Fraud

[starone]

Can anyone tell me what would happen in this case:-
My friend inherited half of her mother's house which amounted to around £60,000. She lives in a council house and is on benefits. She thought if she put the money into bank accounts in her two children's names she could go on drawing benefits. Which she did. Now the squeeze has come and they have come around to her name. They have estimated that she has had around £49,000 in benefits, which she should not have had. As it happens she still has around £50,000 left so can pay it back, although she will be left with hardly anything. She has to go to the magistrate's court regarding this. What we want to know is, if she pays the whole amount back right away will she then be free or will she still have to go to the crown court with the possibility of a prison sentence? She has M.S. so I think that might be in her favour but she does not use it as an excuse. Anyone advise? Barmaid? or New Judge?

[arwyn]

I know of a person with ill health and a letter from her G.P stopped her going to prison for benefit fraud. Your friend defo wont go.

[starone]

That is one of the things she is afraid of arwyn. I wondered if they would let her off as she also has two children and she is very willing to pay it all back. Wish she had asked me in the first place, I would never have let her do it. It is a case of an innocent taking bad advice from so-called experts. Experts in how to work the system, I reckon. Or thinking they know how.

[sunny-dave]

The daft thing is she could have kept around £23,000 if she had been honest - the benefits would have resumed when she had run her windfall down to that level.

[starone]

Yes, I agree, sunny-dave, she has been a complete idiot. But is there anything that can be done to put right the damage?

[sunny-dave]

Sorry, don't know starby - beyond my AB pay grade - wait for Barmaid or one of the other legal eagles.

[needawin]

If she is a politician she can claim as much as she likes with no fear of a prison sentence.

[arwyn]

srarbuck I would have put it under the floor boards ha ha.. The person I know did a different thing but it was still benefit fraud. They will never put her in prison.. Yes your friend will get benefits again.

[EDDIE51]

If it is payed back the case should be dropped at least that is what I think.
But do not rely on us here get a solicitor this time.
What your friend should have done was to get the cash put into a trust fund in her name, that way she would have had the cash without losing any benefits. But too late now. Once she has repaid the money she can claim benefit again as she will have no money left, a daft situation , a good solicitor may be able to negotiate a compromise with the DWP. It is in no ones intrest to prosecute if an other solution can be found.

[ummmm]

It's 16,000, Dave...and she would have had her benefits cut because of it. You can have 6,000 in savings that doesn't effect your benefits.

23,000 is what you're allowed before you're eligible to pay for care/nursing homes. 46,000 if you're a couple.

[starone]

Thanks Eddie. She has seen a solicitor, who has frightened her with his talk of Crown Courts and prison sentences, which is why I am asking the question for her. I would have thought myself that if she paid the money back and was sufficiently contrite (which she is) they would not have gone to the trouble and expense of going through all the courts etc. Although, I was once taken to court (without my knowledge, until I got the bill) by the local council, for a debt of two pence. Plus the Court costs, which came to £20.02, believe it or not, so anything can happen, I think. I kicked up a big fuss and had a letter of apology plus of course I did not pay anything, not even the two pence. But that's another story. Thanks again.

[EDDIE51]

Then get her to see the CAB for legal advice , they are very helpful and knowledgeable. I still think there must be a way out of this without going to court .

[factor-fiction]

I can see that the DWP might take the view that you can't always let people off when they are caught out in this way as claimants would have nothing to lose by making fraudulent claims. I think the solicitor is right to advise her that a prison sentence is a possibility, although I agree with the consensus here that it is unlikely as she is able to pay it back (whereas many fritter it away or syphon it off and then plead poverty). There may be costs to pay, however, and a fine

[starone]

Thanks factor, although if she pays it back she will not have anything left to pay costs and a fine. Perhaps they will give her time to pay this. I suppose then, it is in the lap of the gods and she will have to wait and see what occurs.

[bednobs]

i think that she maybe ought to prepare herself for a prison sentance - £50k is a lot of money to fraudulently claim

[EDDIE51]

Bednobs The £50,000 will be an estimate if it is all worked out in full it will probably be a lot less, they always overestimate to be on the safe side. It can be reduced if full checks find it is less, but they can not increase itif the estimate is too low. I know a family who were told they had overclaimed by £7000 but when the CAB did a full check for them it was reduced to under £1000 . I do think now though that they prosecute as a warning to others but if it is repayed there will not be a prison sentence. There was a case on TV last week a woman from Zimbabwe had claimed £80,000 but it was only a suspended sentence and she was paying back just £5 a week.

[starone]

Thanks Eddie, that sounds a lot more hopeful and I think everything will be paid back as soon as possible, with the added thought that she will think two or three times before she ever does anything like this again. What I find peculiar is this is a woman who cannot tell lies. Strange! (I tell them all the time, but then I am old so am allowed a bit of fantasy-land).

[Chinajan]

Still go to court I think, but they will likely take account of the willingness to pay back. Probably suspended sentence.

[JimmyCooper]

No way will it be prison.

She could have kept all of the money if she had put it in govt bonds as the government "forget" you have the money