Raymond Woolley, 49, a company director from Stoke on Trent, and Robert Garner, 33, a computer consultant of Stone, Staffs, were importing mobile phones into the UK, creating a VAT debt, and then re-selling the handsets out of the UK to the initial vendor at a lower cost.
The fraud involved a network of companies based in Spain, the Irish Republic and Staffordshire. According to Customs and Excise, one of the companies involved, Roofsmart Limited, built up a VAT debt of £24,154,931 in just three months between 8th August and 2nd November 2000. In its entire history the company only ever put in one VAT return – for a payment of £273.49.
Woolley was found guilty of conspiracy to cheat the public revenue, and subsequently pleaded guilty to two charges of money laundering. He was sentenced to nine years' imprisonment. Garner, who pleaded guilty to the same charges, was sentenced to seven years.
The Birmingham Crown Court characterised the fraud as "persistent, carefully planned and skilfully and elaborately executed", and told Woolley that "these sentences must go out as a warning to others planning to follow in your footsteps".