VAT villains convicted

Gang members awaiting sentence after PC components scam

The leaders of a VAT-dodging gang were awaiting sentence this week after being convicted of a multimillion-pound components scam.

Eight people were arrested after a Customs and Excise investigation, codenamed Operation Delta, discovered a VAT shortfall of more than £39m between 1998 and 1999. Four were released without charge.

Seven companies were investigated: Computerwise Products, Cambridge Computer Supplies, Computerwise Distribution, Microtech European, AB Electronics, Eastern Electronics and ACL UK.

Nicholas Skidmore, Bassam Omar, David Withers and Paul Burke were all found guilty of cheating the public revenue, after importing chips and memory modules from the US and Hong Kong and undervaluing them for tax purposes. They tried to conceal their dealings by using Compaq's VAT number.

Frank Ferguson, assistant chief investigation officer at Customs and Excise, said: "We are delighted that this case has come to a successful conclusion.

"It involved a culture of crime leading to a determined attack on the VAT system. We are aware that this sort of fraud takes place and we are making every effort to bring those involved to justice."