A problem shared
Roy Faichney, former Vantis Tax managing director, was jailed for four years for his part in a £70 million tax fraud in October last year.
Faichney was jailed nine months after his colleague David Perrin received an 18-month sentence for his part in the fraud.
The pair used a network of finance professionals to advise more than 600 wealthy clients to buy shares, worth a few pence each, in four companies they had set up.
Faichney listed the companies on the Channel Islands stock exchange and paid people money from an offshore account to buy and sell the shares simply to inflate their price.
The shareholders then donated 329 million shares to a number of ‘unsuspecting’ registered charities and tried to claim £70 million tax relief on a total of £213 million of income and company profits.
This was based on the shares being worth up to £1 each, when in fact they were still worth the pennies they were originally bought for.
HMRC said Faichney acted with Perrin to extract cash through a Jersey bank account to take his share in the £4.5 million profit made from the scheme.