Mother faces jail over £112k celebrity obsession

A mother of four who claimed her children and husband were severely disabled in order to claim £112,000 in benefits to fund her celebrity-obsessed lifestyle is facing jail.

Jayne McKnight, 45, falsely claimed that her four children had epilepsy and severe learning difficulties and that her husband David, 47, suffered from gout and could not work.In fact, only one of her children – who are aged ten to 25 – suffers from epilepsy and McKnight’s husband is perfectly fit and healthy and works as a van driver.It was in 2003 that she first claimed for just one of her children, who genuinely suffered from epilepsy, picking up child tax credits to the tune of £3,900 a year.But from 2006 she claimed that all of her children were severely disabled and that her husband was reliant on her care, which boosted the payments to over £15,000 a year.She also lied about supporting her family by working as a temp which enabled her to claim £18,000 for non-existent childcare.She spent her ill gotten gains on concert tickets and backstage passes, touring up and down the country to meet her celebrity idols including Susan Boyle, Ronan Keating and the late Stephen Gately from Boyzone, as well as boy bands Westlife, JLS and The Wanted.She travelled around the country to dozens of X Factor and Britain’s Got Talent auditions to meet contestants such as Alexandra Burke, posing for photos with them and posting them online in an album she called ‘my famous mates’.McKnight splashed out on flat-screen TVs, Xbox gaming consoles, hi-fi equipment and laptops for herself and the children, but investigators believe most of the  cash went on tickets because McKnight said she was ‘happiest when at a gig’.The scam came to light after investigators were given a tip-off, but even after she was caught, McKnight continued to cheat the system by making false claims for housing and council tax benefits two days after she was arrested.Investigators also found out that in 2000 McKnight was convicted for family credit and income support fraud and was handed a seven-year suspended sentence for a total of 301 offences, four of them for fraud.Mike O’Grady, assistant director of criminal investigation for HMRC, said: “Between 2003 and 2010 Jayne McKnight consistently lied about her circumstances, knowing full well that this would increase the amount of money she was awarded.“She probably thought she would never be found out, but she was wrong.“We are investing £900million in our drive against fraud, be that tax avoidance, evasion or criminal attack, and we will investigate suspicious claims and pursue fraudsters. We have a duty, the ability and the determination to do so.”
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: celebrity,faces,Mother,obsession

My Big Fat Gypsy Fraud: Crooks jailed for £800k scam

A family of Romanian gypsies who defrauded taxpayers out of more than £800,000 through a series of benefit scams have been jailed.

The Romany gypsy gang – who are also believed to have been involved in a child trafficking ring - committed the "sophisticated and professional" scam in a ‘flagrant and persistent’ attack’ on the benefits system.Using forged home office documents and job references to illegally obtain national insurance numbers, the fraudsters managed to claim a plethora of handouts at the taxpayers’ expense.But they were traced to the town of Tandarei, in eastern Romania, a notorious base for crime gangs.Some members were based in Britain while others flew in from Romania to collect tax credits, income support, child benefits and housing benefit.Telus Dumitru, 36, of Nottingham, admitted conspiracy to defraud. His wife Ramona, 33, and the other seven members of the gang admitted various counts of obtaining a money order by deception, fraud and theft.The court heard how Dumitru, who masterminded the fraud, returned to the UK soon after being deported in 2001. He first arrived in August 1999.Until they were caught in 2009,  Dumitru supplied his gang fake Home Office documents, passports, Romanian birth certificates and work references so they could claim benefits for six years.One reference came from British citizen Abdellatif Lemsatef, who admitted supplying phoney papers for use in the scam.Prosecutor Christopher Hehir told the court how gang member Claudia Radu would fly to Britain from Romania every few months specifically to claim benefits but was eventually stopped at Stansted airport with €13,000 and £1,800 hidden in her bag.Judge Gregory Stone said: "This was a major undermining of the UK benefits system."It was a professional fraud that occurred over a significant time frame and resulted in a very serious loss to the UK authorities."You have flown in and out of Romania to make your claims and commit your fraud. This shows a flagrant and persistent approach to offending which is an aggravating feature in your case.”The gang were jailed last week for a total of ten years at Southwark Crown Court.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: Crooks,fraud,Gypsy,jailed

The A4e Blog: The underbanked and the unbanked

My work on developing new approaches to financial services and products for people on low incomes, often highly indebted, started in 2005. One of the high street banks put up a sign for a week in their local bank offering every customer who came in £5 - simply for coming into the bank. After a week, no-one had taken up the offer – from all of the footfall outside, not one person had sufficient confidence in the offer that there would not be a ‘catch’. 

