Two people have been fined for committing benefit fraud by failing to declare their savings on benefit application forms.
Islington Council prosecuted two islington residents. An Inland Revenue fraud initiative matched bank and building society accounts against Islington Council's benefit database in cases where income tax paid on the interest indicated that the amount held exceeded the £16,000 threshold for benefit.
On 9 August 2005 at Highbury Corner Magistrates Court, an islington resident pleaded guilty to making false statements on Council Tax application forms to Islington Council in 2001, 2002 and 2003. an islington resident now retired, had applied for Council Tax Benefit on the property that he owns in Mercers Road. The court was advised that, in the application forms, he had failed to state that he had savings accounts as well as shares in Halifax plc. As a result, he received over £6,000 in Council Tax Benefit. Islington Council's Benefit Security team uncovered accounts which held in excess of £150,000. An islington resident repaid the overpaid benefit in June 2005 and was fined a further £6000 (£2000 for each application form) together with full costs of £420. He advised he would be in a position to pay all the amount within 14 days.
On 23rd August 2005, an islington resident, pleaded guilty at Highbury Magistrates Court to making applications for Housing Benefit and Council Tax Benefits without advising the Council that, in 2001 and 2002, he had capital in excess of £30,000 in bank accounts. An islington resident, who was unemployed at the time he made the false benefit applications, had declined to be interviewed by Islington Council's Benefit Security team about the fraud but this did not prevent the Council from prosecuting him. He repaid in full the Housing and Council Tax benefits he had received as a result of making the false claims, amounting to over £7500 but he was also fined a further £2000 and ordered to pay costs of £310.
Islington Council has already applied 50 sanctions for benefit fraud during the financial year commencing April 2005, including cautions and financial penalties as well as 8 successful prosecutions, two more than for the whole of the previous financial year.
Cllr Jyoti Vaja, executive member for housing and community safety said:
"Benefit fraud is not a victimless crime - it steals money from the tax payer and stops money from getting to those who are genuinely in need.
Catching benefit cheats is in all our interests and as a council we will continue to bring these criminals to justice."
Ann Lucas, Homes for Islington Board Chair said: "Benefits are meant for those who are truly in need. It is unfair to all council residents to illegally avoid rent charges. Benefit fraud cannot be tolerated and Homes for Islington will continue to work with the Council to ensure that those residents who commit this crime pay the penalty for their actions."
ENDS
Please Note:
The identifying details of the persons referred to in this press release were removed on 16 Feb 2011, at the request of one of the individuals. For a copy of the original press release please contact Media team http://www.islington.gov.uk/Council/CouncilNews/PressOffice/mediaoffice.asp
Page Last Updated: 17 February 2011