Compensation for trusts targeted by fraudsters

30 April 2019 Seamus Ward

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The criminals used forged letter, emails and faxes to masquerade as legitimate suppliers, allowing them to divert payments to themselves, according to the NHS Counter Fraud Authority. It said 14 fraudsters involved in the criminal group have been convicted, with total prison sentences of more than 50 years handed down.

A police investigation, known as Operation Tarlac, was prompted when a payment of £1.28m from Lincolnshire Partnership NHS Foundation Trust to a building firm for a new mental health unit went missing.

Since 2011, Lincolnshire Police have worked with the NHS Counter Fraud Authority and its predecessors to investigate the fraud and money laundering offences. Their inquiries revealed that other public bodies, including NHS organisations, councils and housing associations, as well as the Guernsey government, had been targeted by the gang.

More than 20 offences were linked, with losses totalling £12.6m. In sentencing, Judge Philip Head, described it as a ‘sophisticated and widespread fraud in its conception and execution’.

The counter fraud authority said the Lincolnshire trust has received a payment of £1.2m from a proceeds of crime payment order, while North Essex Partnership NHS Foundation Trust received more than £298,000 and Tees, Esk and Wear Valley NHS Foundation Trust more than £216,000.

Sue FirthNHS Counter Fraud Authority interim chief executive Sue Frith (pictured) said: ‘I commend the excellent work by Lincolnshire Police. Close collaboration between the NHSCFA, police forces and other authorities is vital to root out NHS fraud, especially by professional criminals.

‘These recoveries for the NHS, and the original investigation, are good examples of how NHS counter fraud work helps to curb crimes against the taxpayer even beyond the NHS. Our Forensic Computing Unit, intelligence, fraud investigation and financial investigation specialists all played important roles in Operation Tarlac.’

Detective sergeant Mike Billam of Lincolnshire Police added: ‘Recovering the stolen funds has always been a key objective in this investigation and so I am particularly pleased that Lincolnshire Partnership has now received the full value of its loss, which I know will be used to benefit our communities.’