A trader in disability equipment swindled more than £1m from the HMRC to fund a lavish lifestyle and pay off his gambling debts.
Nicholas Duffy, 59, appeared at Liverpool Crown Court today (Friday) to be sentenced after pleading guilty to two charges of VAT fraud and of money laundering.
The court heard that Duffy, of Worcester Road, Bootle, had started a business called Market Mobility in 2005, for the sale of new and used mobility equipment. These products were zero rated for VAT purposes, but over a period of nine years Duffy, as the sole trader, had claimed VAT back from HMRC to the value of nearly £1.4m.
READ MORE : Sex offender found 'unresponsive' on industrial estate with genitals cut off
Peter Killen, prosecuting, said: "The figures given by the defendant to the HMRC on his VAT returns were fictitious. From August 2010 the defendant was effectively not trading, but he managed to secure substantial VAT repayments for a nine-year period until November 2019."
Mr Killen said Duffy siphoned off the dishonest money he obtained into various bank accounts, with £518,000 going into one which he used for his own personal expenditure, such as holidays, social activities, motor expenses, and household bills. A second account held £438,000, while a third consisting of £285,000 was similarly used on personal expenditure.
When he was eventually brought to account, Duffy accepted he had been dishonest, although initially he claimed it was over a smaller time period of two years. He said he needed the money to pay off gambling debts and that he owed money to loan sharks.
Defending, Umar Shahzad said Duffy was a man of previously good character who had accepted his guilt at the earliest opportunity.
Mr Shahzad said: "The defendant does not attempt to minimise his offences. He had been gambling, and incurred debts of over £200,000. He was under immense pressure to pay this off. It had spiralled out of control and he likened it to 'trying to swim in the mud.'
"He is deeply ashamed of his actions and is remorseful. He understands the severity and the impact that his criminal activity has had on other people."
Mr Shahzad added that Duffy had been diagnosed with cancer and was receiving chemotherapy, and was also sole carer for his 90-year-old mum. The charges had been hanging over him for three years and had had a significant impact on his mental health, leading him to take medication for anxiety and depression. He had been working as a driving instructor for the past three years after his offences came to light. He had also invited refugees fleeing the war in Ukraine into his home.
The judge, Recorder Andrew McLoughlin, told Duffy that he had created fictitious VAT returns for nine years even though he effectively had no business and had "sat there at home."
Mr McLoughlin added: "As a consequence of this you obtained dishonestly from the state almost £1.4m. Of this, more than £1m was for your own personal expenditure. This leaves me in no doubt whatsoever that the vast bulk of this money can be accounted for in terms of personal greed. You were living a life of luxury.
"This was utterly dishonest behaviour. There was not even the remnants of a business."
Duffy was jailed for a total of 40 months, of which he will serve half in custody and the remainder of his sentence on licence in the community.
READ NEXT :
Woman stabbed homeless victim with broken wine glass then fled to Ireland
The Range closed over 'medical incident' as air ambulance lands
Mum who can't heat home asks 'how can I afford to bury son?'
Baby 'bitten from head to toe by spider beetles'
Murderer tried to kill girlfriend's ex-lovers hours after killing her
