EASTERN European fraudsters who milked “Benefit Britain” of nearly £500,000 were jailed for a total of more than 13 years yesterday.
The gang discovered how easy it was to defraud the UK Exchequer because it was unlikely fake applications would ever be checked properly, a court heard.
They set up a sham company in the North-East enabling “employees”
to claim benefits designed to help low-income families.
In reality, people flew into England for only a few days so applications for working tax credits, child tax credits and child benefits could be processed, before returning home where they withdrew the money from cash machines.
Petr Bogar, 36, and Jarmila Konopova, 51, from Walcher Grove, Gateshead, Miroslav Bogar, 54, Martin Bogar, 35, and Paulina Bogarova, 34, all of Delaval Road, Scotswood, Newcastle, and Martin Balog, 26, of Mead Walk, Walker, Newcastle, all admitted conspiracy to commit fraud by false representation between January 2008 and last October.
Tony Davis, mitigating for Balog at Newcastle Crown Court, said: “It is not a sophisticated fraud in any way, shape or form.
“The reality is that this country is known as ‘Benefit Britain’.
“There does not appear to be any checks or balances whatsoever following the granting of an award of child benefit and the like.”
In all, the six masterminded 55 benefit applications during 21 months, costing the British taxpayer £451,785.
The gang, two from the Czech Republic and four from Slovakia, set up a company called Ragob Building Services, on Tyneside.
Then benefits applications on behalf of its “workers” from the Czech Republic and Slovakia were made on the grounds they were working fewer than 16 hours a week, meaning they were entitled to claim working tax credit and child tax credits if they had children.
Gang leader Petr Bogar was jailed for four years; Martin Bogar and Martin Balog were each given three-year jail terms; Jarmila Konopova was sentenced to 21 months imprisonment; and Paulina Bogarova received 18 months’ imprisonment.
Miroslav Bogar will be sentenced today.
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