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The ‘spy’ who stole £1.6m tax

Press Release   •   Nov 02, 2017 09:27 GMT

A company director, who stole more than £1.6 million in tax while pretending to be a spy to hide his life of crime, has been jailed.

Raymond Thomas, 71, of Tilney All Saints, Kings Lynn, told family and friends he was a spy often working abroad, but he was in fact travelling to various holiday homes funded entirely from a VAT fraud.

The fantasist told HM Revenue and Customs (HMRC) investigators he worked for US Homeland Security and produced key components for a drone.

He even complained to the Prime Minister ‘as a desperate measure’ to obtain money withheld by HMRC, claiming he worked ‘fiercely and patriotically in the protection of the citizens of this country and others’.

Cheryl Burr, Assistant Director, Fraud Investigation Services, HMRC, said:

“This was an astonishing case. Thomas lived a life of utter fabrication and lied to pretty much everyone he knew.

“In reality, Thomas was a criminal who carried out a sustained attack on the public purse stealing money that should have been funding our public services. But he is now paying the price for his crime.

“HMRC will continue to pursue criminals who think stealing taxpayers’ money is acceptable. If you know of anyone committing VAT fraud you can report them by calling our Fraud Hotline on 0800 788 887.”

Thomas claimed to run a business called Cambridge Computer Graphics (CCG) that he said manufactured and serviced aviation radar systems. He also claimed to have worked for the US Departments of Defense and Homeland Security.

But HMRC’s investigation found the business was a sham and Thomas had created a string of false invoices using hijacked company details to support fraudulent VAT refund claims between 2008 and 2013.

The crime was uncovered after a HMRC officer visited CCG and found discrepancies in his business records following a claim for £98,000 in 2014. During the visit, Thomas said his work for the US meant he had to destroy associated paperwork.

However checks with the US departments and other alleged suppliers, including leading defence and airline companies, revealed no business took place and invoices provided to HMRC were forged.

While the investigation was ongoing, Thomas had his accountant, who was unaware of the fraud, send a letter of complaint to The Prime Minister, The Deputy Prime Minister and Chief Executive of HMRC warning the company would close if VAT claims were not paid.

In another letter of complaint, Thomas said his company had ‘recently developed a critical component of an information gathering drone under contract to the dept of defense’.

The conman told friends and family he was a spy and claimed to be working overseas when he was actually holidaying with his wife, Susan Weston, 69, at properties they owned in Berlin, Kefalonia and Perpignan.

His wife Weston helped launder the stolen money in and out of the business using her personal bank accounts.

The pair were arrested for money laundering at their Salford home after HMRC officers found Thomas had sent £81,700 to his wife’s account in August 2014.

Throughout the investigation Thomas maintained he was working for Homeland Security and said: “Everything will come out in the wash in the end.”

Thomas admitted to VAT fraud, money laundering and producing false documents at Manchester Crown Court on 21 July 2017 and was sentenced to 56 months in prison at the same court on 1 November 2017.

Weston was sentenced to 12 months in prison, suspended for 12 months, for money laundering.

Proceedings are now underway to recover the stolen money.

Notes for Editors

  1. Raymond Edward Thomas, Tilney All Saints, Kings Lynn, DOB 17/06/1946, was sentenced to 56 months in prison at Manchester Crown Court on 1 November 2017.
  2. Susan Patricia Weston, Kersal Way, Salford, DOB 06/09/1948, was sentenced to 12 months in prison, suspended for 12 months, at Manchester Crown Court on 1 November 2017.
  3. Raymond Edward Thomas was charged with committing Value Added Tax (VAT) fraud contrary to section 72 (3a) and (4) of the Value Added Tax Act 1994 through the submission of false VAT returns in order to receive repayments of VAT from HM Revenue & Customs (HMRC) between 1st of October 2008 and 31st of December 2013.Thomas has knowingly produced false invoices to fraudulently reclaim VAT payments from HMRC contrary to the sections 2, 6 and 7 of the Fraud Act 2006. This has resulted in further offences of money laundering being committed contrary to section 327, 328 and 329 of the Proceeds of Crime Act 2002.
  4. Susan Patricia Weston was charged for money laundering contrary to section 327, 328 and 329 of the Proceeds of Crime Act 2002 between 7th and 12th of August 2014.
  5. Anyone with information regarding tax fraud is encouraged to contact the HMRC Fraud Hotline on 0800 788 887.
  6. Follow HMRC Press Office on Twitter @HMRCpressoffice.

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.