Tuesday, February 18, 2014

Coco con couple: Husband and wife duo masterminded a £280,000 Chanel scam which funded a Chelsea apartment and private schooling for their children

A couple on benefits ran a £280,000 VAT scam on luxury fashion brand Chanel in order to fund a luxury flat in London's exclusive Chelsea, private schools for their children and gambling at casinos.
Emmanuel and Behnaz Scotts bought items at one of three Chanel stores and later return the goods to a different shop to obtain a refund or an exchange.
The couple, who claimed £32,000 in benefits, posed as wealthy tourists in order to claim back tax on returned goods  They also misled staff into supplying VAT export claim forms for goods they had not bought.
Behnaz Scotts, who ran a VAT scam with her husband
Emmanuel Scotts, who would pose as a foreign tourist in order to claim back tax on returned goods
Fraudsters: Behnaz Scotts, who ran a VAT scam with her husband Emmanuel. The pair would pose as foreign tourists in order to claim back tax on returned goods

Last week Emmanuel Behnaz was told to repay £27,672 and his wife £25,622 - or they would be handed 15 months in jail - at an Old Bailey confiscation hearing, reports the Evening Standard.
In March 2012 Emmanuel Scotts, a professional fraudster with convictions for similar rackets in the UK, Switzerland and Sweden who also stole £38,000 from a pawnbroker, was sentenced to four years for the fraud and six months consecutive for the theft.

Sarah Giddens, the prosecutor at the time, said the couple got to know staff at the central London stores in order to get them to sign forms allowing the fraud to take place.
She added: 'The UK retail export scheme is a scheme that allows a traveller to the UK who is not a resident of the UK or EU to purchase goods from participating retailers, inclusive to VAT, to claim back that VAT when they leave the EU.
They also misled Chanel staff into supplying VAT export claim forms for goods they had not bought. File picture
They also misled Chanel staff into supplying VAT export claim forms for goods they had not bought. File picture

'This is done using a reclaim form, called the VAT 407.
'This case is all about an abuse of the export system, at Chanel, a luxury boutique shop, selling high level items, often to wealthy visitors to the UK.
'In total they attempted to make a quarter of a million pounds in VAT refunds, but were actually paid £176,000.'
Robert Alder, assistant director for criminal investigation at HMRC, said: 'Emmanuel and Behnaz Scotts were professional fraudsters and thought they were too clever to fail. They passed themselves off as high rollers and spent large sums of criminal cash in expensive boutiques and casinos.
'But their glamorous lifestyle was a sham, funded at the expense of the taxpayer. Our investigations do not stop on sentencing - we pursue the money stolen to reclaim it for the country’s finances.'

dailymail.co.uk

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