A Bulgarian gang carried out the largest benefits fraud in UK history. They cost British taxpayers £53 million. But they will only have to pay back about £2 million.
The gang members are Galina Nikolova, Tsvetka Todorova, Gyunesh Ali, Patritsia Paneva, and Stoyan Stoyanov. In May 2024, they were sentenced to a total of 25 years in prison. The trial was at Wood Green Crown Court in London.
Now, four of them have been freed from prison. Only Gyunesh Ali remains jailed. The others are on immigration bail. They are waiting to be deported back to Bulgaria.
The gang stole from the UK welfare system for five years. They used 6,000 fake identities to claim Universal Credit. They even used the names of children living in Bulgaria.
They set up three “benefit factories” in London. These offices created fake documents. They made bogus tenancy agreements, fake payslips, and forged letters. The letters pretended to be from landlords, employers, and doctors. They used these papers to trick the Department for Work and Pensions.
The fraud was discovered after a tip-off. A police officer in Bulgaria noticed a pattern. Criminals in the city of Sliven were suddenly getting large amounts of cash. Bulgarian police alerted UK officials.
So far, officials have recovered about £1 million. They tried to get more. A court has now ordered the gang to pay a total of just over £2 million.
Prosecutor Gareth Munday explained the situation. He said the Crown Prosecution Service tried hard to get the money back.
He stated, “The Crown has taken every effort to regain as much money as we could.”
The court looked at each gang member’s profits. Galina Nikolova, the leader, made about £2.8 million. Prosecutors wanted £4 million from her. But they could only prove she has assets worth £942,183. The rest of the money is gone. She spent it or moved it overseas. She was ordered to pay what she has left.
Her partner, Stoyan Stoyanov, worked as her assistant. He made at least £162,950. He was ordered to pay back only £7,654.
Patritsia Paneva made £225,919. Police found over £80,000 in her bank account. They also found £20,000 cash at her home. She was ordered to pay £99,235.
The prosecutor said they are seeking what they can “realistically trace.” Judge David Aaronberg agreed the confiscation amounts were appropriate.
After the hearing, Galina Nikolova was quoted saying, “I can’t believe it. I get to go home. I am very excited.”
A spokesperson for the DWP said they take fraud seriously. They said action is ongoing to try to recover more money.
The gang operated from 2016 to 2021. They offered fake documents as a service to others. Police found a video on Gyunesh Ali’s phone. It showed him throwing a large pile of £20 notes into the air.
When police arrested Stoyan Stoyanov, they seized more than £750,000 in cash. Smaller amounts were taken from the other members. They also seized a luxury Audi car and designer watches, jackets, and glasses.
After his first arrest, Gyunesh Ali fled the UK. Reports say he started a property investment company in Bulgaria while on the run.
Galina Nikolova became eligible for deportation in October 2024. Foreign criminals can be removed from the UK 18 months before their earliest release date. She only served half of her sentence.