UK's biggest benefit fraud: Gang must repay just £2m of £54m haul

The Serious Fraud Office building in London, which investigates major fraud cases. (Symbolic image) (Photo by Peter Dazeley/Getty Images) Getty Images

A criminal gang behind Britain's largest benefit fraud has been ordered to repay just £2 million of the nearly £54 million they stole. The repayment represents roughly 1% of the total amount embezzled through approximately 6,000 bogus Universal Credit claims.

The five-member gang admitted fraud and money laundering charges in May 2024 and received combined prison sentences of 25 years. Yet four of the five have already been released and now face deportation hearings.

The fraud operation ran on what prosecutors described as an «industrial scale» for four years until its exposure in May 2021. The gang operated from back rooms of three corner shops in Wood Green, north London, submitting fraudulent claims using real people and stolen identities backed by forged documents.

Applications were repeatedly resubmitted until accepted. The stolen funds financed a lavish lifestyle including luxury cars, designer clothing, and expensive watches.

Members and sentences

Galina Nikolova, 38, received eight years. Her partner Stoyan Stoyanov, 27, received four years but brazenly continued submitting fraudulent claims while under investigation, stealing an additional £17,000. Prosecutors said he would «act as a conduit for those higher up in the chain.»

Gyunesh Ali, 33, was jailed for seven years and three months and remains in prison. Tsvetka Todorova, 52, walked free on licence due to time served on remand. Patritsia Paneva, 26, has also been released.

Recovery efforts

Police raids on multiple north London addresses uncovered hundreds of "claim packs" containing forged paperwork and £750,000 in cash hidden in suitcases and carrier bags. Authorities seized a black Audi, two Emporio Armani watches, two Versace watches, Gucci shoes, and Chanel trainers.

The operation came to light after a police officer in Sliven, Bulgaria, tipped off British authorities.

Prosecutors are continuing efforts to recover stolen funds, noting the gang moved most of the money overseas. A Department for Work and Pensions spokesperson said: «We take all fraud seriously and last year we saved an estimated £25bn through our prevention and detection activities. In this case, action is ongoing to recover further money.»

The Telegraph reported the £2 million repayment order.

Note: This article was created with Artificial Intelligence (AI).