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UK – Fraudsters who scammed recruitment firms ordered to pay back their gains

14 August 2019

Two conmen who scammed three recruitment agencies for hundreds of thousands of pounds through an elaborate payroll scam have been ordered to repay their ill-gotten gains. 

Jason Brown and Norman King both pleaded guilty to multiple fraud offences in 2017 following an investigation by Cheshire Constabulary’s Economic Crime Unit.

The investigation into the Brown and King began in November 2013 when three Warrington-based recruitment agencies based reported that they had fallen victim to a payroll scam.

The recruitment agencies were not named.
The businesses lost more than £225,000 and all three named King and Brown as being responsible.

They reported how the pair had made false representations, claiming that they were managing directors of companies to which they had no association and then using the firms’ credit ratings to provide credit facilities. 
King and Brown registered a number of fake employees with the recruitment agencies using stolen ID documents and submitted fraudulent timesheets in order to claim wages in excess of £225,000. 
The investigation was then launched following the initial allegations and involved more than 100 witnesses. A total of 21 other companies from across the UK had fallen victim to the scam.  Brown and King were then both charged with multiple counts of fraud.
The pair stole a total £295,681.97. They were then jailed after they pleaded guilty to the charges, with Brown sentenced to two-and-a-half years in prison and King jailed for two years and three months. 

During a subsequent crime hearing the judge determined that Brown and King had earned more than £2 million through their criminal activities, including the Cheshire cases.
After hearing all the evidence, and assessing their wealth, the judge ordered the pair to pay back £140,000. Brown and King have to pay back £80,000 and £60,000 respectively, which will be used to help compensate their victims.