Bulgarian benefits fraudster carried on false claiming after arrest

Stoyan Stoyanov used an array of forged documents for the claims

Credit: Central News/CPS

A Bulgarian who helped orchestrate the biggest benefits fraud operation ever uncovered in the UK kept making fraudulent claims after his arrest,a court heard.

Galina Nikolova,38,Stoyan Stoyanov,27,Tsvetka Todorova,52,Gyunesh Ali,33,and Patritsia Paneva,26,all admitted stealing upwards of £50 million of taxpayer money over four-and-a-half years.

Stoyanov continued to help process fraudulent claims at the gang’s “benefits factories” after his arrest in May 2021,Wood Green Crown Court was told on Wednesday.

False claims were made using an array of forged documents for Universal Credit for real people who were “nearly always Bulgarian” and who “were complicit and also gained financially”.

They claimed the people were living and working in the UK and therefore entitled to benefits.

Stoyan Stoyanov and Galina Nikolova

Credit: Daily Mail

The fraud was only uncovered after a policeman in Sliven,Bulgaria,tipped off British authorities when he noticed his city was suddenly awash with cash and criminals who were “living like barons”.

The Telegraph previously revealed that thousands of people in Sliven,many of whom had never visited Britain,were receiving up to £2,500 a month in UK benefits.

Inspector Vassil Panayotov,who alerted police in Britain,said the true scale of the fraud is likely to be hundreds of millions of pounds higher than estimated.

Stoyanov was the partner of Nikolova who prosecutors alleged was one of the leaders in the conspiracy.

The couple were arrested at their home in Wood Green,north London on May 5,but two days later Stoyanov was back processing fraudulent claims.

The court heard that Stoyanov’s role in the conspiracy was to “act as a conduit for those higher up in the chain”.

Tom Little KC,prosecuting,said: “Despite being arrested…Stoyanov continued the criminality. “

He assisted with the final processing of 78 claims,the majority of which he looked at from Antonia Food supermarket where there was an office owned by Nikolova. It has been described as a “benefits factory”.

In total,Stoyanov defrauded the taxpayer of a further £17,000.

Although the claims had already been started before his initial arrest,he went back into the Universal Credit system to add further details of false claimants.

To support the claims the gang would produce forged documents including fictitious tenancy agreements,counterfeit payslips and forged letters from landlords,employers and GPs.

Stoyanov was found in possession of documents belonging to a claimant when he was arrested again on Sept 9 2021.

Alisdair Williamson KC,defending,told the court that Stoyanov accepted he had been “thoroughly dishonest”.

He said: “It is an unattractive feature of his case that he continued his behaviour after his arrest.

“He was dealing in his activities with a relatively small number of claims which he had made on behalf of his family and friends.”

Mr Williamson said Stoyanov was now remorseful and his actions “sit heavily upon him”.

Stoyanov arrived in the country in August 2020. After initially getting a job legally in construction,he claimed he was “cheated of his wages” and left penniless.

The court previously heard the gang had thousands of “customers” and joked about the inability of the DWP to catch them in messages shared on WhatsApp.

The police raid Antonia's Food in Wood Green,north London

Credit: Crown Prosecution Service Media/YouTube

After being tipped off by Mr Panayotov,the DWP conducted its own investigation before launching a series of raids,including one on the grocery store and another on Nikolova and Stoyanov’s flat.

At the property,detectives found £750,000 in cash as well as a large amount of designer clothing,jewellery and watches.

Among them were two Emporio Armani watches,two Versace watches,Gucci shoes and Chanel trainers.

The court also heard in mitigation for Nikolova that while she was a leader in the fraud there were others who had not yet been caught.

Tom Little KC,previously said there were active investigations into multiple people suspected of involvement.

Paneva,who was described as carrying out the “donkey work” for the group,said she often worked until 3am processing fraudulent claims for Nikolova.

She said she worked from a windowless room at the back of Antonia Food for £80 a day.

Paneva travelled to the UK with her family in 2016 after her father got a job here.

Took out student loans

She said that doctors looked after her mother when she was ill and she herself had taken out student loans to study at Sunderland University.

She added: “This country gave us a wholesome life and for that I will be forever grateful. I am not sorry I got caught. I am truly sorry I wronged this country. I will never break the law again in any way. I just want to make it right.”

The court heard that Ali,who was the original architect of the fraud,had been a model prisoner since he was returned to the UK.

Ali flew to Bulgaria following his initial arrest before being extradited and remanded in custody.

The court heard he had “excellent references”,was getting qualifications,and had become a prison listener.

The gang,who have been supported in court by dozens of family and friends throughout the three-day sentencing hearing,pleaded guilty to fraud and money laundering charges in April 2024.

Judge David Aaronberg KC said he would sentence them on Thursday.