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4 months ago
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This is the moment police raided an unassuming north London corner shop where a group of Bulgarian fraudsters had masterminded the UK's biggest ever benefit scam.
The gang-of-five were jailed today for more than 25 years today after they hijacked 6,000 identities to rake in £54million in bogus Universal Credit claims, using the names of children living in Bulgaria as part of the five year scam.
The Eastern European group set up three 'benefit factories' across London to churn out bogus tenancy agreements, counterfeit payslips and forged letters from landlords, employers, and GPs to trick the Department of Work and Pensions (DWP).
Footage released by the Crown Prosecution Service shows officers entering Antonia's Foods supermarket in Wood Green - a functioning corner shop which allowed the group to hide in plain sight whilst they carried out their criminal activities.
Upon raiding the three factories, police discovered computers, some open on the Universal Credit application page, filing cabinets full of claim packs, and folders containing records on benefit claims.
The force also found several hundred low-tech mobile phones, all being charged, alongside thousands of SIM cards. Most of these devices had the names and claim number of the applicant who had used it.
Two of the criminals - Galina Nikolova, 38, and Stoyan Stoyanov, 27 - pictured together in 2020 while on holiday in Turkey. Ringleader Nikolova was jailed for eight years, while Stoyanov was handed a four year prison term
Footage released by the Crown Prosecution Service shows officers entering Antonia's Foods supermarket in Wood Green - a functioning corner shop which allowed the group to hide in plain sight
Huge stacks of cash found during the investigation
Today, the shameless gang were hauled in front of Judge David Aaronberg at Wood Green Crown Court who said ringleader Galina Nikolova, 38, was responsible for at least £25million lost to UK taxpayers.
During the sentencing, Judge Aaronberg blasted the 'woefully inadequate checking systems' at the DWP, which allowed the gang to operate for such a long time.
He added that the DWP failed to identify the criminal's 'repeated use of the same names, addresses and telephone numbers'.
Addressing the criminals in court, Judge Aaronberg said: 'You systematically plundered the state's support mechanism for the needy in order to fund your lifestyles and those of many others.
'It falls to me to sentence you today for your involvement, along with others not before the court, in the largest fraud of its type ever to be prosecuted in this country.'
Investigators believe the gang used a system involving burner phones lowered down to waiting customers via a bucket pulley mechanism was also used to improve the scam's efficiency.
They also found spreadsheets with the exact details for the thousands of claims when examining the gang’s own smartphones and computers.
The enormous haul of money gained from their 'complex financial web' of claims was laundered through a number of accounts, then withdrawn in cash – with £750,000 in bank notes found stuffed in suitcases at one of their homes.
Upon raiding the store, police discovered computers, some open on the Universal Credit application page, filing cabinets full of claim packs, and folders containing records on benefit claims
The force also found several hundred low-tech mobile phones, all being charged, alongside thousands of SIM cards
Investigators believe the gang used a system involving burner phones lowered down to waiting customers via a bucket pulley mechanism (pictured right on the windowsill) was also used to improve the scam's efficiency
One of the many folders containing records on benefit claims that police discovered whilst carrying out raids at the gang's 'benefit factories'
Gyunesh Ali, 33, even took a video of himself throwing wads of cash at unknown woman.
Ali, Nikolova, and her boyfriend Stoyan Stoyanov, 27, along with Tsvetka Todorova, 52, and Patritsia Paneva, 26, were arrested on 5 May 2021.
Stoyanov had a tattoo of Nikolava on his right arm and posted a photo of it along with a red rose on social media.
Nikolova, who also ran her own Bulgarian interpreting firm, boasted 'the air that I breathe' as they cuddled in another shot while the couple also enjoyed a lavish trip to Istanbul.
DWP investigators searched their homes and found shopping bags crammed with designer goods, Rolex watches, jackets and wads of cash.
One of the hubs was behind a functioning corner shop selling groceries.
The group appeared to be hiding in plain sight - posting photos on social media smiling and posing behind the counter of Antonia's Foods supermarket in Wood Green.
Judge David Aaronberg, KC, said that the fraud was carried out on an 'industrial scale'.
He referred to 'messages sent to Ms Paneva including those making fun of the DWP's gullibility in processing fraudulent claims.
'There were also photoshopped photographs of claimants outside properties in which it was falsely claimed they were renting.
'Photographs had been doctored to make it appear the claimant had physical access to properties which in reality they did not have.
'There were systems in use by which phones could be lowered in a bucket out of the window to be used downstairs by those communicating bogus information to the DWP.'
Judge Aaronberg told Nikolova: 'You bear personal responsibility for at least £25 million lost to the taxpayer.
'The sentence I impose therefore on count two is one of eight years imprisonment.'
Gyunesh Ali, 33, was also part of the gang. He was jailed for seven years and three months
Patritsia Paneva, 26, (left) wept as she was sentenced to three years and two months imprisonment. Tsvetka Todorova, 52, (right) was jailed for three years, but was released on licence because she had served 625 days on remand
Nikolova seen standing behind the counter of Antonia's Foods in Wood Green, pouting at the camera alongside an unknown man
Ali recorded a video with him standing next to a briefcase full of money that had be obtained through the scam
The enormous haul of money gained from their 'complex financial web' of claims was laundered through a number of accounts, then withdrawn in cash
Nikolova, who will also be deported to Bulgaria, kept her head bowed as she was jailed.
