HMRC’s promise to chase lockdown fraudsters kicks off as West Midlands businessman arrested over alleged £495k furlough fraud
A businessman alleged to have committed a £495,000 furlough fraud has become the first to be arrested in connection with the Government scheme.
The 57-year-old man, who has not been named, was quizzed by officers from HMRC on Wednesday in connection with his misuse of the Coronavirus Job Retention Scheme (CJRS).
HMRC said it was the first such arrest to happen.
Officers executed a search warrant in Solihull, in the West Midlands, seizing computers and other digital devices, while funds held in a bank account relating to the arrested man's business have been frozen.
Richard Las, acting director, Fraud Investigation Service, HMRC, said: "The Coronavirus Job Retention Scheme is part of the collective national effort to protect jobs. "The vast majority of employers will have used the CJRS responsibly, but we will not hesitate to act on reports of abuse of the scheme. This is taxpayers' money and any claim that proves to be fraudulent limits our ability to support people and deprives public services of essential funding”.
More than £27.4 billion has been claimed through the CJRS scheme, supporting 1.1 million employers and 9.4 million furloughed jobs.
HMRC added that the man was also arrested in relation to alleged money laundering offences and suspected multimillion-pound tax fraud. A further eight men from across the region have also been detained as part of this linked investigation, which involved the deployment of more than 100 HMRC officers to 11 locations. Computers, digital devices, and business and personal records were also seized during the raids.
Any member of the public, including any ICB student or member, who is concerned that their client or employer might be abusing the scheme, should report their suspicions to HMRC online or contact the ICB confidential Whistleblower line on 0203 405 7581.