Fraud on the up says KPMG
THE number of North West fraud cases dealt with by the court increased sharply in the first half of the year.
According to KPMG’s Fraud Barometer there were 29 cases with a total value of £27.7m.
This compares to 17 during the same period last year worth £123.4m, but most of this figure – £104m – related to the Lexi property fraud. It was perpetrated more than seven years ago but led to the conviction of Waheed Luqman in abstentia in January 2013.
After stripping the case out, the value of frauds rose by 42% to £19.4m.
This year’s cases included a gang of 11 people who were sentenced for setting up 23 bogus construction firms to steal £4m in a VAT fraud, and Manchester investment banker Timothy Brooks who stole more than half a million pounds from clients of Lloyds division Mayfair Private Banking in Manchester.
Martin Dougall, regional head of Forensic for KPMG, said: “While the value of fraud across the UK is dropping, the picture in the North West tells a slightly different story. The first six months of the year have seen a variety of embezzlement and fraud cases coming to court, suggesting that although the economy may be back on track, the pace isn’t moving quickly enough for some. At a time when cyber crime is making headlines, the allure of making easy money through old-fashioned methods remains strong for those willing to risk all in pursuit of wealth.”
Nationally, fraud cases totalling £317m were recorded in the first half of 2014. The figure represents a 39% drop compared to the same period, last year, but the number of frauds has risen from 148 to 159.
KPMG said the figures suggest the profile of fraudsters is shifting from rogue senior executives to younger individuals funding extravagant lifestyles. Analysis of the cases going through British Crown Courts since the start of 2014 shows that frauds committed by those aged 26-35 were valued at just over £62m – an increase of 285% on the first half of 2013. At the same time, frauds committed by those aged 46 and over fell by 72% to £88m.
