Construction Fraud has struck at the heart of the UK’s construction industry, with seven company insiders sentenced for an elaborate £22 million scheme that defrauded taxpayers and undermined public financial systems.
The Shocking Details of the Construction Fraud
On Tuesday, 4 February 2025, a landmark prosecution revealed the intricate mechanisms of a sophisticated financial crime that involved systematic tax evasion and money laundering. HMRC and the Crown Prosecution Service meticulously unraveled a complex network of fraudulent activities.
Key Perpetrators of the Construction Fraud
The convicted individuals include:
- Daniel Newton (38)
- Philip Bailey (36)
- Sean Dean (41)
- Lee Hudson (56)
- Sarah Gillard (41)
- Bradley Mortimer (39)
- Kevin Ratcliffe (43)
How the Construction Fraud Operation Worked
The criminals established a core construction company that strategically invoiced customer companies for labor services, deliberately including VAT elements. Instead of remitting these funds to His Majesty’s Treasury, they diverted the money into personal bank accounts.
Sentencing and Legal Consequences
The sentences ranged from suspended terms to significant imprisonment:
- Daniel Newton: 9 years, 4 months
- Philip Bailey: 6 years, 3 months
- Sean Dean: 7 years
- Lee Hudson: 5 years
- Sarah Gillard: 2 years (suspended)
- Bradley Mortimer: 3 years, 6 months
- Kevin Ratcliffe: 27 months
Impact on Public Services
Julius Capon from the Crown Prosecution Service emphasized the severe implications: “These criminals stole £22 million from the taxpayer. This is money needed to support our hard-pressed public services.”
HMRC’s Response
Ian Hackett, Operational Lead in HMRC’s Fraud Investigation Service, stated, “We have worked closely with Kent Police to dismantle this sophisticated and complex fraud. Our investigators have protected millions of pounds of taxpayers’ money.”
Legal Proceedings and Future Actions
The prosecution has initiated proceeds of crime proceedings to recover the illegally obtained funds. The Crown Prosecution Service remains committed to investigating and prosecuting public sector fraud.
