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Tax fugitive Geoffrey Johnson caught and jailed

Press Release   •  Jul 13, 2017 17:42 BST

Tax fugitive Geoffrey Johnson caught and jailed

One of Britain’s most wanted tax fugitives, the man at the centre of a vast, multi-million pound tax fraud, who fled the UK in July 2014 to avoid prison, has been deported from Dubai after being caught travelling with a fake British passport.

Geoffrey Winston Johnson, 74, originally from Forfar, Angus, played a leading role in an 18-strong crime gang involved in a complex VAT fraud. He was sentenced to 24 years in prison in his absence and both he and his son were ordered to repay £109m worth of criminal proceeds.

Johnson was apprehended on Friday 7 July in Dubai after using a fake passport to travel from Kenya, where he had been lying low. As soon as his true identity was uncovered, HM Revenue and Customs (HMRC) moved quickly and assisted the Dubai authorities to secure his return to the UK to face justice.

Johnson was returned to the UK in the early hours of this morning (Thursday 13 July) and appeared at Kingston Crown Court this afternoon. He was sentenced today for an additional six months for not attending his original trial and faces a total of 24 years and six months in prison.

Simon York, Director, Fraud Investigation Service, HMRC, said:

“We’ve been pursuing Johnson from the day he decided to flee the UK. Despite him taking audacious measures to evade capture, we tracked him across the globe and he is now back to begin a long spell in prison. This sophisticated fraud was outright theft of money intended for important public services and it is right that he now pays the price for that crime.

“Getting him back to face justice is testament to the hard work and professionalism of HMRC investigators, who uncovered and investigated his crime and successfully tracked him down with the help of the Dubai authorities.

“Johnson is the sixth tax fugitive we have recovered from overseas this year alone. HMRC will always relentlessly pursue tax criminals and we are determined to ensure nobody is beyond our reach.”

The gang, based in Cheshire, East Sussex, Greater Manchester, Lancashire, North Wales, Staffordshire, Scotland and Spain, set up a number of businesses claiming to be legitimately importing and selling mobile phones. They hid their fraud behind a complex web of transactions but HMRC investigators discovered it was all an elaborate VAT repayment fraud.

Despite the gang going to great lengths to hide their criminal profits, HMRC investigators uncovered a series of complex transactions which they used to launder stolen money through bank accounts in the UK and further afield, including through Andorra, Dubai, Hong Kong, Switzerland, Portugal and the US. Geoffrey Johnson was instrumental in laundering the criminal proceeds of the fraud.

Rather than stand trial, Johnson along with his son Gareth, became fugitives and fled the UK. They were sentenced to ten and 12 years in jail in their absence in 2014 and 2013 respectively.

In March 2016, they received a confiscation order for over £109 million. As they didn’t pay this, they received an additional prison sentence of 14 years which was added to their original sentences.

Anyone with information on the whereabouts of Gareth Johnson should contact our hotline on 0800 788 887.

Johnson’s return is the latest in a spate of fugitives being caught and returned to face justice in the UK, including Lieb Berger, Wayne Hardy and Mbarak Gowie.

Notes for editors

1.Geoffrey Winston Johnson (DOB 19.06.43) previously of Dar es Salaam, Tanzania. Geoffrey, father of Gareth Johnson, was sentenced to ten years in prison in his absence in 2014. He did not answer bail to attend trial. Geoffrey Johnson was instrumental in laundering the criminal proceeds of the fraud and greatly benefitted from them. On 22 March 2016, he received a confiscation order for £109,203,791 to be paid immediately or a default prison sentence of 14 years was to be added to his sentence. Johnson was returned to the UK on Thursday 13 July 2017.

2.Gareth Johnson (DOB 29.02.68) formerly of Turin, Forfar, Scotland, son of Geoffrey Johnson, was sentenced to twelve years in prison in his absence in 2013. He did not answer bail to attend trial and is still a fugitive. Gareth Johnson was the principal controller behind Tectonics Holdings – which played an integral role in the fraud as the money laundering arm of the operation through personal UK and offshore accounts. He also had control of Coast Logistics another company used in the fraud. On 22 March 2016, he was issued with a confiscation order, alongside his father, for £109,203,791, to be paid immediately or a default prison sentence of 14 years to be added to his sentence.

3.Details of the Johnson’s £109 million confiscation order are available here: http://www.mynewsdesk.com/uk/hm-revenue-customs-hmrc/pressreleases/vat-fraud-gang-ordered-to-repay-more-than-ps114m-criminal-profits-1353396

4.Details of twelve previous confiscations in relation to the gang are available in here: http://www.mynewsdesk.com/uk/hm-revenue-customs-hmrc/pressreleases/vat-fraudsters-ordered-to-repay-criminal-profits-1194690

5.There is no appeal against default jail sentences issued in confiscation orders and the order for repayment remains in place after the default sentence is served by the fraudster. If criminal benefits on a confiscation order are higher than the repayment amount HMRC can recover the outstanding amount in the future.

6.Details of some recent fugitive cases where individuals were returned to the United Kingdom are linked below:

7.Follow HMRC’s Press Office on Twitter @HMRCpressoffice

8.Photographs are available at HMRC’s Flickr channel: www.flickr.com/hmrcgovuk

9.Anyone with information about people or businesses involved in tax fraud can contact HMRC on our Fraud Hotline on 0800 788 887 or at www.hmrc.gov.uk/reportingfraud/online.htm

Issued by HM Revenue & Customs Press Office

HM Revenue & Customs (HMRC) is the UK’s tax authority.

HMRC is responsible for making sure that the money is available to fund the UK’s public services and for helping families and individuals with targeted financial support.