Council to write-off fraudster's debt of more than £50k

THURROCK Council has agreed to write-off a debt of nearly £54,000 owed by a fraudster.


The debt owed was racked up by someone fraudulently claiming housing benefit between April 2003 to April 2009.


Despite “intensive investigation” and various court and committal orders at Basildon Crown Court, the council claims it has “not been possible to trace the debtor”.


According to the Council’s Constitution, the write-off of any debt over £25,000 must be considered by the Council’s Director of Finance and Corporate Governance and the Monitoring Officer before it is approved by the Cabinet.
 

The exact value of the debt is £53,731.61 and will be paid for out of the council’s general fund.
 

Speaking at the cabinet meeting, Cllr Phil Smith, the portfolio holder for Central Services warned that the crook will be dealt with if caught. He said: “What we would like to assure residents is that although we are going to take this debt off the books, the debt will stay there.


“If that person is found to come back into our area we will pursue them.
“We’ve gone after them twice in the courts and we’ve won both court cases so it’s just a matter of if we catch them, we will get that money back off of them.”

Comments(13)

Thurrockbob says...
11:07am Tue 18 Sep 12

Probably back in Nigeria!

C.E.R. says...
12:57pm Tue 18 Sep 12

This is scandalous. Never mind, just put our council tax up and we will pay it!
I would like to know why the debtor wasn't pursued earlier to stop the debt rising.
I agree with Thurrockbob!!

Bernard 87 says...
2:52pm Tue 18 Sep 12

"although we are going to take this debt off the books, the debt will stay there"

This makes no sense. You either write off the debt and close the case altogether or you leave the debt outstanding in the hope of catching the fraudster.

"we will get that money back off of them.”

This is more hot air from this councillor. They will not get the money back. As far as I'm concerned all this benefit fraud is what happens when you have a system of dishing out money, which is supposed to be in place as a safety net, to anyone who applies without proper checks.

I don't know if this person is from Nigeria or anywhere else in the world for that matter so I'm not going to assume so

Freddy K says...
3:33pm Tue 18 Sep 12

This is probably only the tip of the iceberg, it would be interesting to see just how much this sort of fraud is costing the council or indeed the country.

Why was the debt allowed to escalate to such a sum over a 6 year period, how intensive were the investigations, when was the first court order made and was the person still allowed to claim after this was served?

There are more questions than answers regarding this subject

jb411 says...
4:27pm Tue 18 Sep 12

Tip of the iceberg - I believe they have a £3m debt in uncollected council tax. No wonder Corringham offices is to close. How come this individual was allowed to rack up such a large debt before the bailiffs where on them. Maybe there should be more security and identity checks before they hand over the money in the first place. This person probably moves from borough to borough with different identities anyway. Maybe TBC should put some of their staff on checking these people.

Dave_ says...
5:24pm Tue 18 Sep 12

£54K of fraud takes some accumulating and if nothing else exposes the lackadaisical approach the council has taken in
1 policing the handouts; who gets them, why etc
2 pursuing it before it got to these proportions

Again I can’t say where this individual is from, but when it comes to some services you have to have a qualifying connection to the borough and or lived there for more than 6 months. This should apply doubly to benefits.

Also the fact that there is council tax outstanding, when they are proposing a rise, is nothing short of moronic. There are people who can’t/won’t pay now, so all you end up doing is making the situation worse, amazing piece of logic there. I find it amazing that the finances of the council are treated in such a slap dash mannner. I would put all directors, heads and senior management in the council on a third of their salary and suspend all bonuses and other niceties and suspend all cllr pay and allowances, until the situation is resolved.

claysman says...
10:37pm Tue 18 Sep 12

this council is a f?????g joke i was late with my council tax and they wanted to take me to court where is the justice

Kezza25 says...
11:52pm Tue 18 Sep 12

Same here Claysman, my husband and I got into financial trouble when I was made redundant, we could not get any help while I was looking for work and were relying solely on my husbands wages. The bailiffs were sure to find us when we were 3 months late (even after informing them).

SaveOurStanford says...
9:01am Wed 19 Sep 12

Why should the decent taxpayers have to suffer and pay this? I think the Staff who allowed such a scam and many others should have this taken away from there wages, bonuses and NO Xmas party ! Realy p155ed off that someone can come into our country 5cr3w us over and leave a trail of debt of for 6 years and just leave and enjoy there wealth of my back and my familys hard earned taxes i had to pay.
Imagine someone out there is cruising in style whilst we have to sit os southend for break seems unfair. TBC Staff can pay this back.

DannyButcher says...
12:01pm Wed 19 Sep 12

SaveOurStanford, we do not live in a dystopian film, so holding staff responsible for someone else committing fraud is pretty crazy.

If someone wants to commit fraud, and lies about things, how the hell do you think staff should be held directly responsible? Pretty ridiculous as far as suggestions go, so I'll take your last post as some sort of misguided joke.

Marcus P says...
12:05pm Wed 19 Sep 12

Whilst we don't know the ethnic origin of the 'fraudster', it is safe to say they will most likely be a foreign national as they have 'disappeared'.

All foreign nationals should have a five year qualifying period before welfare subsidies like Housing benefit can be claimed.

If this common sense ruling was introduced fraud of this type would diminish substantially.

Too much ‘English money’ is given away to people who made no contribution to this country.

Bernard 87 says...
1:39pm Wed 19 Sep 12

All good points Marcus but the reality is that no politician be them Labour or Conservative will admit this problem. The whole point of immigration is supposed to be to move to a country for a better life using the skills that you have. However in Britain both main parties seem to be in favour of allowing mass immigration as well as dishing out help to all when needed. That way it stops the risk of them being accused of racism. I had hoped for some bold policies on this from the government but I'm still waiting....

More of this will occur in the future while the council will struggle to find the culprits however you can bet your bottom dollar that people like Kezza will feel the full force of the council when they fall into difficulty and inform the council straight away.

However since the article doesn't state the origins of the culprits I will not assume that they are immigrants especially considering the story in the Gazette only a month or so ago about the English couple from Bulphan.

Farmhouse France says...
4:21pm Wed 19 Sep 12

Marcus P wrote:
Whilst we don't know the ethnic origin of the 'fraudster', it is safe to say they will most likely be a foreign national as they have 'disappeared'. All foreign nationals should have a five year qualifying period before welfare subsidies like Housing benefit can be claimed. If this common sense ruling was introduced fraud of this type would diminish substantially. Too much ‘English money’ is given away to people who made no contribution to this country.
I have to agree with you Marcus P. I'm not sure that anywhere else in Europe or the world for that matter hands out tax payers money so willy nilly.
Friends of mine got into trouble in France and before they were given any help they had to attend a college and learn to speak fluent French. We need tougher rules in place.

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