Points to cover Leicester City Council Revenues & Benefits Investigation Team What is Fraud? Fraud Awareness Key issues for the Team Audit and Risk Committee Referrals & Investigation Process Sanctions & Prosecution Policy Emerging areas for the Team Case Studies Stuart Limb – Investigations Manager Sarah Khawaja – Principal Lawyer November 2013 1 2 R & B Investigation Team What is Fraud ? The Fraud Act 2006 defines fraud as… . Headed by Investigations Manager and team of 12 “to make gain or cause loss by false representation, failing to disclose Investigate cases of suspected fraud information or abuse of position”. Housing Benefit / Council Tax Benefit Council Tax Discount Single Person Discount Fraud is a criminal offence, therefore Tenancy Fraud requires a Criminal Investigation Insurance Fraud 3 4 Key Legislation Key issues for Investigations Team Criminal Procedures Investigation Act 1996 • Criminal Investigations into suspected Fraud • Regulation of Investigatory Powers Act 2000 • Qualifications Human Rights Act 1998 • • Data Protection Act 1998 • Accredited Counter Fraud Specialist Police And Criminal Evidence Act 1984 • Accredited Counter Fraud Manager Fraud Act 2006 • Proceeds of Crime Act 2002 • Public Sector Housing Fraud Act 2013 • 5 6 1
Referrals & Allegations The desire to tackle Fraud “Leicester City Council is totally committed to both maintaining a zero tolerance towards • Referrals are both reactive and proactive fraud and corruption and to the prevention, • Police, Public, staff or other Local Authorities deterrence, detection and the investigation of all forms of fraud and corruption affecting its • Proactive from data matching exercises activities” • National Fraud Initiative every two years •Joint Working with the Department of Work and Pensions Source: LCC Anti-fraud and Corruption Policy 7 8 The role and the aim of Investigation Process the Investigator The investigator has a code of conduct to follow. Consequences of Referral findings Caution established Sanction The Investigator will ensure that all anti-fraud work Evidence Recommendation Ad Pen Gathering to Manager correctly identifies the guilty parties whilst protecting the innocent and minimise loss to the public purse. Sanction Decision Interview Under in line with Prosecution Caution Prosecution Policy 9 10 Prosecution Policy Sanctions & Prosecutions Caution: Some of the guidance used: • Voluntary disclosure • This is a “formal warning”. • Value of o/p and the duration • Previous fraud • Physical & mental condition • Given by Investigation Manager. • Social factors • Recorded with Department of Work and Pensions. • Was the offence premeditated • Legal Services • Failure in inv/admin/delays • There must be an admission during IUC. Recommendation • May be appropriate if the value of the o/p below £2000 but we can caution if there is no overpayment. • If the caution is refused ‘PROSECUTI ON’ 11 12 2
Sanctions & Prosecutions Sanctions & Prosecutions Administrative Penalty: Prosecution: • This is similar to a ‘fine’ • If a Caution is offered but refused by the claimant. • Recorded with the Department of Work and Pension • If an Ad Pen is offered but refused by the claimant. • Recovery of overpayment + 30 % or 50% of overpayment • The overpayment must be 4 weeks or more. • May be appropriate if the value of the overpayment is below £2000 and the period exceeds 4 weeks • The value of the overpayment normally more than £2000. • If the Administrative Penalty is refused • Reminder - A prosecution is not to seek recovery of benefit ‘PROSECUTI ON’ 13 14 Performance Stats 2012/2013 Fraud is Fraud Team of qualified and experienced officers who investigate 221 Sanctions the crime of Fraud. • Uncovered £925,785.00 of Fraud • Top ten performance since 2006 • 15 16 New areas for the team Single Fraud Investigation Service • Insurance Team 1 st case referred resulted in prosecution • Department of Work and Pension led More cases referred and ongoing • 2014/ 2015 phased implementation • LA Staff may transfer to DWP • Tenancy Fraud • May leave some council’s open to fraud Produced draft prosecution policy • LCC to review Revenues & Benefits and Fraud as opposed to Tenancy irregularities Corporate Fraud before April 2014. Improving declarations and Tenancy Agreements 17 18 3
Case Study 1 Case Study 2 Claimant came in to Claimant IUC’d and Allegation received from Overpayment of £15,000. Revenues & Benefits stating admitted he failed to Inland Revenue, claimant Prosecuted and found guilty his daughter had gone disclose return of daughter. has bank account that Fined £14,000 abroad. generated annual interest of O/p £1400 He failed to declare that she Costs of £2,000 £780. Claimant offered and had returned to the UK few IUC- admits having accepted a caution. months later. £120,000 in Bank account Enquires with the employer and stated money was for and Credit search charity undertaken. 19 20 Case Study 3 Case Study 4 Claimant stated he had Enquires with the Claimant and Partner Hand writing analysis started work in January employment agency claimed neither was undertaken. Confirmed 2008. confirmed were the wages working. partner completed benefit of the claimant. forms and signed for HB However provided Bank Partner was a policeman. cheques. statements from November When shown the evidence Joint Working/Investigation 2007, which showed credits the claimant stated he was Total overpayment was over carried out with DWP from an employment only working temporary £77,000 Partner denied any agency. hence he failed to tell us Partner found guilty at involvement in benefit earlier. Stated credits were wages Crown Court and sent to claim. of a friend who did not have O/p £500, offered and prison for 8 months. a bank account. accepted Ad Pen. Dismissed from the Police. 21 22 Any Questions? 23 4
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