On 26 May 2006, a gang of South Yorkshire fraudsters conned mortgage companies out of nearly £5 million by submitting fake applications to them were jailed for a total of 11 years following a successful investigation conducted by South Yorkshire Police Money Laundering Unit.

David Carter, a financial mortgage adviser was responsible for making 15 applications worth a total of £1.3 million between 2001 and 2005, through his own business Network Financial Services in Middle Lane, Rotherham.

David Costin, a South Yorkshire businessman and ex-Rotherham United director aged 44, was found guilty of two charges of conspiracy to defraud mortgage companies by submitting false mortgage applications for four home loans worth thousands of pounds. 

Stephen Bagnall, 45, of Falding Street, Masbrough, was found guilty of one count of conspiracy to defraud, relating to an application he made for a £30,000 mortgage on his home using false details.  He later sold on the same house at a profit of £55,000.

Scott Brunt, 31, of Station Road, Rotherham, admitted two counts of conspiracy to defraud totalling £725,000, while Matthew Wootton, 28, of Eskdale Road, Masbrough, pleaded guilty to one charge concerning a £156,000 mortgage.

The actions by Brunt, who is currently serving a six year jail term for cultivating cannabis imposed last August, and Wootton, were the only ones which led to the mortgage companies suffering a loss - in Brunt's case of between £50,000 and £100,000 and in Wootton's of between £15,000 and £20,000.

Michael Williams, 27, of Wortley Road, Kimberworth also pleaded guilty to one count of fraud relating to a £156,000 mortgage

These offences could not have been committed without the help of accountant John Wright, who provided fake accounts statements which assisted to trick the lenders into releasing the funds.  Wright, 51, of Henley Avenue, Norton, Sheffield pleaded guilty to seven counts of the conspiracy to defraud relating to 25 applications worth £1.8 million, and asked for further offences in 2006 and 2007 to be taken into account.

Speaking after the hearing, DC Nina Kitchener, from the South Yorkshire Police money laundering unit, said: "This has been a lengthy and complex three year financial investigation.

"The sentencing is appropriate to the criminality involved and these individuals are now subject to confiscation proceedings, where their benefits from crime will be valued by the court and will be required to be repaid."

On 20^th August 2009, The North East Regional Asset recovery team successfully concluded the confiscation hearings against Carter and Bagnall at Sheffield Crown Court.

David Brooke, prosecuting Counsel, said in respect of Carter that an agreed sum of £7,524.27 had been reached between South Yorkshire Police, the North East Regional Asset Recovery Team and the defence, relating to the six guilty verdicts, but the jury had been unable to reach a decision on one further count, leading to a not guilty verdict being returned on a direction by the judge.

DC Craig Law, from the North East Regional Asset Recovery Team calculated that the benefit Carter had enjoyed as a result of his crimes included a further £2,640.88 relating to the not guilty count and said that this should also be confiscated, on the "assumption" it had also been a fraudulent application.

DC Law said “in the trial the jury had to be "sure beyond reasonable doubt" to the criminal standard of proof,  but in the proceeds of crime hearing the judge only had to satisfy the civil standard which is "on the balance of probabilities".

John Carmichael, defending, said that would be "going beyond the verdicts of the court" and "They are asking you (HHJ Swanson) to ignore the recorded verdict of the court and make an assumption which is inconsistent with that recorded verdict."

But Judge John Swanson ordered the total amount of £10,165.15 be repaid by Carter within the next three months. If he defaults on the payments he faces six months in prison and will still have the debt to repay when he comes out.

Judge Swanson said: "There is ample evidence in this case that David Carter knew very well what was being undertaken was a fraud on a bank or building society" and  "All the jury's acquittal means is that they could not be sure of their guilt. He added "I do not have to decide if I am sure but I have to decide on the balance of probabilities whether that sum is the result of general criminal conduct, and I have no difficulty in doing that at all."

Stephen Bagnall was also made subject of a confiscation order in the sum of £57,500.50 to be repaid within six months. If he fails, he’ll have to serve two years in prison – and will still be faced with paying the money.