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One of Britain's most prolific fraudsters and money launderers, who owned a stately home, a helicopter and a yacht, has been ordered to pay back £26m that he made from an elaborate swindle - or face a further 10 years in prison. The order is part of an attempt to recoup millions of pounds stolen from the Treasury in a series of VAT frauds.
Craig Johnson, 35, is already serving a twelve-and-a-half-year prison sentence for his part in a fraud that resulted in a total of £138m being stolen in what is known as a "missing trader" or "carousel" fraud.
This week, a confiscation order secured against him at Wolverhampton crown court required him to pay back the proceeds of the fraud.
"This is one of the largest thefts from public funds that has been brought before the courts following our investigations," said Robert Alder, assistant director of criminal investigation for HM Revenue and Customs. "It has resulted in one of the longest prison sentences and one of the largest confiscation orders ever secured.
"The outcome of our investigations will result in vital funds being restored to the nation for investment in public services." He said that the aim was not only to jail the fraudsters but "to reclaim their criminal profits and put an end to their luxurious lifestyles".
Under the order, Johnson was ordered to repay more than £26m, with £8m to be paid within the next 12 months and the remainder within a further 12 months.
Among his assets, which have now been restrained, are the stately home Meaford Hall, a helicopter, yacht, two other properties and a number of prestige cars including an Aston Martin, Ferrari and two Bentleys. His Rolex watches and diamonds are also subject to the confiscation proceedings.
Meaford Hall, near Stone in Staffordshire, a grade 2 listed building in 22 acres of land, is valued at between £2.5m and £3m. Johnson also had interests in racehorses and properties abroad. Two other defendants from the 12-strong operation have also been ordered to pay back the proceeds of the fraud.
A further confiscation hearing will take place in January for other members of the gang. The investigation, codenamed Operation Emersed, was linked to two parallel inquiries codenamed Operation Shepherd and Operation Shoot, which in total uncovered a £138m fraud.
The "missing trader" or "carousel" fraud involves claming back VAT which has not been paid on goods.
In the fraud in which Johnson was involved, the goods on which unpaid VAT was falsely claimed were mainly mobile phones and computer chips. Johnson's role was to launder the money in a series of property deals in an attempt to hide the paper trail.
The frauds are popular with career criminals as there is no immediately identifiable victim and because they are difficult to investigate. The inquiry into Johnson lasted more than five years.
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