Twenty-seven sentenced in Northern Ireland’s biggest ever tax fraud case

The ringleaders of a gang who triggered Northern Ireland’s biggest ever tax probe have been jailed thanks to secretly recorded conversations in a bugged accountant’s office.

The decade-long investigation into the £5 million tax fraud ended yesterday (13 June 2023) with prison sentences issued to gang leaders 58-year-old Francis Devlin and 56-year-old Paul McStravick for a combined total of eight years.

HM Revenue and Customs (HMRC) mounted its biggest ever operation in Northern Ireland to bring the 27-strong gang to justice.

The case was based on more than 260 hours of secretly recorded footage of gang members plotting the fraud from the Belfast accountancy firm Allen Tully & Co where Devlin was a partner and the wider gang used as a base.

In one clip they were caught describing the office as an “Aladdin’s cave” for fraud investigators, while suggesting they would “go down in history” if they were ever caught.

Devlin and McStravick were jailed for four years each. Another 25 accomplices, most of whom knowingly allowed their personal details to be used as part of the fraud, were handed suspended prison sentences.

Richard Las, Director, Fraud Investigation Service, HMRC, said:

“This was a sophisticated and complex fraud that took the largest ever tax probe in Northern Ireland, including extensive covert surveillance, for HMRC fraud investigators to bring it down.

“Their tenacity and expertise has stopped the loss of millions of pounds in taxpayers’ money, which is now paying for our vital public services, rather than lining the pockets of criminals.

“The fact is, no tax criminal is beyond our reach and that includes those corrupt professionals who aid and abet them, as these sentences clearly show.”

“We encourage anyone with information about any type of tax fraud to report it to HMRC online.”

The gang created a false audit trail that enabled clients to operate in the construction industry without paying tax or VAT.

They created 16 bogus companies and used 56 associated bank accounts to commit the fraud.

Working with partners in the PSNI, the Public Prosecution Service (PPS), the National Crime Agency and financial institutions, HMRC built the case before swooping on 34 premises.

More than 400 HMRC officers searched 34 business and residential premises in March 2012, including three in England, in its biggest ever operation in Northern Ireland.

HMRC kept the gang under the secret surveillance for six weeks between February and March 2012.

It’s the first time the technique has been used by HMRC in Northern Ireland and it is reserved for the most serious of tax fraud cases. Use of this technique requires approval from the surveillance commissioner.

Graham Cardwell, Senior Public Prosecutor at the PPS, said:

“In this case, we worked closely with HMRC from an early stage in their investigation, which involved an extensive undercover surveillance operation.

“HMRC investigators submitted a large and complex file of evidence, including digital material and witness statements, to the PPS for consideration. The prosecution team including counsel pulled together the various strands of evidence to form a strong prosecution case, which has resulted in these convictions.”

