Fraudster faces extra jail term if he fails to repay £20,000
A fraudster who pretended to be a sheik–backed multimillionaire trading in horse medicines has been ordered to pay back £20,000 within three months or serve a further nine months in jail.
Anthony Knowles, 58, from Widnes in Cheshire, was jailed for four years in February after HM Revenue and Customs (HMRC) investigators found he was attempting to steal £2m in false VAT repayment claims.
Zoe Ellerbeck, assistant director, Fraud Investigation Service, HMRC, said:
“Knowles provided dozens of fake documents in his attempt to convince HMRC, and others, that he was genuinely the head of a multimillion-pound empire. All this was based on Walter Mitty-style grandiose lies, fraud, and theft from the public purse.
“His real living circumstances laid bare his lies. We are now recovering the stolen money for British taxpayers.”
Knowles pretended to trade in equine medicine for racehorses, move in rich circles and claimed to have a £25 million bank balance. In reality, he lived in a two-bedroom council house and was unemployed.
As part of his scam, he attempted to buy a Cheshire mansion and farm, and received quotes for building a huge oak-framed extension to include stables, groom quarters and garages. HMRC discovered he had sent one estate agent an email claiming he had £12m in funds available to purchase new property.
HMRC investigators told the court of luxury spending by Knowles on a £4,000 weekend stay at Claridges and the purchase of luxury goods from Hermes.
He had also falsely claimed to HMRC officers that his business was being financially supported by a sheik – who was never traced.
Despite Knowles claiming he had no assets, HMRC identified almost £20,000 in tainted gifts he gave family members and he was ordered to repay these within three months or serve a further nine months in jail.
