An accountant known as ‘the Godfather’ who masterm

An accountant known as ‘the Godfather’ who masterminded a
massive pnds stlng 12 million tax fraud was joined behind bars
today (Wed) by nine of his henchmen.

Jailed for five years on Monday, Gultekin Ben, 45, was the
brains behind the swindle amongst garment factories in London’s
rag trade.

Southwark Crown Court heard the scam, known as ‘the Phoenix
fraud’ because it involved the constant liquidating of companies,
led to one of the biggest tax fraud cases ever held in Britain.

Judge Marcus Anwyl-Davies had already jailed five men – including
Ben – all from the Turkish or Turkish Cypriot community for their
part in the swindle at the end of a five month trial.

The arrest of the accused followed one of the biggest tax fraud
investigations ever staged in this country.

Sentencing the nine, the judge told them: ‘This was fraud
on a collossal scale.

It was a massive dishonest evasion of
liabilities.

‘
The judge said that greed had completely eroded the professional
morals of the fraudsters.

‘The stain of dishonesty upon you is immense,’ he added.

The court heard that companies taking part in the fraud made
large undeclared cash payments to their staff, many of them illegal
immigrants.

They also inflated their ‘expenses’ by claiming they had paid
out high wages to workers who, in fact, did not exist.

False invoices from bogus sub contractors were also used to
avoid paying VAT.

Judge Anwyl-Davies said the use of bogus invoices became so
common that it was considered normal practice in this part of the
industry.

‘This was a massive evasion of tax and moral scruples vanished,’
he said.

The racket was smashed following a vast operation by customs
officers under the codename ‘Operation Ankara.

‘
In April 1990 three hundred officers simultaneously raided
50 premises across London.

Sixty-one suspects were arrested.

The court heard that more than two million pounds was lost in
VAT as a result of the fraud.

Customs officers also discovered that there had been a loss,
in PAYE of some ten million pounds.

The court heard that 4,300 false invoices uncovered during the
investigation which was said to involve 80 companies, most of them
bogus.

Ben, who ran an accountancy practice from Kingsland Road,
Hackney, East London, was told by Judge Anwyl-Davies: ‘You prostituted
your skill for your own ends.

In my judgement you were ruthless in
pursuing your object and you manipulated and trampled on others.

‘
He added: ‘You are responsible for the shame and disgrace of
many others.

You encouraged them to take part in this fraud.

‘
Ben, of Rectory Lane, Sidcup, Kent, was ordered to pay a fine
of pnds stlng 100,000 in addition to his jail term and banned from
being a company director for five years.

Also jailed on Monday were: Kazim Aziz, 42, a travel agency
worker who sold false invoices for Ben, of Old Dover Road, Blackheath,
SE London, was jailed for three years, ordered to pay a fine of
pnds stlng 20,000, and disqualified from being a company director
for five years.

Metin Yorganci, 42, book-keeper, of New River Crescent, Palmers
Green, North London, was jailed for two years and disqualified for
five years.

Ahmet Ozturk, 45, director of Newall Fashions, of Murray Grove,
Islington, North London was jailed for two years.

Seyfettin Ozyigit, 48, director of Greenline Fashions, of Hamilton
Crescent, Palmers Green, North London, was jailed for two years and
ordered to pay a fine of 25,000 pounds.

They were all convicted of fraudulently evading VAT.

Five other men were acquitted.

The nine jailed today were: Ali Tosun, 36, a company director
of Sinclair Road, Chingford, who was jailed for two years and
disqualified from company directorship for five years.

He had denied
fraudulently evading VAT.

The remaining men had admitted similar fraud charges at the
start of trial five months ago.

Jailing them all the judge said
the offences were so serious each must go to prison.

Dursun Yilmaz, 45, a company director of Nightingale Road,
Edmonton, was jailed for two years, and director Ismail Soylu, 49,
of Merton Road, Walthamstow, were both fined pnds stlng 10,000 and
disqualified from being a company director for five years.

Kenan Balaman, 55, a company director of Fulready Road, Leyton,
was jailed for 21 months, fined pnds stlng 10,000 and disqualified
from company directorship for five years.

His son Mehmet, 29, a factory manager of the same address, was
jailed for one year and disqualified from being a company director
for two years.

Company director Maharrem Sever, 48, of Halford Road, Whipps
Cross, was jailed for 18 months and fined pnds stlng 5,000.

He too
was disqualified from company directorship for five years.

Serhan Naim, 33, a company director, of Victoria Grove, Stoke
Newington, and company director Nihat Gur, 37, of Wynchgate,
Southgate, were both jailed for two years and again was disqualified
from being a director for five years.

Unemployed Loki Miah, 34, of South Esk Road, Romford, who
admitted being a peddlar and author of false invoices, was jailed
for 18 months and disqualified from being a company director for
five years.

The court heard that Ben was a regular visit to Cyprus where
he owns a luxury villa.

Kazim Aziz was recruited by Ben for the purposes of setting up
bogus businesses and selling invoices.

Most of them were supplied
to Ben’s clients and he then arranged for them to be processed
through the accounts.

The Customs investigation showed that many of the fraudsters
were members of West End casinos where they frequently gambled away
thousands of pounds.

The Inland Revenue Special Trade Investigation Unit worked
closely with the Customs officers to smash the rag trade tax
racket.

ends