Here to help, not to judge
Call us on 0800 011 9625
September's round up of the latest tax investigation news and cases:
Myck Djurberg, 64, has been sentenced to 12 years in prison for his role in a fraudulent scheme involving the sale of houseboats with illegal berths on the Thames. The sentencing took place at Kingston Crown Court on 27 March.
Djurberg, the owner of Hampton Riviera Boat Yard, devised a scheme to sell high-end houseboats to investors looking for permanent homes near Richmond. He purchased the boatyard in 2011 with plans to transform the riverside plot into a leisure marina resort. Over time, he built luxurious houseboats, some as tall as three storeys, and sold five of them for a total of £3.5 million.
However, Djurberg failed to obtain the necessary planning permission and mooring permits to legally offer these boats as permanent residences. While he falsely advertised and sold permanent moorings with the houseboats, he had only secured permission for leisure mooring, not residential use. Additionally, he neglected to pay required licence fees to the Environment Agency.
Richmond Borough Council served notices on Djurberg, prompting him to remove some of the pontoons associated with the illegal moorings.
Andrew West, specialist prosecutor for the Crown Prosecution Service (CPS), commented: "Djurberg did not have planning consent in place to use boats for residential purposes, as dwellings nor for commercial business occupation. Despite this, he fraudulently sold five houseboats, financially gaining from the misfortune of his customers. Following this conviction, we will pursue confiscation proceedings to ensure that Djurberg pays back the money he gained through this criminal operation."
Djurberg was convicted of three counts of fraud by false representation and one count of fraud but was acquitted of a fifth charge.
In 2017, Djurberg had also been convicted of misrepresentation and breach of contract and was ordered to repay £1.8 million for the sale of two other houseboats.
A man from Bath has been sentenced to six and a half years in prison for defrauding a friend and their family in a £4.6 million spread betting scam. Jeff Arundell, convicted of multiple offences including fraud and money laundering, carried out the financial crimes in 2016 and 2017.
In addition to the spread betting scam, Arundell was sentenced for a separate fraud offence involving the misuse of power of attorney to take approximately £260,000 from his now late mother’s estate. He used the stolen funds to buy a Bentley and fuel further spread betting activities.
On 31 October, Arundell was sentenced at Bristol Crown Court for his fraudulent activities.
The scam began in November 2016 when Arundell persuaded a friend to invest in what he described as a guaranteed money-making opportunity. He claimed to have insider knowledge that shares in a pharmaceutical company would soon increase in value and assured his friend—and the friend’s family members who also invested—that he would personally guarantee their investments. Arundell received approximately £100,000 to invest on their behalf.
In December 2016, Arundell used the money for various spread betting trades, but within weeks, he informed his victims that he had lost their money and could not repay them despite his previous guarantee.
However, a police investigation later revealed that Arundell had actually profited from some of the trades he placed in December 2016 but lied about losing the money. He continued trading with the winnings, which eventually helped him amass £4.6 million by August 2017.
The fraud was reported in January 2017 by the victims, prompting a police investigation. Arundell claimed that he could have honored the repayment guarantee because he had received £100,000 from his late mother’s estate earlier that year.
The friend who lost money commented, "He got what he deserved," adding that Arundell’s actions caused "a lot of grief and heartache" for him and his family.
Dr. Kirstie Cogram, manager of the serious and organised crime investigation team at Avon and Somerset Police, stated, "Arundell portrayed himself as an experienced trader in the financial markets. He seemingly thought little of defrauding his own family by taking cash from his elderly mother, nor using money from a friend and their family to bankroll his spread betting efforts. His actions were deplorable and made all the worse for his victims by misleading officers and refusing to admit to what he had done."
Cogram added, "While these verdicts and prison sentence will no doubt be welcomed by his victims, they do not take away from what they have been through. A proceeds of crime hearing will take place at a later date to ensure he does not profit from his offending; his assets are currently frozen pending that decision. We hope this will provide his victims with some financial recompense."
A grandmother from Aberdeen has been sentenced to prison after stealing £1.5 million from the family-run scrap metal business where she worked by fabricating invoices.
