Tumbledown house concealed nerve centre of lucrative fraud

Detectives had tracked down two of those involved to the house next door, and when they decided to search the neighbouring tumbledown detached property, they initially found nothing.

Inside, the house had been completely stripped of furniture, fixtures and fittings and the only evidence of any utility was an electrical cable which snaked up towards the loft space.

After spotting the electrical lead, officers found a hatch in the ceiling and climbed a ladder into the attic. There they were astonished to discover an office containing computers, filing cabinets and thousands of sheets of paperwork.

Detective Sergeant Aaron Day, from South Yorkshire Police's economic crime unit's fraud investigation team, said all the evidence the team needed could have been missed, had the cable gone unnoticed.

"The loft space had essentially been converted into a fully-functioning office," he added. "It had lighting, an office desk, computer terminals and equipment, besides the shelves and three filing cabinets.

"The shelves and filing cabinets contained numerous folders of false names with details such as employment history, salary, false National Insurance number and false wage slips.

"There were also details about each credit card owned by this so-called person and the minimum amount that needed to be paid each month. There was enough information in these files to create a full false identity on the electoral roll and false driving licences.

"These identities were then used to exploit benefit systems and credit facilities. It's fair to say this was a full-time occupation."

The net began closing in on David Smith, Susan Clarke and Dennis Morris in 2007 after officials in Whitby became suspicious about a housing benefit claim on a property connected with Morris.

They uncovered a link to South Yorkshire in September 2008, when a second housing benefit claim linked to him was unearthed and the fradulent empire began to unravel.

In December 2008, officers carried out raids on properties in the High Green area of Sheffield including the home of Smith and Clarke in Mortomley Lane and the neighbouring house.

The utility bills, wage slips and driving licences with bogus names officers found in the attic had been produced to back up false identities used to fraudulently obtain 1,194,058.

The trio involved pleaded guilty to offences dating back to 1995, but investigators were only able to go back to 2000 and said it was likely the sum involved could be more than 2m.

Sheffield Crown Court heard yesterday all three defendants built up a portfolio of properties. They also rented properties in various names, claimed benefits, then opened bank accounts and obtained credit using false addresses.

After obtaining bogus entries on the electoral roll they were able to perpetuate other frauds such as obtaining bank loans and credit/.

Smith, who owned several properties, claimed income support of 23,750 from 1999 to 2007 saying he was unfit to work and had insufficient means.

Smith and Morris also set up several trusts to handle the proceeds of their crime. A total of 469,000 went through their Libration Trust on the Isle of Man from November 1995 to November 2001. Morris opened five bank accounts in the Isle of Man and 269,000 went through.

David Jones, for Smith, said he had pleaded guilty at he first opportunity and it was a "repetitive not a complex fraud".

Paul O'Shea, for Morris, said he was a successful builder but his business had fallen apart.

Kerry Broome, for Clarke, said she was not an organiser and spent the money on food, clothes and housekeeping.

Sentencing them Judge Trevor Barber said their crimes were "professionally planned frauds".