Accenture have recently released a report on the continuing lack of confidence that consumers have in financial institutions. Customers are saying that their satisfaction with services and willingness to recommend their bank is reducing, whilst complaints are on the increase. A lot of media coverage links this to the banking crisis but there is a deeper malaise amongst customers.The consumer groups I am most interested in are the underbanked and the unbanked. Surveys like this talk to people with bank accounts – what about the millions people who do not have access to relevant products and services? If existing customers feel like this, imagine what it feels like if you do not have an account, or at best, a basic bank account.If you are one of those people who have fallen out of the bottom of the banks’ services or have not taken up the option of the limited functionality of a basic bank account, what level of confidence do you have in the financial services sector? The growth of high street lenders and cheque cashing businesses, pawn brokers and internet based high cost short term credit suppliers, points to a more fundamental problem.It’s not just that the trust and confidence of consumers gets eroded, but that the relevance of the products and services to consumer need continues to be mismatched.  Many people cannot access the cost savings offered by direct debits due to the inconsistent frequency of their income. Short term, high cost lending products are being developed to address consumer demand.  But all of the services revolve around supplying the credit requirements – helping fuel a vicious cycle of dependency on debt.  Mainstream financial providers do not compete with door-to-door lenders or pawn brokers so there is nowhere else for these consumers to go. More transparent and lower cost short term credit is needed. With over £1 billion of government spend in this area – on crisis loans and ‘social fund’ – there is much reform required in public supply as well as in the private sector supply of finance. More importantly, alongside these current account products, bill payments and savings products, we need credit and enhanced financial capability support to help consumers become more informed. Ability to exercise a choice will only work where there is a more mature market in the availability of appropriate products and services.  It is easy to criticize the supply market in financial services – we need some bold moves in creating new scalable products and services. Stepping into this difficult gap in supply is risky and hard. It requires integrity and an ability to swiftly iterate services and products that support consumers in financial capability as well as appropriately responding to their needs. In reality I think there needs to be a collaboration that can be a catalyst for market change at scale. Banks, CDFIs, credit unions, door to door lenders, pawn brokers – there is no ‘perfect’ solution, so new ideas and solutions are required.Creating a product suite across current accounts, bill payments, credit services, savings, pensions and other financial products needs radical approaches and pricing.  The consumer must be involved in the design of services – not a passive end user with no choice. Too often there is a presumption that the financial community ‘know’ what is needed. I do not believe this is the case. A while back I surveyed two estates on the most important financial product they wanted – I expected short term loans, maybe pensions? The overwhelming first choice was pet insurance. A customer having to pay £30 to cash a £100 cheque every month may well not baulk at the idea of a £5 monthly fee for a service that includes current account, bill payments and access to expertise to structure the appropriate products – quite the opposite from the basic bank account model. Especially if they can use that to reduce the utility payments they have – by using a direct debit – putting £200 back into their annual income. Net they are £500 up on the year. Understanding and changing – for the better – consumer behavior in financial services for low income people is hard. However, there is too little attention on holistic services and products and often too much of an emotive debate on ‘who’ can provide the best solution and regulation. In South Africa, where technology is much better utilized to create affordable and transparent products for people on low incomes, regulation to tackle unscrupulous lenders had the perverse impact of making the best suppliers look less transparent. This is a nettle we must grasp as a society. Low income consumers should not pay the most for their financial services and products. Our financial providers must offer more transparent and affordable products and services. New suppliers will be needed, more competition and a plural market. Too much talk, too much research; the problem is here and growing but with a little bit of thinking outside the box we can provide an attractive solution now - meeting many of the needs and really change banking in the UK.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: unbanked,underbanked

FSA issues pension scheme warning

The FSA is set to issue a warning to cash-strapped consumers to be wary of schemes that offer the chance to release up to 50 per cent of their pension funds before they are 55.

Under normal rules this is not allowed and would trigger an "unauthorised payment charge" from HMRC of 55 per cent of the amount released. However, some companies claim to have found a way around this legislation.Usually only those who are terminally ill or have to retire early because of health problems can access their pension fund early. The FSA is urging anyone thinking of using such schemes to tread carefully.Kevin Still, director at Atlantic Financial Management, said: “Early release of funds from your pension is already considered a high risk advice area by the FSA. With the retirement age being raised from 50 to 55 from April 2010, it is inevitable that new ‘schemes’ will emerge to test current legislation. These schemes will invariably be targeted at homeowners in financial difficulty or suffering ill-health and are unable to continue working.“Any such decision should not be taken lightly and you should consult a specialist FSA authorised pension advisor before you look to unlock your pension. Taking any pension benefits early is likely to reduce your income at retirement and pension release is only suitable for a very limited number of people and should not be seen as an easy option for raising cash.If you have debt problems then calling a DEMSA member like Atlantic Financial Management may allow you to assess the alternative debt solutions available to you before considering looking at higher risk strategies that may have a long-term impact on your personal finances and funding for your retirement. The updated Lending Code that came into effect in March 2011 makes considerable provision for financial hardship and people with health problems which affect their ability to pay their debts.”
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: issues,pension,scheme,Warning

