A Bulgarian criminal gang responsible for the largest benefits fraud in UK history has been ordered to repay a mere fraction of the millions they stole from the public purse.
The Fraud and the Sentences
The five fraudsters – Galina Nikolova, Tsvetka Todorova, Gyunesh Ali, Patritsia Paneva, and Stoyan Stoyanov – were handed a combined prison sentence of 25 years in 2024 at Wood Green Crown Court. They masterminded a vast operation, submitting thousands of false claims for Universal Credit between 2016 and 2021, and also admitted to money laundering.
All members of the gang, with the exception of Gyunesh Ali, have now been released from prison. They are currently on immigration bail, awaiting deportation back to Bulgaria.
A Fractional Recovery for the Taxpayer
Despite defrauding the Department for Work and Pensions (DWP) of an estimated £53 million, a proceeds of crime hearing in December revealed that authorities will only recover around £2 million. Prosecutor Gareth Munday explained that a significant portion of the stolen funds had been moved overseas, placing it beyond the immediate reach of UK authorities.
Mr Munday outlined the challenges, stating: “A defendant cannot be held liable under the [Proceeds of Crime Act] for losses they themselves did not obtain.” He emphasised that while the public heard a loss figure in the tens of millions, the ‘benefit’ obtained by the defendants was much lower, and the Crown Prosecution Service (CPS) and DWP had taken every possible step to reclaim what they could.
Where Did the Money Go?
During the hearing, Judge David Aaronberg KC pressed the prosecution on the whereabouts of the missing millions. “If money was obtained from the Department for Work and Pensions for people who never existed, where did that money go?” he asked.
The prosecutor responded that some money had been funneled into bank accounts specifically created for the false claims, but investigators could not definitively link these accounts to Nikolova or her co-defendants. He concluded that the cash was accumulated over five years, the “difference has been spent”, and there was no realistic prospect of Nikolova being able to repay the full amount.
This case highlights the severe difficulties in recovering public money once it has been dissipated or moved abroad by organised criminal groups, leaving taxpayers to shoulder the vast majority of the loss.
