Three arrests in chainsaw VAT fraud probe

A MAN was arrested in a dawn raid in Warrington this morning on suspicion of stealing nearly £300,000 in a VAT repayment fraud linked to the chainsaw industry.

Two other men were arrested at addresses in Stoke as part of the same operation led by criminal investigators from HM Revenue & Customs (HMRC).

They are suspected of taking part in a “missing trader” fraud which involves the creation of a chain of companies that reclaim fictional VAT payments on goods that often do not exist.

Adrian Farley, assistant director of criminal investigation for HMRC, said: “Today’s arrests are a result of many months of investigation to unravel what is believed to be a major fraud.

“One of our key priorities is to identify the abuse of our tax systems by organised criminal gangs stealing vast amounts of public money for their own gain. Working closely with other law enforcement agencies we will unravel cases of complex fraud and bring those responsible before the courts.”

Six residential and business properties were searched – four in Staffordshire, and two in Cheshire. Paperwork including bank accounts and computers were seized along with a firearm and ammunition.
 
All defendants were arrested on suspicion of conspiracy to cheat HMRC and money laundering offences under the Proceeds of Crime Act 2002. They are being questioned by HMRC criminal investigators at police stations.