Her lover Stoyanov, referred to the judge as a 'trusted subordinate', was sentenced to four years imprisonment.
The judge told Ali: 'You played a leading role in the conspiracy which was sophisticated in its nature and which involved significant planning.
'You offended for some four and a half years, involving yourself with, as I've described, a vast number of false declarations.
'I've seen evidence of you enjoying a lavish lifestyle as demonstrated by the material found on your mobile phone.
'You well knew long before you were originally arrested that you were involved with others in making false claims.'
Ali was jailed for seven years and three months. He will also be automatically deported to Bulgaria once he has served his sentence.
Paneva wept as she was sentenced to three years and two months imprisonment.
The judge said Paneva was 'impressionable and naive' in her dealings, but 'showed bravery' in being the first of the fraudsters to enter a guilty plea.
The judge said that Todorova's offending was 'sophisticated' and 'involved significant planning'.
She was sentenced to three years imprisonment for her involvement in defrauding the DWP of £263,419.19.
Todorova was released on licence because she had served 625 days on remand - the equivalent of the term she received.
Wearing a pink blazer, Todorova was visibly relieved at being allowed to walk free from court.
The gang raked in £54m from Britain's biggest ever benefit fraud
Lovers Nikolova and Stoyanov cuddle up together in an earlier snap taken in Palmers Green, north London
Stoyanov poses on social media with a red rose laid on him and a tattoo of a woman on his arm that looks like his co-conspirator Nikolova
Nikolova poses on her Instagram, where she shares images with her fellow fraudster Stoyan Stoyanov
Police bodycam footage shows the moment Nikolova was arrested and taken into custody
Tom Little KC, prosecuting, earlier said the gang members had forged letters from local primary and secondary schools as part of the swindle.
'Forged letters from schools would be used if it was said that there were children part of the claim because that potentially boosted the value of the claim.
'Children as I've indicated who either did not exist or lived in Bulgaria were involved in some of the claims that allowed the value to be increased.'
He said people who had never even been to the UK benefited from the scam: 'They may have travelled here for a short period of time to support the claim before returning to Bulgaria with the claim remaining ongoing.
'Some were already here, made the claim and then departed.
'Some never even travelled here at all.'
Gang members also used their Photoshop skills to create fake photos of ineligible claimants stood in front of doors to imaginary houses, the court heard.
'Stoyanov refers to having someone who works with Photoshop who does 'magic tricks', said Mr Little.
'Todorova advises taking photographs in front of the house for which the false claim is being made and stated: 'They need to take three pictures in different poses and in Photoshop they will put him in front of the door and they will open it'.'
Mr Little also referred to messages and photos shared between the defendants mocking the 'naivety' of the DWP.
'Images are exchanged on the Deluxe WhatsApp Group that poke fun at the naivety of the DWP in relation to the fraudulent claims,' Mr Little said.
Todorova, who acted as an interpreter in the scam, also moaned about the amount of effort she was having to put in.
Mr Little said: 'Todorova was complaining about how much work she was undertaking and how she needed assistance.
In another post on social media, shameless Nikolova is seen posing in an elaborate dress
The enormous haul of money gained from the claims was laundered through a number of accounts, then withdrawn in cash
They used their ill-gotten gains to fund luxury lifestyles, buying designer clothes, watches and even a high-end Audi sports car
And in a clip shared on social media, crooked Nikolova shares a peck on the lips with Stoyanov after she receives a gift
'She stated that her phone rang over 50 times a day and she had emails, messages and interviews to deal with.
'She stated, 'People have even paid me in advance to fix their documents because they believe in me and I can't stand it anymore.'
'She added that her husband is saying that she 'will die from work because I am greedy for money'.
Ali, Nikolova, Stoyanov, Todorova, and Paneva, all admitted fraud and money laundering offences dating from between October 2016 and May 2021.
While under investigation Ali fled the country to Bulgaria. But he was extradited back to the UK on 25 February 2023.
Alisdair Williamson KC, defending Stoyanov, said he was 'left penniless' after being 'cheated out of his wages' when he first came to the UK.
'He (then) met Miss Nikolova through the Bulgarian community and in short, his head was turned.'
Simon Farrell, KC, defending Nikolova, said she was personally responsible for a loss to the DWP of £1.1 million.
He argued she 'wasn't doing it on her own, nor was she a main figure'.
Referring to Nikalova's translation company Judge Aaronberg replied: 'She's the G of G translations!'
Mr Farrell said: 'She genuinely intended to provide interpreting services for Bulgarians in this country, but it quickly became apparent that by telling lies to the DWP, monies could be obtained that otherwise couldn't have been.
'She deeply regrets how she assisted claimants in making these false claims in judge sums'.
The judge replied: 'She regrets being caught.'
