Businessmen Jailed for VAT Fraud Involving Gold and Diamonds
Four businessmen who purchased gold bullion and diamonds using proceeds from a multi-million pound VAT fraud scheme have been sentenced to prison.
Leslie Thompson, Graeme Cullen, and Graham Newall were convicted earlier this year for their involvement in a scheme that fraudulently evaded over £8.8 million in VAT between September 2015 and June 2017.
Another individual, Martin Lang, admitted to a more limited role in the crime, which involved £4.8 million of tax money between February and December 2016.
A judge at the High Court in Edinburgh described the group’s actions as "sustained dishonesty" over an extended period.
Lady Hood said the money should have been used to fund, for example, front line services but was instead distributed among the offenders and others.
The offences were further aggravated by connections to serious and organised crime.
The men were employed by West Lothian-based Linear Services, a company responsible for payroll services for 27 employment agencies.
Over a two-year span, they charged their clients substantial VAT amounts but failed to remit these funds to Her Majesty's Revenue and Customs (HMRC).
Thompson, aged 63 from Bathgate, received a seven-year prison sentence; Cullen, 54, from Giffnock, East Renfrewshire, was sentenced to six years; Newall, 49, of Edinburgh, was given five and a half years; and Lang, 68, from Cambuslang, South Lanarkshire, was sentenced to four years imprisonment.
The scheme involved charging VAT on invoices to various companies for "payroll services," but instead of forwarding the VAT payments to HMRC, the men diverted the funds and passed some to associates.
The illicit proceeds were also used to purchase gold, diamonds, and luxury vehicles.
Advocate depute William Frain Bell KC told the men's trial: "The tax collectors in this case were a group of individuals who never had any intention of parting with the VAT."
He said they would get the money "shipped abroad" to buy as much "gold bullion and diamonds as possible".
The prosecutor said: "There were the trips to Malaga, the Grand National, fast cars including Audi RS5s, Range Rovers and Mercedes."
Defendants’ Responses and Sentencing Details
Thompson, described as the "kingpin," along with Cullen and Newall, denied the charges during their trial at the High Court in Glasgow.
Michael Anderson KC, representing Thompson, stated that his client continues to maintain his innocence.
He said: "He has lost everything, or is about to lose everything. He is about to lose his family home."
Thompson is already serving a six-year sentence following a conviction in London for his role in another VAT fraud scheme.
His wife, Beverley, received a two-year suspended sentence for her involvement in the elaborate scam.
Mark Moir KC, representing Cullen, noted that Cullen had previously worked for several accountancy firms and was assessed as posing a minimal risk of reoffending.
John Scullion KC, counsel for Lang, stated that Lang had accepted responsibility, cooperated with authorities, and testified at the trial. He also noted that Lang was in poor health.
Gail Gianni, defence counsel for Newall, explained that Newall had been influenced by individuals of "bad character," which contributed to his difficulties.
She said he was "genuinely remorseful" and acknowledged that he should have contacted the police at an earlier stage.
