A construction company boss is facing a lengthy prison sentence after committing a tax fraud that ran to more than £7m.
Mark Stead, who was the director of Pink Innovations and Pink Services Ltd, a construction installation firm, lived an illegitimate life of luxury. The 49-year-old spent his ill-gotten gains on boats, caravans, holiday homes and putting his children through a private education.
But devious Stead also dragged four other people into his elaborate scheme – including his wife and brother, reports Hull Live. His brother David Stead, 61, was also told he faces prison.
The two men appeared at Hull Crown Court on Friday alongside Mark Stead’s wife Jennifer Everett, 44, Denise Milestone, 61, and Benjamin Wragg, 32. All had previously pleaded guilty to fraud charges except for David Stead, who was convicted after a trial.
Mark Stead ran the business on the Estuary Business Park, on Henry Boot Way, Hull, and in the village of Laceby near Grimsby.
From 2010 to 2018, Mark Stead embarked on a campaign of tax evasion at his two companies. During that time he pocketed nearly £7m by failing to pay VAT and almost £250,000 by deducting national insurance from employees’ pay, but failing to pass it on to Revenue and Customs (HMRC).
Between July 2015 and July 2017 the director, of Ulceby, near Grimsby, drafted in his wife and his brother, as well as Milestone, who was his personal assistant, and Wragg, an IT consultant, either to falsify documents or lie on his behalf. This was in order to cover up a paper trail of deceit when compliance officers from HMRC came to inspect the company’s records. During this time, some £2,235,000 of the £7m fraudulently gained by Mark Stead was pocketed.
Only Mark Stead and his wife, also of Ulceby, gained financially to any significant degree from the crimes. The others involved made only nominal financial gains, if any at all.
His brother David, of Stoke-on-Trent, managed the company for two years between 2015-2017, during which he falsified purchase lists and invoices. He denied any wrongdoing but was convicted after a trial.
The others all provided or passed on false documents, whether bank statements, invoices or employee records. Milestone, as Mark Stead’s personal assistant, also lied to the HMRC compliance officers about where her boss was so that he could avoid speaking to them.
Simon Gledhill, prosecuting, told the court: “When a review was to be carried out by HMRC in June 2017, that prompted a flurry of activity by those at the company in the preparation of false documents to justify the false VAT claims.”
Milestone met a HMRC compliance officer, but told her that Mark Stead was in hospital, which was not true. Mr Gledhill added: “On another visit, Mark Stead asked Ms Milestone to ‘take care of the VAT lady’ and she later replied in an email, ‘Team Stead strikes again’.”
Thanks to the fraud, Mark Stead and his wife Everett were able to live a lavish lifestyle, which was only possible due to the crimes that they committed.
Mr Gledhill said: “The couple benefitted from the fraud. It funded expensive boats and cars, along with school fees, investment in a motor racing team and property abroad. They could buy boats and caravans using the PAYE receipts they never paid to achieve the lavish lifestyle they wanted.”
None of the others benefitted much from the fraud, with Milestone and Wragg paid a salary for their work, while David Stead also came away with no major financial reward.
'Under his influence'
Danielle Graham, representing Mark Stead, said her client accepted he was going to jail for some length of time and that he was the one in charge of the fraud who instructed the others. But she said: “My client is of previous good character and he has never been in the criminal system before, so this significant sentence with have a major impact on him.
“He has seven children. They were only made aware this week he will be going to prison. He is remorseful and accepts, if not for him, none of the other defendants would find themselves in this position.”
Helen Chapman, representing Everett, urged Judge Mark Bury to suspend any sentence for her client. She said: “She did what she did at the direction of her husband. She was under the influence of him and he was always in the driving seat, but I accept she did enjoy the spoils from their offending.
“But the main concern if for her children. She has put in place plans if she is jailed, but the imprisonment of both parents will have a devastating impact on the children.”
David Stead’s solicitor, Claire Robinson, told the court that her client had never lived a lavish lifestyle, either before or after the offences were committed. She said: “He is a man of previous good character who only got involved out of family loyalty rather than financial reward. His involvement also related to a very narrow timeframe.”
The solicitor for Milestone, of Brocklesby, Grimsby, argued her client was very remorseful and was also involved heavily in the care of her grandchildren. She was also the sole carer of her husband, who was due to have open heart surgery soon. She urged the judge to suspend any sentence.
Wragg’s solicitor told the court his client had been recently diagnosed as autistic and would struggle with life in jail. He also said Wragg, of Barton-on-Humber, was suggestible and “goes along with things”. He said it had been five years since his client was arrested and he had been in no trouble since.
Judge Bury told the defendants he would need the weekend to consider all the evidence and mitigation he had heard. In remanding Mark and David Stead into custody, he warned them they would both be going to jail, with Mark Stead expecting to receive a long sentence.
He granted bail to the other three defendants and told them he had not decided whether they would be jailed, but warned them all “to prepare for prison”. They are all due to be sentenced today (Monday).
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