Minister Applauds Convictions of Gang Attempting £50 Million Universal Credit Fraud
Five Bulgarian nationals have been sentenced to lengthy jail terms for fraudulently claiming over £50 million in Universal Credit payments.
The convictions of a Bulgarian gang for the largest benefit fraud in England and Wales have been welcomed by Work and Pensions Secretary Mel Stride. Galina Nikolova, Stoyan Stoyanov, Tsvetka Todorova, Patrisia Paneva, and Gyunesh Ali pleaded guilty to fraud and money laundering at Wood Green Crown Court in north London and are set to be sentenced next month. All five individuals are Bulgarian nationals.
An investigation by the Department of Work and Pensions (DWP) uncovered three benefit factories in London used by the gang. Benefit factories are businesses created solely for conducting benefit fraud while masquerading as legitimate operations.
Mr. Stride expressed his pride in the DWP investigators and the CPS for dismantling this organized crime group that stole millions. He emphasized the government’s commitment to tackling fraud and ensuring fairness in the welfare system.
Stride: ‘We Are Clamping Down on Fraud’
Mr. Reid, a specialist Prosecutor for the CPS, revealed that this case marks the largest benefit fraud prosecution in England and Wales. The defendants conspired for years to defraud the Universal Credit system on an industrial scale, resulting in a cost to taxpayers exceeding £50 million. The CPS will initiate confiscation proceedings against the defendants to recover the criminal benefits obtained through this enterprise.
The gang perpetrated thousands of false claims between October 2016 and May 2021, using stolen identities or the details of real individuals. These claims were supported by forged documents such as fake tenancy agreements, counterfeit payslips, and forged communications from landlords, employers, and physicians.
Following their arrests in May 2021, searches at various properties discovered numerous forged documents and cash, leading to the conviction of the defendants. Ali, believed to be the ringleader, fled to Bulgaria while on bail but was later extradited to the UK. The other defendants pleaded guilty earlier this year after being presented with a substantial amount of evidence, including encrypted messages from seized digital devices.
The convictions highlight the success of collaboration between investigative agencies in combatting benefit fraud and holding perpetrators accountable for their actions.
