A man who went on the run after he was charged with involvement in a £5.5 million VAT fraud, was sentenced to four and a half years in prison at Manchester Crown Court this week.
Jonathan Nugent, 53, director of a computer company, was originally charged with the offence in 1998. He was released on bail but fled to the USA in 2000, before his trial began.
Last year Nugent was tracked down by the HMRC Fugitive Unit with the help of the US authorities. He was deported to the Republic of Ireland on immigration offences and then extradited to the UK on a European Arrest Warrant to face trial.
Nugent, a former computer dealer, was a director of Clear Technology Limited, based in Warrington, Cheshire. Investigations by former Customs and Excise officers (now HMRC) suggested that Nugent and others smuggled computer components from Hong Kong and Eire into the UK between 1994 and 1998. This allowed them to evade UK customs duty on importation, and VAT on sales within the UK.
According to HMRC, Nugent played a key role in the scheme, introducing the smuggled goods into his company records by using false invoices. These were then used to support false VAT declarations, reducing the VAT due to HMRC and resulting in the evasion of approximately £5.5 million. Nugent was also found to have laundered the profits from the fraud by either making large cash withdrawals or organising transfers to false business accounts set up by his co-conspirators. The money was eventually transferred into accounts in Hong Kong and Switzerland in the names of the main conspirators, including Nugent.
Nugent pleaded guilty to the charges against him on 3rd May 2013 and has now been sentenced to four years six months in jail.
Tax prosecution is a fast moving area of law, which is growing increasingly important for individuals and businesses. If you find yourself caught up in a tax prosecution you will need proactive advice and representation.
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This blog post is intended as a news item only - no connection between Lewis Nedas and the parties concerned is intended or implied.
