A man who deliberately avoided paying tax on the income he received, cheating the public revenue out of £300,000 was jailed for 38 months, on Friday, 29 June, following a five-year investigation by the Metropolitan Police Service (MPS) and Her Majesty’s Revenue and Customs (HMRC).
As part of the second strand of an investigation, known as ‘Octopod’, the finances of Michael Adams were analysed as he appeared to be living a luxury lifestyle, despite the fact he only had a small amount of legitimately declared income.
Adams was arrested and prosecuted as the result of a joint investigation between the Met’s London Regional Asset Recovery Team (RART) and HMRC, supported by the Met’s Criminal Finance Teams.
Adams pleaded guilty to a charge of cheating the public revenue contrary to common law on January 9.
At Croydon Crown Court on Friday, 29 June, Michael Adams, 53 (30.04.65) of Windermere Avenue, Finchley, Barnet, was sentenced to 38 months after he pleaded guilty to cheating HMRC out of a minimum of £300,000 between 6 April 2006 and 2 April 2014.
A total of 10 people were convicted and sentenced in relation to ‘Octopod 2’ after a trial in August last year.
Detective Superintendent Nick Stevens, Head of the Met’s Criminal Finance Team, said: “Adams deliberately avoided paying tax on the income he received from a fraudulent business. The undeclared income was used to fund a luxury lifestyle including private school fees for four of his children, purchasing high value vehicles and taking an annual seven-week long summer holiday with his family to Portugal.
“This investigation is a good example of joint working with Her Majesty’s Revenue and Customs (HMRC) and should send a warning out to anyone who thinks they can get away with evading paying their fair share of tax on their income.”
Detective Chief Superintendent Mick Gallagher, head of the Met’s Organised Crime Command, said: “This conviction marks the end of Operation Octopod, a five-year long investigation into an organised criminal network involving several members of the same family. Evidence gathering against the criminal group was a considerable challenge due to their awareness of covert law enforcement tactics and their disciplined approach to operational security. However, hours of meticulous investigation revealed the methodology of the group.
“This investigation is a stunning example of how diligence and meticulous financial investigations can disrupt organised crime groups, who have traditionally enjoyed a reputation of being untouchable by law enforcement agencies.”
Tim Clarke, Assistant Director, Fraud Investigation Service, HMRC, said: “Adams failed to declare his income over a number of years, hid his profits and cheated the public purse. He took money that should have been used to fund vital public services and used it to line his own pocket. He is now paying the price behind bars.
“This is a great demonstration of what HMRC can bring to investigations into some of the UK’s most notorious and harmful crime groups. We will continue to work with our partners to ensure fraudsters like Adams pay for their crimes. If you know of anyone committing tax fraud you can report them by calling our Fraud Hotline on 0800 788 887.”
The judge, HHJ Ainley, commended the officer in the case, Detective Constable Victoria Chafen and her team for the investigation and the presentation of the case.