Notes for editors

1. Robert Clarke (DOB 26/12/1951) of Dundrod Road, Crumlin, pleaded guilty to one count of converting criminal property on 8 November 2019 and was sentenced to two years imprisonment, suspended for 18 months, on 12 November 2019 at Belfast Crown Court.
2. Kenneth Sheehan (DOB 06/01/1979) of Cromwell Road, Belfast, pleaded guilty to two counts of conspiracy to cheat the public revenue on 18 October 2021 and was sentenced to 26 months imprisonment, suspended for 18 months, on 26 November 2021 at Belfast Crown Court.
3. Matthew Brennan (DOB 24/09/1985) of Mathieson Terrace, Glasgow, pleaded guilty to two counts of conspiracy to cheat the public revenue on 9 December 2021 and was sentenced to 26 months imprisonment, suspended for 18 months, on 16 December 2021 at Belfast Crown Court.
4. Desmond Crean (DOB 23/06/1966) of Drummond Park, Belfast, pleaded guilty to two counts of Conspiracy to Cheat the Public Revenue on 15 December 2021 and was sentenced to two years and eight months in prison, suspended for two years, on the same date at Belfast Crown Court.
5. Daniel Lyons (DOB 07/08/1980) of Whiterock Road, Belfast, pleaded guilty to two counts of conspiring to convert criminal property on 11 January 2022 and was sentenced to 18 months imprisonment, suspended for 18 months, on the same date at Belfast Crown Court.
6. Sean Armstrong (DOB 31/12/1976) of Conor Rise, Belfast, pleaded guilty to two counts of conspiracy to cheat the public revenue on 17 February 2022 and was sentenced to 26 months imprisonment, suspended for 18 months, on 10 March 2022 at Belfast Crown Court.
7. John Donnan (DOB 09/12/1979) of Portnamona Court, Belfast, pleaded guilty to two counts of conspiring to convert criminal property on 28 February 2022 and was sentenced to 18 months imprisonment, suspended for 18 months, on 10 March 2022 at Belfast Crown Court.
8. Kieran McGuinness (DOB 13/10/1976) of Berkeley Hall Square, Lisburn, pleaded guilty to two counts of conspiracy to cheat the public revenue on 10 March 2022 and was sentenced to four years imprisonment, suspended for three years, on the same date at Belfast Crown Court.
9. Francis Rooney (DOB 10/09/1966) of Coolnasilla Park, Belfast, pleaded guilty to two counts of conspiring to convert criminal property on 1 April 2022 and was sentenced to 18 months imprisonment, suspended for 18 months, on the same date at Belfast Crown Court.
10. Anthony Cassidy (DOB 28/12/1957) of Gausson Villas, Ballyronan, pleaded guilty to two counts of conspiracy to cheat the public revenue and one count of converting criminal property on 12 April 2022 and was sentenced to two years imprisonment, suspended for 18 months, on the same date at Belfast Crown Court.
11. Elizabeth Mulholland (DOB 19/08/1954) of Cavehill Road, Belfast, pleaded guilty to one count of converting criminal property on 4 April 2022 and was sentenced to 18 months imprisonment, suspended for 18 months, on the same date at Belfast Crown Court.
12. Colin Crean (DOB 26/09/1991) of Ligoneil Road, Belfast, pleaded guilty to two counts of conspiracy to cheat the public revenue on 10 May 2022 and was sentenced to one year in prison, suspended for 12 months, on the same date at Belfast Crown Court.
13. Vincent O’Neill (DOB 09/04/1969) of Weavers Meadow, Crumlin, pleaded guilty to two counts of conspiracy to cheat the public revenue on 25 May 2022 and was sentenced to 26 months imprisonment, suspended for 18 months, on the same date at Belfast Crown Court.
14. William Walsh (DOB 12/09/1954) of Hillhead Avenue, Belfast, pleaded guilty to two counts of conspiracy to cheat the public revenue on 5 July 2022 and was sentenced to two years and eight months in prison, suspended for two years, on 8 July 2022 at Belfast Crown Court.
15. Paul McStravick (DOB 27/01/1967) of Myrtlefield Park, Belfast, pleaded guilty to two counts of conspiracy to cheat the public revenue and two counts of conspiracy to convert criminal property on 28 July 2022 and was sentenced to four years in jail on 13 June 2023 at Belfast Crown Court.
16. Angela McStravick (DOB 02/07/1963) of Myrtlefield Park, Belfast, pleaded guilty to two counts of conspiracy to cheat the public revenue and two counts of conspiracy to convert criminal property on 15 August 2022 and was sentenced to three years imprisonment, suspended for three years, on 28 October 2022 at Belfast Crown Court.
17. Joseph McStravick (DOB 08/05/1965) of Commedagh Drive, Belfast, pleaded guilty to two counts of conspiring to convert criminal property on 15 August 2022 and was sentenced to two years and six months imprisonment, suspended for two years, on 28 October 2022 at Belfast Crown Court.
18. Ciaran McStravick (DOB 20/02/1964), address unknown, pleaded guilty to two counts of conspiring to convert criminal property on 15 August 2022 and was sentenced to two years and six months imprisonment, suspended for two years, on 28 October 2022 at Belfast Crown Court.
19. Brendan Muldoon (DOB 11/02/1966) of Cluain Mor Drive, Belfast, pleaded guilty to two counts of conspiracy to cheat the public revenue on 28 October 2022 and was sentenced to two years and six months imprisonment, suspended for two years, at Belfast Crown Court on 28 October 2022.
20. Francis Devlin (DOB 10/12/1964) of Bristow Park, Belfast, pleaded guilty to two counts of conspiring to cheat the public revenue and two counts of conspiracy to convert criminal property on 2 September 2022 and was sentenced to four years in jail on 13 June 2023 at Belfast Crown Court.
21. Simon Brennan (DOB 21/09/1967) of Edenvale Meadows, Belfast, pleaded guilty to two counts of conspiring to cheat the public revenue and two counts of conspiracy to convert criminal property on 2 September 2022 and was sentenced to four years imprisonment, suspended for three years, on 28 October 2022 at Belfast Crown Court.
22. Anthony Donnelly (DOB 19/08/11976) of Cranmore Gardens, Belfast, pleaded guilty to one count of converting criminal property on 2 September 2022 and was sentenced to two years and six months imprisonment, suspended for two years, on 28 October 2022 at Belfast Crown Court.
23. Stephen Darragh (DOB 03/02/1966) of Georges Island Road, Aghalee, pleaded guilty to two counts of conspiracy to cheat the public revenue on 6 September 2022 and was sentenced to two years and six months imprisonment, suspended for two years, on 28 October 2022 at Belfast Crown Court.
24. Gareth Taylor (DOB 25/10/1986) of Whitewell Drive, Newtownabbey, pleaded guilty to one count of conspiracy to cheat the public revenue on 9 September 2022 and was sentenced to two years and six months imprisonment, suspended for two years, on 28 October 2022 at Belfast Crown Court.
25. David Scanlon (31/10/1986) of Upper Springfield Road, Belfast, pleaded guilty to one count of conspiracy to convert criminal property on 9 September 2022 and was sentenced to two years imprisonment, suspended for two years, at Belfast Crown Court on 28 October 2022.
26. Anthony Devlin (DOB 06/09/1960) of Gransha Crescent, Belfast, pleaded guilty to one count of conspiracy to cheat the public revenue on 9 September 2022 and was sentenced to two years and two months imprisonment, suspended for 18 months, on 28 October 2022 at Belfast Crown Court.
27. Sanjeev Dhir (DOB 23/06/1974) of Lakeview Avenue, Rainham, Essex, pleaded guilty to two counts of Conspiracy to Cheat the Public Revenue and two counts of conspiracy to convert criminal property on 5 October 2022 and was sentenced to two years and six months imprisonment, suspended for two years, on 28 October 2022 at Belfast Crown Court.
28. The total value of the fraud was £5m over 18 months.
29. Surveillance operations were conducted at the offices of Allen Tully & Co on the Lisburn Road in Belfast.
30. Anyone who wishes to report suspected fraud to HMRC should search ‘Report Fraud HMRC’ on GOV.UK and complete our online form.
31. Follow HMRC’s Press Office on Twitter @HMRCpressoffice