The owner of a Cambridgeshire recycling company has been sent to prison for four years after he fraudulently claimed more than £1.1 million in VAT repayments.
Brian Brader from Chatteris set up NKB Recycling in September 2010 to export UK waste to China and India. However, an investigation by HMRC found that Mr Brader had been supplying fake invoices and fraudulent business records. His firm, in fact, was found to have never exported any waste from the UK.
Mr Brader also paid himself a salary of £82,000, while not paying a penny in income tax or national insurance, and withdrew £94,200 from company funds to rent himself a property.
Mr Brader pleaded guilty to the charges at Ipswich Crown Court back in January. In March, he was sentenced to four years in prison and disqualified from being a company director for eight years.
Paul Barton, assistant director at HMRC, said: “[Mr Brader] faked invoices to claim over £1 million of taxpayers’ money which should have gone into public services.
“He also brazenly paid himself a huge salary without paying a penny in tax.
“This is simply not acceptable when other; honest businesses pay what they owe.”
Although businesses should be alert to the possibility of fraudulent activity, it’s not always possible to spot every con out there before it’s too late. That’s where forensic accounting can help you to track down where your company’s money has gone and can help you to recover any losses.
For expert help with a fraud investigation contact Frenkels Forensics for an independent appraisal.
Alternatively, if you’re looking for advice in any aspect of forensic accountancy, then do get in touch via Twitter, Google+, LinkedIn or by visiting our website www.frenkels.com
By Vitek Frenkel – find me via Google+.