A COMPANY director doctored invoices to the tune of £45,000 from legitimate businesses to claim fraudulent VAT repayments to pump back into his own troubled companies.
Glen John Maxwell, 41, of Augusta Street, Grimsby, ran several businesses including print finishing and cardboard recycling in North East Lincolnshire.
His fraud was stopped after HM Revenue and Customs investigators became suspicious and found false invoices in his records.
Further fake invoices found by investigators, which had yet to be submitted, showed future claims amounting to £24,400.
At Grimsby Crown Court he admitted VAT fraud between January 2011 and November last year.
Judge Kate Buckingham said she wanted to see evidence that Maxwell could be an honest businessman and gave him a nine-month prison sentence, deferred for six months.
She also set a condition that he repays the money.
He will appear again on February 21.
Maxwell was registered for VAT as a sole proprietor trading as Max Print from July 2010. He also traded as RAC Enterprises Ltd and ATP Recycling Ltd.
The businesses were based at Europarc Innovation Centre in Grimsby, but later he traded from his home address.
ATP Recycling Ltd was a business that he took over the directorship of for one month, fraudulently claiming £1,043 VAT and then de-registering the company.
Maxwell also used the documents from Max Print to show that he had purchased labels for £82,000 from RAC Enterprises Ltd and he then claimed a VAT repayment of £16,500. The transaction never took place. He supplied printing work to legitimate companies and then removed their cardboard waste. He then doctored the invoices on his computer, changing the amounts or dates and then claimed VAT back that was not due.
After the hearing, Gary Lampon, assistant director of criminal investigation, HMRC, said: "Maxwell attempted to fool HMRC officers by faking invoices and submitting false repayment claims. However, the officers were not satisfied with the documents that he provided and started an investigation.
"It is not acceptable to defraud the taxpayer and HMRC will thoroughly investigate suspected tax fraud and act against those who cheat the system."
For Maxwell, Richard Hackfath said his client had submitted an early guilty plea and had co-operated fully with HMRC.
He said: "The offences were committed because his businesses were in trouble due to the recession and he had been let down on a recycling contract.
"The money was spent on ensuring the survival of his businesses and not luxuries," he added.
The firms he ran have now "turned the corner" thanks to third party management, his barrister told the court.
He offered to pay back every penny.
Mr Hackfath said his client was a good character and had undertaken several supreme efforts to raise money for charity.
Copies of the Grimsby Telegraph featuring Maxwell taking part in a London and Paris triathlon in aid of Aplastic Anaemia Trust, were handed to the judge.
One triathlon involved a 1km swim at Hyde Park, London, followed by a 10km run and finally a 90km cycle ride through Paris.
The judge said: "I note you have given freely of your time to charitable causes."
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