Professor Ian Swingland from Sandwich stripped of OBE after assisting fraudsters in HIV cure scam
10:18, 26 February 2019
updated: 13:16, 26 February 2019
A world renowned scientist from Sandwich has been stripped of his OBE after he aided two fraudsters in a HIV cure tax scam.
Professor Ian Swingland, 72, of Alexander Close, assisted a company director Antony Blakey, 68, and finance director, John Banyard, 70, in their attempts to steal more than £60 million through a fraudulent tax avoidance scheme.
He helped create the fake documents which enticed wealthy people to invest in the scheme with the promise of avoiding tax by supporting tree planting in the Amazon and research into a HIV cure.
An investigation by HM Revenue and Customs (HMRC) found that the false documents were used to fraudulently claim expenses.
They submitted fake scientific reports to HMRC and photos to support their claims but there was no evidence any of this had actually taken place.
The University of Kent professor who was awarded an OBE in 2007's New Year Honours for services to conservation used his name to add credibility to the scheme but he has now been stripped of the honour.
He was found guilty on March 3 2017 of one count of conspiring to commit fraud by false representation, receiving a two year sentence, suspended for 18 months at Southwark Crown Court on March 10, 2017.
The details of the convictions and sentences can only now be revealed after reporting restrictions were lifted yesterday (Monday).
Blakey from from West Sussex was jailed for seven and a half years in March, revised to nine years at the Court of Appeal on May 25, 2017.
John Banyard, also from West Sussex, was jailed for four and a half years, revised to five and a half years at the Court of Appeal, on the same dates.
Simon York, director of Fraud Investigation Service, HMRC, said: “This was a calculated and cynical crime carried out by men who had no shame in using a worthy cause like HIV research to mask their criminality.
"In doing so, they attempted to steal millions of pounds from the taxpaying public - money that ultimately pays for vital public services like the NHS.
“Promoting tax avoidance schemes is bad enough and we’re making it a priority to go after those who market them, but for these men that was just a first step in establishing an elaborate criminal operation that included offshore accounts, fake transactions and blatant lies.
“To those who would follow in their footsteps, I would say this case sends a clear message that no matter how well you think you’ve covered your tracks, no one is beyond our reach and you will face justice.”
The men sold the scheme as a marketed investment opportunity when in fact it was fraud masquerading as avoidance.
Investors were able to claim tax rebates on the losses that the businesses apparently generated, or lower their tax bills, by offsetting losses against £160 million of income, attempting to avoid £60 million in tax.
The majority of repayments claimed were withheld by HMRC.
During the investigation, HMRC worked with a number of foreign jurisdictions including Germany, Mauritius, Brazil, the Netherlands, France, Cyprus and the United States and found the fraudsters used offshore companies in Mauritius and the Seychelles to cover their tracks.
His Honour Judge Pegden QC, said: “The offences required significant planning and the fraudulent activity was over a sustained period. You were all involved in different ways in dishonest tax schemes.
“Antony Blakey, you lay at the very heart of these schemes, playing a part in devising them and ensuring their sale, and then lying to Her Majesty’s Revenue and Customs over a prolonged period.”
HMRC is pursuing confiscation against the fraudsters to recover criminal proceeds and also pursuing those who invested in this now failed avoidance scheme to recover taxes due.
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