0:00:04 > 0:00:05I'm Michelle Ackerley.
0:00:05 > 0:00:08My parents both grew up on council estates
0:00:08 > 0:00:12and as a family, we understand the difference social housing can make
0:00:12 > 0:00:13to people's lives.
0:00:13 > 0:00:18Millions of families across the UK are struggling to find affordable housing.
0:00:18 > 0:00:22So this is my front room and my bedroom together.
0:00:22 > 0:00:25Many are living in temporary or overcrowded conditions,
0:00:25 > 0:00:27desperate for somewhere decent to live.
0:00:27 > 0:00:30This is our room where we sleep and this is what we've got at the minute.
0:00:30 > 0:00:32We can't really call it our home.
0:00:32 > 0:00:35But some social housing tenants are abusing the system,
0:00:35 > 0:00:38holding on to properties they no longer need.
0:00:38 > 0:00:39When somebody applies for housing,
0:00:39 > 0:00:42you expect them to live in the property and when they don't,
0:00:42 > 0:00:44it does start to take the mickey.
0:00:44 > 0:00:45Or even worse,
0:00:45 > 0:00:48making a small fortune by illegally subletting them.
0:00:48 > 0:00:51He was charging beyond £1,500 a month.
0:00:51 > 0:00:54He exploited this completely to his advantage.
0:00:54 > 0:00:58So I'm with housing investigators cracking down on tenancy cheats...
0:01:00 > 0:01:03- What a waste.- If you want to commit tenancy fraud,
0:01:03 > 0:01:04don't bother coming here.
0:01:04 > 0:01:06..reclaiming properties...
0:01:06 > 0:01:08I need to speak to you, please.
0:01:08 > 0:01:11They've seen an opportunity and they think they're not going to get caught.
0:01:11 > 0:01:15..and giving them to families in genuine need.
0:01:15 > 0:01:17That's how a council house should be.
0:01:17 > 0:01:19It should be loved and looked after.
0:01:20 > 0:01:22This is Council House Crackdown.
0:01:25 > 0:01:29Tonight, an inside job, as a council executive -
0:01:29 > 0:01:31earning more than £50,000 a year -
0:01:31 > 0:01:34attempts to unlawfully purchase a council property.
0:01:34 > 0:01:37I just cannot believe - even now, when I go through this with you -
0:01:37 > 0:01:40that this guy really thought he was going to get away with it.
0:01:40 > 0:01:44We discover how this woman swindled thousands of pounds
0:01:44 > 0:01:47from the public purse by illegally subletting her council property.
0:01:47 > 0:01:50This woman was just coining in money, wasn't she?
0:01:50 > 0:01:54Well, there's a significant opportunity to make illegal profit, yes.
0:01:54 > 0:01:56- And she really cashed it in.- Yeah.
0:01:56 > 0:02:01And subtenants help a fraud team bring down an illegal landlord.
0:02:01 > 0:02:04Yeah, we're home now, so if you want, you can come around.
0:02:04 > 0:02:08- I need to speak to you, please. - Can you open the door, please, sir?
0:02:22 > 0:02:27A total of 2,700 investigations into social housing tenancy fraud
0:02:27 > 0:02:30have been carried out over the last 12 months.
0:02:33 > 0:02:36Half of these cases involve illegal sublets.
0:02:36 > 0:02:39The rest involve other attempts to cheat the system,
0:02:39 > 0:02:41such as lying about your circumstances,
0:02:41 > 0:02:44or making a false application for social housing.
0:02:46 > 0:02:52Our first case exposes an executive earning more than £50,000 a year
0:02:52 > 0:02:57but leading a double life to cheat authorities out of not just £23,000
0:02:57 > 0:03:01in benefits, but a highly sought-after social housing property.
0:03:01 > 0:03:04- This is him.- This is Charles Hahn.
0:03:04 > 0:03:07His deception began in the leafy suburb of Blackheath in south London.
0:03:19 > 0:03:21Clive, this area looks really lovely to me.
0:03:21 > 0:03:24You can see just from walking along this street.
0:03:24 > 0:03:25These properties are amazing.
0:03:25 > 0:03:27Beautiful houses.
0:03:27 > 0:03:30Lovely, vast, open, green areas.
0:03:30 > 0:03:32What about the properties over here?
0:03:32 > 0:03:36So these are predominantly council-owned.
