Two men have been jailed for two-and-a-half years after 50 people were conned out of more than £460,000 in a timeshare holiday scam.
In 2009 the crook Arthur Goddard, then 60, ran Graig Park Village Ltd, based in Denbighshire, with sales director Alan Hill, who at the time was 51.
Goddard was ordered to pay £600,000 in costs and compensation after fraudulent trading convictions at Mold Crown Court.
The judge told the men they had “tainted the good reputation” of the North Wales tourism industry.
The court heard that Goddard – who was banned from being a company director for eight years – had threatened the chief investigator, telling him: “I will come after you”, if he persisted. One could say that this statement was the ranting of a copped crook. The court ordered he was not fit to run a company and banned him from being a Director for 8 years.
He was also given 56 days to pay £111,200 costs to Denbighshire Council and £25,405 compensation to the victims. In respect the innocent consumers. He was also given six months to repay £461,651 gathered through the fraud.
Sales manager Hill was disqualified from being a company director for five years.
A £1 nominal order – not to be collected – was made against Hill, who is bankrupt.
However, the order means prosecutors can seek money from him if he comes into funds in the future.
The court heard some customers had been repaid, but three were owed £18,905 and the judge ruled that 13 victims should be paid £500 each for their emotional distress.
Judge John Rogers QC told the men: “You ignored your statutory obligations and deceived purchasers, and ignored their rightful requests for redress.”
During the trial, Goddard had told the jury he thought the investigation “was a waste of public money”.
The judge said: “Those words can come back to haunt you during the next few months of your life.”
The scam, between May and December 2007, involved inviting people on a free mini-break at Graig Park, Dyserth, on the condition they attended a sales presentation.
Many found themselves under severe pressure to sign up to timeshares in holiday lodges in Dyserth, the safeguards of the Timeshare Act 1992 were flouted, and many people were not informed of their right to cancel the agreement.
Most people were required to pay a deposit on the spot, usually £1,000.
The court heard the pair offered part exchange allowances, but their purchase prices were so inflated the part exchange became worthless.
In addition, the promise of taking over the existing part-exchange never materialised, so that customers found themselves liable for two sets of maintenance charges.
The investigation was launched following complaints to trading standards officials across the North of England.
The judge praised the “dogged persistence” of Philip Richards and the Denbighshire trading standards team, praising them for an “exemplary investigation” which nipped the fraud in the bud.
The TCA have been digging around and found a company which Mr. Goddard is still a director off and despite his ban. That company is Euro cellular Ltd. See here http://companycheck.co.uk/company/04498489/EURO-CELLULAR-LIMITED/directors-secretaries#people-summary
This enterprise also has a dubious set of accounts as the enterprise has 14.5 million in creditors and a similar amount of debtors. It does report that there is £300, 000 in the bank. However that sum is owed to other people and has not yet been paid out.
You might think that the story ends there with Mr. Goddards incarceration however it doesn’t.
Whilst in clink and swilling out every day, another story broke in that another fraud allegation is heading his way. It was reported in 2010 that HMRC had been duped and that they alleged that they had uncovered a fraud involving 20 million. Mr Goddard was basking in the rouges gallery again as he was indicted and a participant in that fraud as well see below.
Polegate man denies £20m VAT fraud
A man from Polegate is among 18 people who today denied being involved in a £20 million VAT fraud.
Andrew Brannigan, 45, of Southfield, Polegate, East Sussex is accused of cheating HM Revenue and Customs out of VAT paid upon alleged purchases and sales by two firms, Demravale and Euro cellular, between January 1, 2005 and December 31, 2007.
Another 14 men and a woman pleaded not guilty to cheating the public revenue when they appeared at Southwark Crown Court in London.
Four of the other men and two further defendants also denied conspiracy to acquire criminal property in connection with the fraud.
They were accused of pocketing the VAT paid upon alleged purchases and sales of mobile phones and other electronic equipment between January 1, 2005 and June 1, 2009.
All 18 defendants, who were granted bail, will face trial next year.
The four men charged with cheating the public revenue and conspiracy to acquire criminal property were: Gareth Johnson, 42, of Dar es Salaam, Tanzania; Mitchell Harvey, 42, of Station Road, Turriff, Aberdeenshire; Lee Hart, 35, of Breamer Drive, Bury; and Mark Brewer, 44, of Goughs Lane, Knutsford, Cheshire.
The 11 men and one woman charged with cheating the public revenue were: Lee Whittaker, 43 – previously of Milbury Drive, Littleborough – now lives in France; Martyn Davies, 29, of Beechfield Close, Rochdale; Jason Brierley, 42, of Claymere Avenue, Norden, Rochdale; Arthur Goddard, 61, of Cwittir Lan, St Asaph, Wales; Christopher Gibbs, 40, of Meliden Road, Prestatyn, Wales; Khanzada Khan, 62, of Chester Road, Northwich; Ricardo Rowe, 40, of Ince Lane, Elton, Chester; Andrew Fritzl, 30, of Lower Bethesda Street, Hanley, Stoke-on-Trent; Andrew Brannigan, 45, of Southfield, Polegate, East Sussex; Adrian Geston, 47, of Moorland Road, Leek, Staffordshire; Daryl Meek, 37, of Heathcote Street, Stoke-on-Trent; and Alison Shelton, 37, of Bignall End Road, Stoke-on-Trent.
The two men charged with conspiracy to acquire criminal property were Albert Amritan and, 64, of Arbroath Road, Reswallie, Forfar, and Geoffrey Johnson, 66, of Dar es Salaam, Tanzania.
The allegation made by the HMRC and against Mr Goddard obviously would have to be heard by the court and that trial would be at some time in the future. The complication at the first hearing was that he was incarcerated. The reporting then went silent and as a result a further interim hearing was scheduled and took place on the 7th of January 2013
The report was as follows:
A Bury man accused of involvement in a £20 million VAT ‘cheat’ scam is due in court on Monday.The man will be one of eight men trialled on April 16 at Kingston-Upon-Thames Crown Court, with the next trial provisionally scheduled for January 7 2013.
One woman and 15 men are alleged to have swindled the money from HM Revenue and Customs through purchases and sales by two firms Demravale and Euro cellular Ltd, between January 2005 and December 2007.
Four of the men, including Hart, also denied conspiracy to acquire criminal property in connection with the fraud.
They were accused of keeping VAT paid on alleged purchases and sales of mobile phones and other equipment.
That trial will be commencing shortly, where by Mr Goddard will face the allegations.
Of course hell and high water will be rained down on him shortly.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk