Li Liu, 26, and of Clay Pit Lane in Leeds, pleaded guilty to fraud by false representation and conspiracy to acquire criminal property and was handed a two and a half year prison sentence at Leeds Crown Court last week on Monday 20 October.
He was joined by Wanqing Yu, 25, also of Clay Pit Lane in Leeds. She also pleaded guilty to fraud by false representation and conspiracy to acquire criminal property, and was handed a 17-week prison sentence.
The court heard how from October 2021 to February 2025, Liu and Yu worked to abuse the Delay Repay compensation schemes offered by TOCs, using false identities, disposable email accounts, and international bank transfers to conceal their criminal scheme to fund their education and lifestyle.
The case was initially reported to BTP in November 2023 by CrossCountry Trains who identified the process Liu and Yu were using, finding that they had 447 fraudulent transactions to date. Other TOCs later found themselves to have also been the target of this operation by Liu and Yu.
Data obtained from CrossCountry Trains provided a vast array of information regarding Liu and Yu’s scheme, with a common theme amongst the transactions being the many fake names and non-residential addresses tied to them. Email addresses were also found to be single-use and Chinese in origin.
Another trait common amongst the transactions was the use of virtual bank accounts and cards used to move the money elsewhere. Certain bank transactions could be traced, including ones linked to a company that processes educational fees and others that showed cash withdrawals in Jiangxi, China.
Officers eventually tracked down Liu and Yu following enquiries with a mail redirection service that sent the delay repayment forms to Lui and Yu’s address instead of the false addresses they had put on their fraudulent forms.
Intelligence gathered from financial institutions showed that the sole source of funds for education fees paid by Liu were proceeds gained by delay repay refunds, while the majority of funds paid by Yu were from the scheme.
Once Liu and Yu were identified and their address confirmed, officers attended and arrested the pair. They were taken into custody and remanded until appearing in court earlier this week.
DS Alexandra Carter said: “I’m extremely pleased with the result in this case. Liu and Yu found a weakness in the system and relentlessly abused it for their own benefit at great cost to the train operating companies.
“It’s important to remember this isn’t a victimless crime. In defrauding the TOCs to fund their lifestyle, they’ve also made a mockery of the average commuters who have spent hard-earned money on train tickets – lost to these malicious criminals who worked at great lengths to conceal their wrongdoing.
“Thankfully, in the end we were able to track down Liu and Yu and bring them to justice, and I hope that this sends a message to anyone who would think of attempting anything similar.”
