A gang of shameless Bulgarian grifters who plundered £54million from UK taxpayers in the biggest benefits con in British history used their ill-gotten gains to fund a lavish lifestyle.
During a four-and-a-half-year spree, the gang of five crooks used a combination of fake identities and real customers to make roughly 6,000 fraudulent Universal Credit claims, operating out of three ‘benefits factories’ in north London.
They splashed out their cash on designer clothes, watches and even a high-end Audi sports car. On social media they shamelessly flaunted expensive spa breaks and posted snaps of them holidaying abroad.
In one post, two of the fraudsters – Galina Nikolova, 38 and her 27-year-old lover Stoyan Stoyanov – boasted about a luxurious trip to Turkey, where they visited Istanbul’s famed Grand Bazaar, posing together in designer DKNY shirts.
The pair of con artists also shared a snap canoodling on a trip to a luxury spa in Manchester. And Nikolova posted a picture of bunches of roses, gifted by her ‘love’.
While in a different post, a pouting Nikolova filmed a trip to Birmingham where she visited the Aston Hall stately home before watching a match at Villa Park, the home ground of Aston Villa’s football club.
Another clip recorded by the gang, showed one of them shamelessly showering their flat with hundreds of £20 notes, while a woman scrambles on her hands and knees to pick them up.
Nikolova, Stoyanov, 27, Tsvetka Todorova, 52, Gyunesh Ali, 33, and Patritsia Paneva, 26, all entered guilty pleas at Wood Green Crown Court which were yesterday accepted by the CPS
Their criminal convictions mark what is the largest benefit fraud prosecution and investigation ever brought to the courts in England and Wales – with the gang now facing years behind bars.
Prosecutors said they operated from three ‘benefits factories’ in north London.
One of the hubs was behind a functioning corner shop selling groceries. The group appeared to be hiding in plain sight – with Nikolova posting photos on social media smiling and posing behind the counter of Antonia’s Foods supermarket in Wood Green.
The store, in High Road, specialised in Bulgaria, Turkish, Romanian and Polish foods.
The enormous haul of money gained from their ‘complex financial web’ of claims was laundered through a number of accounts, then withdrawn in cash – with £750,000 in bank notes found stuffed in suitcases at one of their homes.
Investigators who arrested the gang and searched their properties also discovered hundreds of ‘claim packs’ containing forged and false documents, and more than 900 digital devices.
Prosecutors said the gang used the benefits system ‘like a cash machine’ and on one of the seized mobile phones was a video showing the fraudsters showering their flat with hundreds of £20 notes.
The businesses the criminals operated claimed to assist people with obtaining a national insurance number and benefits to which they were entitled.
But between October 2016 and May 2021, the organised criminal group made about 6,000 fraudulent claims.
They were supported by forged documents including fictitious tenancy agreements, counterfeit payslips and forged letters from landlords, employers and GPs.
If any claims were rejected, the fraudsters would persevere until they were approved.
All five were arrested on May 5, 2021, as part of the Met’s Operation Volcanic but Ali fled to Bulgaria following his release under investigation.
He was extradited back to Britain in February last year and eventually admitted conspiracy to make false representations, possession of articles for use in a fraud and possessing criminal property.
As investigators searched through their homes they found hundreds of ‘claim packs’ containing forged and false documents were found and seized, as well as bundles of cash stuffed in shopping bags and suitcases, a luxury car and designer goods including watches, jackets, and glasses.
When faced with the large amount of incriminating evidence which included encrypted messages, CCTV footage, forged documents, seized digital devices and bank statements, the defendants eventually all pleaded guilty.
All five will be sentenced at Wood Green Crown Court on May 28.
As they conducted their mastermind fraud, Nikolova would post on social media living a seemingly normal lifestyle, often cuddled up next to one of her partners in crime Stoyanov.
On one occasion throughout their criminal spree, the couple are seen posing at a spa in Manchester. In another they are seen holidaying in Turkey together. Nikolova also shared pictures of bunches of roses, gifted by her ‘love’.
Other snaps of the crooked duo show them cuddling up together on a sofa or enjoying lavish trips to Istanbul.
Meanwhile, videos posted from Nikolova show her taking day trips to Aston Hall and going to see a match at Aston Villa’s stadium.
Nikolova is also seen standing behind the counter of Antonia’s Foods in Wood Green in June 2020, pouting at the camera alongside an unknown man.
The Bulgarian food shop, which sold a range of meats, cheeses and other delicacies, located on High Road, has accounts overdue with Companies House in the process of striking it off its register.
Shameless Nikolova even boasted online about what luxury trips she had her eyes on next, sharing a video of the idyllic Indonesian beach at Penida Island, declaring: ‘#mynextdestination.’
Specialist Crown Prosecution Service prosecutor Ben Reid said: ‘This case is the largest benefit fraud prosecution ever brought to the courts in England and Wales.
‘This was an industrial-scale fraud committed by an organised criminal group.
‘They carried out a sustained attack on a system designed to support the most vulnerable people in our society and treated it like a cash machine to fund their own lavish lifestyles.’
‘These convictions mark what has been the largest benefit fraud prosecution and investigation ever brought to the courts in England and Wales.
‘For years, these defendants were involved in an organised criminal gang which conspired to create thousands of false claims for Universal Credit, at a staggering cost of more than £50 million to the taxpayer.’
Mel Stride, Secretary of State for the Department for Work and Pensions, which led the probe with the CPS, said: ‘Building on our success in preventing £18 billion going into the wrong hands in 2022/23, these convictions underline our commitment to protecting taxpayers’ money.’
Paul Maynard MP, the minister responsible for tackling benefit fraud, added: ‘Our investigators are working tirelessly to catch benefit cheats and this case builds upon our plan to save £1.3 billion on fraud and error.
‘At the same time, our Fraud Plan will help us implement a long-term strategy to minimise fraud and error and ensure value and fairness for the taxpayer.’
The CPS Proceeds of Crime Division will now pursue confiscation proceedings against the convicted gang members.
Meanwhile, the Government is currently legislating for new fraud powers which will allow the DWP to request data from third parties, such as banks, that could show signs of potential benefit fraud and potentially save the taxpayer up to £600 million over the next five years.
Universal credit was launched in April 2013 to replace six other benefits funds.
It provides monthly payments to people who are on low incomes or out of work.
William Turner is a seasoned U.K. correspondent with a deep understanding of domestic affairs. With a passion for British politics and culture, he provides insightful analysis and comprehensive coverage of events within the United Kingdom.
