Fraudster must pay back £26m

VAT fraudster Craig Johnson (pictured) has been ordered to pay back £26 million or face a further 10 years in prison.

Johnson, who is serving a 12.5 year prison sentence for leading a crime gang that stole £138 million in a complex series of missing trader scams, received a Confiscation Order on November 20 forcing him to repay his proceeds from the crimes.

Described as living the ‘champagne lifestyle’ Johnson has had assets including a helicopter, a yacht and two properties, one a stately home, restrained by the courts.

“This is one of the largest thefts from public funds that has been brought before the courts,” said HMRC assistant director of criminal investigation Robert Alder.

“It has resulted in one of the longest prison sentences and one of the largest confiscation orders ever secured.

“Missing trader fraud remains one of our top priorities. Stringent and robust action will continue to break up these criminal gangs, take away their liberty as well as their illicit gains.”

Using a series of fake companies the gang reclaimed VAT on mobile phones it was supposedly exporting before bringing them back to the country, filtering them through a series of ‘buffer’ companies before they were sold on to a ‘missing trader’, who then disappeared before paying the VAT.

Two other members of the gang also received Confiscation Orders. Stephen Lipinski was ordered to pay back £376,540 or face an extra 3.5 years in prison over his 6 year sentence and Linda Wragg, who attempted to provide a legitimate cover for the crimes, has to pay back £88,685 or serve an additional 21 months on top of her 6.5 years in jail.