FSA confirms new consumer complaint handling rules

Wednesday 1st June 2011

The FSA has introduced new complaints handling rules as part of a package of measures to drive up standards within the industry.

The new rules include the abolition of the ‘two-stage’ complaints handling rule to make sure firms resolve complaints fairly and do not dismiss them the first time, requiring persistence from the customer to pursue the complaint;The consultation statement also confirms an increase to the limit on awards made by the Financial Ombudsman Service from £100,000 to £150,000.Sheila Nicoll, the FSA’s director of conduct policy, said: ''We would rather customers were not put in a position where they had to complain, but when they do we want them to be treated fairly by their firm, with their complaint resolved promptly and being provided with redress when needed.The new ruling also requires firms to identify a senior individual responsible for complaints handling and additional guidance to help firms understand the processes they might need in place to meet the new requirements.Ms Nicholl added: ''Good complaints handling contributes to customer loyalty and should provide the opportunity for firms to put right problems in product design or sales before issues become widespread. But we have found major failures with the way firms handle customer complaints and have since taken enforcement action against two firms as a result of poor complaints practices.''The news comes after the FSA announced a fine for Bank of Scotland of £3.5 million for failures related to complaints handling of its retail investment products - many from older customers with little or no experience of investment products.This is the second firm fined following the FSA’s review of complaint handling practises by five major banking groups. Royal Bank of Scotland and Natwest were fined £2.8 million in April 2010 for multiple failings in the way they handled customers’ complaints.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: complaint,confirms,Consumer,handling,rules

Eddie Stobart boss died with £200k debts

The man who transformed the Eddie Stobart haulage company into a household name was £220,000 in debt when he died.

Papers released show he had filed for bankruptcy at Warwick County Court last July, but had cut his ties with it at the time of his death in March after suffering a heart attack.A spokesman for RSM Tenon, the insolvency firm dealing with his case, told The Daily Mail: “Known creditors have claims amounting to around £220,000. No material assets have yet been recovered. The investigations are ongoing.”He took built it into the best known trucking company in the UK before selling the firm to his brother William and business partner Andrew Tinkler in 2004.In the 1970s Eddie Stobart took the company from a local firm delivering fertiliser into a road transport and warehousing company.He started with eight lorries and 12 employees in 1976, Mr Stobart changed the face of freight and built up one of Britain's biggest brands.Mr Stobart gave his lorries female names - the first named Twiggy after the model - and is credited with changing the public's image of a dirty, macho industry into an efficient, clean and friendly company.Drivers wore collars and ties, which was unusual at the time, and were also instructed to wave back and honk their horn when signalled by a passer-by.By the 1990s the distinctive trucks, with each cabin bearing a woman's name, were a common sight on motorways across the UK and Europe.Edward Stobart, son of Eddie who founded the company, ran the firm for 30 years and died aged 56. 
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: debts,Eddie,Stobart

Equity Release could alleviate £25k debt

With a record number of people facing financial difficulty, many are looking for alternative ways to free themselves from debt.

Recent figures from Key Retirement Solutions have revealed that almost one third of people over the age of sixty-five enter retirement with an average of £25,000, so solutions are being sought to alleviate this debt. Equity Release enables clients to acquire a capital lump sum or additional monthly income from their home but still live in the property. The products enable indebted individuals to continue living in their home, but debt free. Norton Broker Services has made the service available to clients through their ‘One Stop Shop’, to help not only homeowners who are over fifty-five but also other demographics who are struggling with debt problems. There are currently two main types of Equity Release products available on the market, ‘Lifetime Mortgage Plans’ and ‘Home Reversion Plans’, both of these products are regulated by the Financial Services Authority. Norton Broker Services has launched an Affinity Partnership with a specialist Equity Release Advisory Company making ‘Lifetime Mortgage Plans’, and ‘Home Reversion Plans’ available to their clients.

Norton can introduce clients to a number of companies who offer these products, and provide appropriate solutions to client’s needs.

Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: alleviate,could,Equity,Release