Esher man jailed for 12 years after turning charity into "illegal money-making scheme"

John Davies, 58, from Harvest Court in Esher, was one of three men who claimed they were trustees and associates of two charities for five years, submitting tens of thousands of Gift Aid repayment claims to Her Majesty's Revenue and Customs (HMRC).

John Davies, 58, and Olsi Vullnetari, 37, and Ben Davies, 31.

Davies and Olsi Vullnetari, 37, of Charney Avenue, Abingdon, claimed they were trustees and associates of two charities, the Sompan Foundation and the Kurbet Foundation.

Both charities had been legitimately set up to support women and children in crisis and poverty but when the original founder died, Davies turned them into an "illegal money-making scheme", an HMRC investigation found.

The pair submitted tens of thousands of Gift Aid repayments, but every donation they claimed them on had been faked. 

The men used the names and addresses of real people, sometimes dead, to claim the Gift Aid.

The scam was orchestrated by Davies with £5,038,198.63 being paid to the registered charities.

The men produced false paperwork to support the Gift Aid claims and the proceeds of the fraud were then laundered through various bank accounts, including accounts in Hungary, the Netherlands, Thailand, South Africa, America, the UAE and Ireland, and through a separate Hungary-based ‘charity’, The Tosk Foundation, which was set up by Davies.

The Tosk Foundation, whose headquarters are located near the Davies family home in Balastya, Hungary, received around £1.6m in payments.

Davies' son, Ben Davies, 31, was also jailed for associated money laundering.

All three men were arrested between May 2013 and June 2015, and later charged with cheating the public revenue and money laundering.

Davies and Vullnetari were found guilty of all charges on April 8, 2016 after an eight week trial.

Benjamin Davies was found guilty of one count of money laundering on the same date. 

They were sentenced at Southwark Crown Court on May 13. 

Davies received 12 years, while Vullnetari was jailed for seven years. 

Davies, 31, of Melrose Avenue, Wimbledon when he was arrested and now from Manchester, was jailed for three years. 

David Margree, assistant director, Fraud Investigation Service, HMRC, said: "These fraudsters despicably extorted £5 million from honest British taxpayers. Gift Aid is in place to support legitimate charities and offer extra funding, not for the financial benefit of criminals who abuse the system.

"HMRC and our partner, the Crown Prosecution Service, have brought to justice these fraudsters who, had they not been stopped, would have continued to rob public services and genuine charities of a great deal more."

Were you victim to this scam? Email the newsdesk on rebecca.taylor@newsquest.co.uk