Scams & Scandals: Who were the gang members involved in Britain’s biggest case of benefit fraud?
FIVE scammers orchestrated benefit fraud on a scale never seen before in the UK, swindling the UK government of over £53 million in Universal Credit claims.
The case is featured in an episode of the Beeb’s Scam’s & Scandals — here’s everything you need to know.
Who were the gang members?
Galina Nikolova
Nikolova was one of the masterminds behind the fraud scheme.
She was found to be responsible for £25million in losses to the taxpayer and received the longest sentence for her involvement.
Nikolova operated from an unassuming shop called Antonia Food in north London, which served as a front for their fraudulent activities.
Stoyan Stoyanov
Even after the gang was arrested, Stoyanov continued to make fraudulent claims.
In total, he defrauded the taxpayer of a further £17,000 while under investigation.
His role in the conspiracy was to “act as a conduit for those higher up in the chain”.
Stoyanov and Nikolova were in a relationship.
Gyunesh Ali
Ali played a “leading role” in the gang.
Following being released under investigation after his arrest, he fled to Bulgaria.
But on February 25, 2023, Ali was extradited back to the UK so he could face trial.
During the trial, Judge David Aaronberg KC said: “You played a leading role in a scheme that was complex and sophisticated in nature.
“Your offending lasted for some four and a half years and you were involved in a vast number of false declarations.”
The court was told the gang poked “fun at the naivety of the Department of Work and Pensions in relation to the fraudulent claims”.
Evidence included shocking footage even showed one of Ali throwing cash on the floor for an unknown woman to pick up as part of a “game”.
Tsvetka Todorova
Todorova’s role in the scheme involved in creating false identities and forging documents to support fraudulent claims.
Like Ali, she also attempted to flee the country, but was arrested at Stansted Airport.
Patritsia Paneva
Paneva was recruited by Nikolova when she was just 19.
She was initially paid only £80 per day by the gang for her involvement in the scam.
During the trial, Paneva wept as she was sentenced.
Sophisticated scheme
The gang’s operation was sophisticated and extensive, taking a total of £53,901,959.82 in Universal Credit payments over a period of nearly five years.
The Bulgarian fraudsters operated on an “industrial scale” out the back of three corner shops in Wood Green, North London.
They used real people and stolen identities to make the fraudulent claims, which were backed up with falsified documents.
If their claims were denied, the brazen gang just persistently re-applied until they were approved.
They set up three “benefit factories” across London, where they created fake documents to support fraudulent Universal Credit claims.
The sophisticated scheme involved the group using a library of fake identities used to make fraudulent claims.
Each claim was allocated a different mobile number and came attached with a litany of fake documents, including tenancy agreements, counterfeit payslips.
Forged letters from GPs, landlords, and employees were also used to bolster the claims.
Some of the claims were also made using details from real people, who would pay the gang to use their identities to make the claims on their behalf.
The gang used Photoshop to create fake images when the Department for Work and Pensions (DWP) requested proof of residence.
The Universal Credit was paid into hundreds of different bank accounts and then withdrawn by the criminals at the bank.
They then laundered the money between various accounts via multiple transfers and cash withdrawals.
The gang even went as far as transporting thousands of Bulgarians to London to make fraudulent claims.
They would often allow the initial benefit payment to go to the claimant, but then collect the recurring monthly payments for themselves.
Investigation
The fraud was uncovered after a two-year investigation by counter-fraud officials at the DWP.
When authorities raided Nikolova’s property, they discovered £750,000 in cash hidden under beds, behind fridges and in suitcases.
The investigation also revealed luxury cars, designer goods and hundreds of “claim packs” containing forged documents.
Nikolova, 38, Stoyanov, 27, Todorova, 52, Ali, 33, and Paneva, 26, all pleaded guilty to fraud and money laundering related offences.
The Crown Prosecution Service (CPS) and DWP are still pursuing confiscation proceedings to recover as much of the stolen money as possible, including assets potentially hidden in Bulgaria.
It is considered the largest benefit fraud prosecution ever brought to courts in England and Wales.
Specialist CPS prosecutor Ben Reid said: “These defendants conspired to commit industrial-scale fraud against the Universal Credit system.
“Submitting thousands of false claims, the organised criminals enriched themselves from government funds designed to protect and help the most vulnerable people in our society.”
Prison
The members of Britain’s biggest benefit fraud gang were jailed on May 30, 2024, at Wood Green Crown Court.
Their sentences were as follows:
- Galina Nikolova — 8 years imprisonment
- Gyunesh Ali — 7 years and 3 months imprisonment
- Stoyan Stoyanov — 4 years imprisonment
- Tsvetka Todorova — 3 years imprisonment — released on licence due to time served
- Patritsia Paneva — 3 years and 2 months imprisonment
The combined total of their sentences amounts to more than 25 years.
Scams & Scandals: Britain’s Biggest Benefit Scam
The elaborate scheme orchestrated by the gang is featured in BBC series Scams & Scandals.
Titled Britain’s Biggest Benefit Scam, the episode explores their methods and the investigation leading up to their arrest, as well as the implications of their actions on society.
To watch the true crime doc, tune in to BBC Two on Wednesday, November 27, 2024, at 8 pm.
It is also available on iPlayer.