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Lancashire money laundering gang sentenced

A Lancashire gang that cleaned up more than £1.23 million of ‘dirty money’ linked to a major construction industry VAT fraud has been sentenced.

HMRC
Published 19th Sep 2016

A Lancashire gang that cleaned up more than £1.23 million of ‘dirty money’ linked to a major construction industry VAT fraud has been sentenced.

Keith Wilson, Mark Whiteside, Brian Kerfoot, Bernice O’Donnell and Alan Thompson, all of Preston, as well as Michael Troubridge, of Morecambe, set up a network of sham companies to launder money for an organised criminal gang.

An investigation by HM Revenue and Customs (HMRC) found the group registered multiple new companies and most were used as fronts to launder the proceeds of the VAT fraud.

Large amounts would be paid into the accounts of each company before quickly being withdrawn.

Jo Tyler, Assistant Director, Fraud Investigation Service, HMRC, said: “These companies were, in the main, set up to create an illusion of legitimate trading when in fact their sole purpose was to clean up the dirty cash of criminal activity. This was money that should have been funding vital public services.

“The gang were recruited specifically to provide a service to help criminals launder their illicit profits and avoid detection, and knew full well they were breaking the law.”

HMRC’s investigation found the scam was linked to a fraud within the construction industry that has already seen 12 people sentenced in 2014 for setting up 23 fake companies to steal £4 million in a VAT scam, with jail terms totalling more than 16 years handed down.

The six sentenced at Manchester Crown Court on Friday 16 September 2016 were recruited to help launder the criminal profits.

Here were the following sentences handed to the gang:

  1. Keith Wilson, DOB 15/04/1968, Castle Mount, Fulwood, Preston, Lancashire, pleaded guilty to money laundering (value £639,387) at Manchester Crown Court on 28 April 2015. He was sentenced to two years in prison when he appeared at Manchester Crown Court on Friday 16 September 2016.
  1. Mark Whiteside, DOB 09/08/74, Plungington Road, Preston, Lancashire, pleaded guilty to money laundering (value £159,632) at Manchester Crown Court on 28 April on 2015. He was sentenced to 15 months in prison, suspended for two years, and ordered to carry out 160 hours of unpaid work when he appeared at Manchester Crown Court on Friday 16 September 2016.
  1. Bernice O'Donnell, DOB 19/12/71, Plungington Road, Preston, Lancashire, pleaded guilty to money laundering (value £60,000, which was also forms part of the total Mark Whiteside was responsible for) at Manchester Crown Court on 11 July 2016. She was sentenced to 12 months in prison, suspended for 18 months, and ordered to carry out 80 hours of unpaid work when he appeared at Manchester Crown Court on Friday 16 September 2016.
  1. Brian Kerfoot, DOB 15/05/51, Ripon Street, Preston, Lancashire, pleaded guilty to money laundering (value £277,500) at Manchester Crown Court on 17 June 2015. He was sentenced to 12 months in prison when he appeared at Manchester Crown Court on Friday 16 September 2016.
  1. Michael Troubridge, DOB 25/01/1964,St James Court, Heysham, Morecambe, Lancashire, pleaded guilty to money laundering (value £131,000) at Manchester Crown Court on 4 September 2015. He was sentenced to 15 months in prison, suspended for 18 months, and ordered to carry out 120 hours of unpaid work when he appeared at Manchester Crown Court on Friday 16 September 2016.
  1. Alan Thompson, DOB 11/06/56, Great Townley, Preston, Lancashire, pleaded guilty to money laundering (value £25,000) at Manchester Crown Court on 16 June 2015. He was sentenced to six months in prison, suspended for 12 months, when he appeared at Manchester Crown Court on Friday 16 September 2016.