Loan Scam Uncovered

Updated:Sep 2010

Loan Scam Uncovered

In August 2004, a burglary was carried out in Derbyshire where a quantity of passports and official documents were stolen. These documents were later used by two individuals to facilitate a number of fraudulent applications for student loans.

A man aged 33 and a woman aged 29 of Newham, East London would register for a university or college course using false identities obtained from the stolen documents. They would then be awarded student loans which would never be paid back.

The London Borough of Greenwich's Corporate Anti Fraud Team identified the fraud and referred the case onto the Metropolitan Police's Public Sector Team. Officers uncovered a larger network of individuals involved in the fraud.

The loans obtained by the pair afforded them a lavish lifestyle, with the man purchasing a £40,000 BMW Sport and te woman purchasing various luxury goods. On the 02/03/2007 both were convicted of deception using false documents and received custodial sentences of eighteen and four months respectively.

Aina together with her solicitor used the proceeds of her fraud crimes as a security to obtain bail from the City of Westminster Magistrate's Court. The solicitor also stole from his solicitor's company's client account. Police identified this and pursued it further resulting in an additional prosecution.

On the 07/04/2008, the solicitor's was convicted of money laundering and received an eight month custodial sentence. Aina was also further convicted of money laundering and received a 10 month custodial sentence, running concurrently with her previous sentence.

The London RART then stepped in and carried out a confiscation investigation on the three. This investigation resulted in confiscation orders being granted on all three on the 01/12/2008 at Southwark Crown Court. The solicitor's criminal benefit was assessed to be £12,862.57, however a nominal amount of £1.00 confiscation order could only be granted, as he is now bankrupt. The man received an order for £43,674.86 with a further 16 months being added to his sentence if he fails to satisfy the order. The woman also received a confiscation order for £24,009.53, which she has until the end of January 2009 to comply with. If she fails to do so, a further 12 months will be added to her sentence.

This great result highlights the fact that identity fraud will be investigated and the financial gains it affords the individuals involved will be confiscated.