts, Andrew went on the run and a warrant was issued for his arrest.
Colin Spinks, Assistant Director, Fraud Investigation Service, HMRC, said: “It’s clear Andrew Mackenzie thought nothing of lying and deceiving people. These defendants were intent on committing fraud, thinking it was easy money.
“They knew they were defrauding taxpayers, funding lifestyles well beyond their legitimate incomes believing their trail of false paperwork would hide their frauds.
“HMRC is determined to clamp down on attempts to steal public funds and this result sends a clear message to anyone trying to cover up a tax fraud – no matter how you try to conceal it, you will be caught.
“Mackenzie went on the run to avoid the consequences of his criminal activity, but we go as far as necessary to track down and bring criminals to justice.”
Using the stolen identities of Eric Harvey, Aaron Burrell and Andrew Barnes, Andrew set up Newbridge Coffee Co Ltd; Ayamaya Hotels and Leisure Ltd; Summit Commercial Build Ltd; Newbridge Travel Ltd and Newbridge Convenience Store, and with his brother Jonathan, he set up Charles Maddison Accountants Ltd. Together with Watson and Fox he set up another fake company, Foxson Travel Ltd and with Fox he set up Fox Entertainment and Event Management Ltd.
In addition to committing VAT fraud, Andrew Mackenzie fraudulently claimed Working Tax Credits, totalling £2,018.05 in the name of Eric Harvey from November 2015.
The total value of all the frauds was £403,063.48.
Sentencing at Cardiff Crown Court, His Honour Judge Jonathan Furness described Andrew Mackenzie as “the leading light in the various escapades.”
Andrew Mackenzie was jailed for three years and five months after admitted 11 charges of VAT fraud and one charge of tax credit fraud.
Jonathan Mackenzie pleaded guilty to three counts VAT fraud and was sentenced to 12 months in jail.
Nathan Andrew Watson pleaded guilty to one count of VAT fraud and was sentenced to eight months.
David Kevin Fox admitted two charges of VAT fraud and was handed a 21-month jail sentence.