In a letter read out to court by her barrister, Paneva said: 'I deeply regret my actions towards this country simply because it gave me so much.
'My grandma was able to live a couple more years, doctors started to treat my grandma's health conditions and she got better.
'I'm not sorry I got caught, I'm truly sorry I wronged this country.
'Believe me - I will never break the law in any way again, I just want to make it right'.
Ben Reid, Specialist Prosecutor for the CPS, earlier said: 'This case is the largest benefit fraud prosecution ever brought to the courts in England and Wales.
'For a number of years, these defendants conspired to commit industrial-scale fraud against the Universal Credit system, costing the taxpayer more than £50 million.
'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.
'This was a complex and challenging case which required close and effective working between CPS prosecutors, the Department for Work and Pensions and our international partners in both Bulgaria and through the UK desk at Eurojust, to dismantle and successfully prosecute the organised crime group.
'The guilty pleas entered by all five defendants, reflects the strength of the evidence against them.
'The CPS Proceeds of Crime Division and DWP will now pursue confiscation proceedings against the defendants, to remove from them any available criminal benefit from this enterprise.'
Mel Stride MP, Secretary of State for the Department for Work and Pensions, said: 'I am immensely proud of DWP investigators' work, in collaboration with the Crown Prosecution Service, to take down this organised crime group.
'The convictions underline our commitment to protecting taxpayers' money and it is only right and fair that we bring to justice those stealing from the public purse. My message is simple – if you are committing benefit fraud, you are cheating the taxpayer, and we will catch you.'
The roll call of Britain's benefit's cheats:
Benefit fraud in Britain peaked at £8.6billion between 2021 and 2022, almost double what the levels they were at before the pandemic.
It has led to dozens of convictions over the last few years. Here, MailOnline highlights some of the crooks:
Ethel McGill, 72
McGill was labelled 'Britain's worst benefits cheat' when she swindled £750,000 by hiding her father's death and faking dementia.
Ethel McGill, pictured, pretended she had dementia as part of a long-running benefits and disability fraud
It led to the amateur actress to being jailed for five years and eight months in July 2019 before being given an extra months on her sentence in 2020 for failing to pay back £200,500 of her ill-gotten gains.
At Liverpool Crown Court, McGill admitted hiding her late father Robert Dennison's death for 12 years so she could claim his war pension and benefits.
On one occasion she got a friend to lie under a blanket and pretend to be him at her home in Runcorn, Cheshire.
The CPS said at the time that it was one of the 'largest ever cases of benefit fraud by a single person'.
Ali Bana Mohamed, 42
Ali Bana Mohamed, 42, was jailed in 2022 for masterminding a decade-long scam to cheat taxpayers out of at least £1.7million
Mohamed, from Hulme in Manchester, faked the identities of almost 200 children to pocket public money.
He was jailed in 2022 for masterminding a decade-long scam to cheat taxpayers out of at least £1.7million.
He enlisted relatives and friends to assist him in submitting bogus claims under about 70 different names, using stolen identities of adults along with the fake birth certificates of 188 children.
All the fraudulent claims were made on the basis that the adult had care of named children and was entitled to child benefit and tax credits.
Mohamed admitted 29 fraud offences and was sentenced to three and a half years in prison in 2022. Last year he was ordered to repay more than £2million.
Neil Filer, 46
Filer pocketed nearly £30,000 of taxpayers' money after falsely claiming he had an array of serious medical conditions – then splurged the cash on cocaine and a lavish lifestyle.
Neil Filer (pictured) pocketed nearly £30,000 of taxpayers' money after falsely claiming he had an array of serious medical conditions
He told the Department for Work and Pensions he had diabetes, epilepsy, multiple sclerosis and right-sided weakness after a heart attack – adding that his health was so bad he could walk only short distances.
The crook insisted he needed help with washing, bathing, dressing, preparing food, reading and remembering to eat, leading to extensive claims under the Personal Independent Payments scheme.
Meanwhile, on social media he made 'boastful' posts about an action-packed holiday to Orlando, Florida, with pictures showing him unaccompanied on a '90ft drop slide' at a waterpark and on a roller-coaster.
Filer pleaded guilty to a single count of fraud, claimed £29,245 over four years and nine months. He was likened to Little Britain character Andy Pipkin, who pretended to be disabled, after he was jailed for 11 months.
Mercedes Bradley, 33
Former Virgin Atlantic air stewardess Mercedes Bradley defrauded the taxpayer for £10,000 in benefits even though she had £48,000 in a secret bank account
Former Virgin Atlantic air stewardess Bradley claimed Universal Credit benefits even though she had £48,000 in a secret bank account where she received payments from 'ex-boyfriends' - one of whom transferred her more than £30,000.
She admitted was of dishonestly failing to notify the Department for Work and Pensions (DWP) of capital savings or investments which would affect entitlement to Universal Credit between March 26 2020 and August 28 2021.
During this time she splashed cash on a boob job, other cosmetic surgery and a Peloton exercise bike. She was sentenced to 150 hours of unpaid work in November 2022.
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