A nan posed as an accountant in a scam potentially worth up to £1.2million.
Lyn Karran submitted fake expenses claims to HM Revenue and Customs on behalf of dozens of clients, swindling the public purse out of at least £300,000 in doing so. The 46-year-old is now beginning a lengthy prison sentence, only days after the birth of her first grandchild.
Liverpool Crown Court heard today, Wednesday, that the nan ran previously a firm by the name of LK Accounting Services. Between October 2015 and 2017, she acted as an "unauthorised tax agent" - making fraudulent repayment claims for her customers in order to "enrich herself".
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Karran, who is also known as Lyn Wilson, secured a total of £1.2million for 150 clients - most of whom were plumbers and heating engineers whose work she gained through word of mouth and liaised with via WhatsApp - during this period. Peter Killen, prosecuting, described how they were "generally on a PAYE taxation basis and unfamiliar with the self-assessment scheme".
She instructed them to register for self-assessment and provide her with their personal details, giving her control of their accounts. Karran, of Tithebarn Lane in Melling, never asked the workmen to provide receipts and never told them of the value of the claims being made in their names.
These included backdated payments from up to three years earlier. They paid her a flat fee of £150 plus 10% of the rebates earned, netting her around £190,000.
Karran's company also had a "misleading" website which "gave the impression it was a professional registered business". She "failed to follow the rules required of fee-earning tax agents" and did not register with HMRC or report that she was acting on behalf of others when completing self-assessment tax returns.
The amounts claimed triggered an automated response from software and led to an investigation into the 150 tradesmen, beginning in 2017. At this point, Karran ceased contact with her customers and stopped replying to messages.
She also "spent a great deal of time abroad" before returning to the UK for an interview with detectives in January 2019. The phones she had been using were never recovered by police, the fraudster claiming they had both since broken.
Karren "gave an account that her customers had given her information and that she had acted innocently in passing that on" before this first interview was stopped when she "became ill". The con artist gave no comment during a second.
Investigators looked at 31 of the accounts in question, whose payments amounted to £300,000. Clients were forced to repay the amounts received to HMRC at short notice with interest and penalties, which "caused financial difficulties".
The court heard that Karran had "spent all the money", with Mr Killen saying "there is nothing left". He added: "The defendant chose to blame her customers and deflect the attention from her to them."
She was previously jailed for 40 months in 2004 over another scam. While working for Drax Group, Karran used the energy company's credit card to make a series of purchases for herself.
These included "high value electrical items" totalling £6,300, as well as garden furniture and a holiday. She had also attempted to buy an £8,000 caravan.
Mike Haggerty, defending, told the court that his client has two children - the eldest of whom gave birth only 12 days ago. She also acts as a carer for her 75-year-old mum and husband.
Mr Haggerty said: "Up until today, she was a registered carer for her mother. She is, to say the least, concerned for her mother.
"Her husband is a man who is not in the greatest of health either. Again, the defendant cares for him.
"The defendant herself has her own difficulties. She suffers with anxiety and depression."
After a 10-day trial, Karran was found guilty of fraud by a jury on Friday last week. She cried in the dock as she was handed four-and-a-half years behind bars.
Sentencing, Judge Stuart Driver QC said: "At one extreme, the jury was told they could return a verdict of guilty if they were sure that a single transaction was fraudulent. At the other extreme, the prosecution say there were 150 transactions and the loss of revenue was over £1million.
"In my judgement, neither of those would lead the court to a fair and balanced basis for sentence. A judge's task is to interpret the jury's verdict.
"In this case, the prosecution took statements from 30 of the 150 customers - about 20%. The total paid to those 30 was £300,000.
"I am certain that, at the very least, that the criminality extended to that. You wrongly chose to place blame on others.
"You lied about your customers, saying it was them who was fraudulent and not you. Most have been told they have to repay the money with interest and fines or penalties.
"That has caused them hardship and distress. You are a woman in your 40s in poor health.
"You have been a carer for your elderly mother, your partner is in poor health and your daughter recently gave birth to your grandchild - the pleasure of which you will be denied for some time."
Karran was also told to pay a victim surcharge. Merseyside Police's Detective Constable Darren Devonport said: "Lynn Wilson’s actions were cold, calculating and deceitful.
"This fraudulent activity was quickly picked up upon by HMRC, and with support from Merseyside Police a joint operation was launched into her and her accountancy firm. We welcome today’s result at court and hope it serves as a warning to others wanting to commit such crimes."
Ian Hackett, assistant director of HMRC's fraud investigation service, HMRC, added: “Lynn Wilson was an unregistered tax agent who committed a brazen fraud and got found out. We urge anyone who is thinking of using someone to help them manage their tax affairs to read the advice on gov.uk about appointing a tax agent."
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