Coleen Muirhead was sentenced at the High Court in Edinburgh after pleading guilty to embezzling £1,524,192 from Panda Rosa Metals, where she worked as an administrative assistant in the finance department. Muirhead used the stolen money to fund an extravagant lifestyle, which included luxury family holidays, new cars, two static caravans worth £78,000, and expensive auction purchases. She also splurged on full tables at charity events and bought alcohol for attendees.
Her fraudulent scheme came to light when she bragged about her lifestyle to a colleague responsible for paying company wages. The colleague became suspicious, as Muirhead’s lavish spending seemed inconsistent with her salary. At the same time, a separate review of the company’s finances was launched due to concerns over falling funds.
During the review, it was uncovered that Muirhead had been processing invoices for a fake customer, ‘G Anderson,’ and depositing the funds into her own bank account. Five company accounts were found to contain her personal banking details.
Prosecutors explained that Muirhead was responsible for managing invoices for specific clients. As part of the financial review, senior company officials discovered that ‘G Anderson’ was listed as a significant customer, though none of them had heard of the client. Upon further investigation, the financial details for ‘G Anderson’ were found to match Muirhead’s bank account information. Police were then alerted.
Officers searched Muirhead’s home on 9 October 2021, finding documents that linked her to lavish spending. On the same day, she sent a WhatsApp message to a colleague admitting her wrongdoing: “I have done Panda Rosa out of a lot of money. I was G Anderson. Police have just raided! Please don’t think the worst of me.”
During the trial, defence solicitor advocate Kris Gilmartin stated, “This offending behaviour started off as a small matter and escalated quickly. She is remorseful and regrets the offending. She acknowledges she has brought shame to her family.”
Moira Orr, head of homicide and major crime for the Crown Office and Procurator Fiscal Service (COPFS), commented, “Fraud and embezzlement are not victimless crimes. This was a blatant example of someone targeting a business and then carrying out a significant embezzlement. Coleen Muirhead showed no regard for the impact her crimes would have on her employers."
Orr added, "Financial crime cases can be complex, but the evidence presented by prosecutors made the criminal activity clear and resulted in a conviction. This case demonstrates the ability of COPFS to effectively prepare and prosecute crime of this nature and sends a strong message to others involved in this kind of criminal behaviour.”
Muirhead will now be subject to a confiscation order under the Proceeds of Crime Act, with a hearing scheduled for January.
A former HMRC officer has been handed a suspended sentence after diverting £56,000 of taxpayers’ money into his personal accounts, as revealed by a HMRC tax investigation.
Matthew Shirley, from Southsea, abused his position at HMRC, where he had access to individuals' bank details. He exploited his role by transferring funds intended for the relatives of deceased individuals into his own accounts, falsifying records to cover up the theft.
At Portsmouth Crown Court, Shirley received a two-year suspended sentence for conspiring to steal £54,000 by manipulating accounting records to show that the funds had been paid to the correct recipients.
The fraud took place over two years, from January 2019 to May 2020, but Shirley’s actions were uncovered when HMRC launched an investigation into a suspicious £10,000 payment, prompting his managers to realise something was amiss.
Shirley had worked at HMRC for five years as a personal tax operations officer and was responsible for issuing tax rebates. Prosecutor Alex Lloyd explained, "Mr Shirley was employed by HMRC as a personal tax operations officer. It was part of his job to issue refunds or rebates. Mr Shirley noticed an account was dormant because someone was outside of the country or had passed away. He would report the money paid to the person but would pay it to one of his two accounts."
During sentencing, Judge William Ashworth remarked, "There is no explanation for your behaviour other than greed to provide goods and treats that you couldn’t afford. The money has all been dissipated. Ultimately, that is money we all contribute to and money that is vital for public services."
Shirley’s suspended sentence means he will avoid immediate jail time but will face restrictions and oversight as part of his punishment.
Get in touch with us for confidential and no-obligation tax advice.
Call us on:
0800 011 9625
Email us at:
scott.gilbert@gilberttax.co.uk