Shrewsbury security boss guilty of £59,000 VAT fraud

Karl Francis, 59, of Prestbury Green, Shrewsbury, pleaded guilty to six charges of falsely charging VAT, while running KSS Security.

The offences took place between May 2011 and October 2014.

In total Shrewsbury Crown Court was told that Francis had charged Shropshire Council, Shrewsbury School and The Forestry Commission around £59,700 of VAT, which was not paid to HM Revenue and Customs.

Francis’ company provided security staff who were responsible for locking up buildings and patrolling.

Philip Beardwell, prosecuting, said the matters had come to light after one of Francis’ employees was found to be working without the right authority.

He said: “When working at Shrewsbury school the man was approached and they found he was not authorised to have the appropriate licence to be working on site that day and he received a formal police caution for that,”

Francis’ company was responsible for a number of sites including Raven Meadows Car Park, Shrewsbury’s park & ride facilities, Shrewsbury Bus Station, and event and evening security at Shrewsbury School.

The court heard that he had been registered for VAT but had de-registered in April 2011.

Mr Beardwell said that Francis had continued to invoice the organisations for work, including VAT, but had not paid the appropriate amount to HM Revenue and Customs.

The court was told that in a police interview Francis had said that another man had been responsible for the accounts.

However, Mr Beardwell said: “Attempts were made to trace him but he was never found.”

Anthony Scott, mitigating, told Judge Peter Barrie that Francis suffers from respiratory problems and mental health issues.

Sentencing Judge Barrie said: “I have to deal with you for six counts in relation to three clients from whom your business quite deliberately charged VAT when the business was not registered for VAT so the money collected, which should have been seen as tax, was not accounted for by the revenue and was kept by your business.

“Having previously been registered for VAT you must obviously have understood how wrong it was to conduct the business in this way.

“The total amount is not far short of £60,000 which is a significant loss to the revenue, accrued over a significant period of time.”

However, Judge Barrie said that despite the seriousness of the crime he was not going to send Francis to jail because of his health.

He said: “Because of ill health it would be disproportionate to impose a sentence of immediate custody.”

Francis was sentenced to 21 months in prison, suspended for two years.