0:03:36 > 0:03:37- They're council properties?- Yeah.
0:03:37 > 0:03:39They don't look like it at all.
0:03:39 > 0:03:43Many of them have been bought by their tenants that have lived here
0:03:43 > 0:03:46for any length of time, really, because they are so desirable.
0:03:46 > 0:03:49People want to live in a part of town like this.
0:03:49 > 0:03:54I can imagine the demand for a property like this when they become available is pretty high.
0:03:54 > 0:03:56Yes. Oh, very much so.
0:03:56 > 0:04:01I think if one of these is vacant, and it goes on to the council's list,
0:04:01 > 0:04:05anybody on the waiting list will want to bid for this.
0:04:05 > 0:04:09In June 2009, Charles Hahn was one of the hopefuls
0:04:09 > 0:04:12desperate to upgrade to one of these Blackheath properties.
0:04:12 > 0:04:14According to council records at the time,
0:04:14 > 0:04:1843-year-old Charles Hahn was an unemployed father of two.
0:04:18 > 0:04:22He was the tenant of a one-bedroom flat in Greenwich.
0:04:22 > 0:04:26His family was growing in size and they needed larger accommodation.
0:04:26 > 0:04:30Charles Hahn's circumstances seemed all too typical -
0:04:30 > 0:04:35a struggling father trying to support a young family and needing help.
0:04:35 > 0:04:38For the leader of the Royal Borough of Greenwich, councillor Denise Hyland,
0:04:38 > 0:04:40it was a familiar story.
0:04:40 > 0:04:45Talk me through how important it is for social housing properties in the
0:04:45 > 0:04:49Royal Borough of Greenwich to go to those who are in genuine need.
0:04:49 > 0:04:55I meet my constituents, you know, at least on a fortnightly basis.
0:04:55 > 0:04:59And I would say 90% of the cases I deal with,
0:04:59 > 0:05:01it's about housing need.
0:05:01 > 0:05:09We have about 16,000 people on our waiting list and it feels like it's thus ever been.
0:05:09 > 0:05:15But we work very, very hard to provide housing to those in genuine need.
0:05:16 > 0:05:19Sympathetic to Charles Hahn's plight,
0:05:19 > 0:05:22the Royal Borough of Greenwich considered his application.
0:05:23 > 0:05:27And after nearly three years on the waiting list, in May 2012,
0:05:27 > 0:05:31he was allocated a two-bedroom council property next to Blackheath's
0:05:31 > 0:05:33highly sought-after Cator Estate.
0:05:35 > 0:05:38After living in cramped conditions for years,
0:05:38 > 0:05:42this apparently struggling father had finally landed the home he'd been dreaming of,
0:05:42 > 0:05:46a more spacious family property in one of London's most
0:05:46 > 0:05:48appealing areas.
0:05:48 > 0:05:53A lot of the houses in this road are houses of £1 million-plus.
0:05:53 > 0:05:56- Really?- And all privately owned.
0:05:56 > 0:05:58Um... And it's a really nice place.
0:05:58 > 0:06:01People want to live here, you know?
0:06:01 > 0:06:05It's a part of south-east London that is desirable.
0:06:05 > 0:06:09But just one month after Charles Hahn moved into his property,
0:06:09 > 0:06:13he sent an application to the council that immediately rang alarm bells.
0:06:13 > 0:06:18Charles Hahn informed authorities that he wished to exercise his right to buy.
0:06:18 > 0:06:22This would mean he could purchase his council flat at a huge discount
0:06:22 > 0:06:24of more than £100,000.
0:06:24 > 0:06:26We're selling our assets, if you like,
0:06:26 > 0:06:31by our housing stock being diminished when people want to buy their own house,
0:06:31 > 0:06:33which they have the right to do.
0:06:33 > 0:06:38So it's very important that when a right-to-buy case comes in,
0:06:38 > 0:06:41they're all scrutinised quite carefully.
0:06:41 > 0:06:44Eagle-eyed officers spotted something unusual
0:06:44 > 0:06:46in Charles Hahn's application.
0:06:46 > 0:06:48During the right-to-buy process,
0:06:48 > 0:06:53somebody has to produce evidence that they can get a mortgage,
0:06:53 > 0:06:55their mortgage offer letter, if you like.
0:06:55 > 0:06:59And Mr Hahn's mortgage offer letter, when it arrived at the council,
0:06:59 > 0:07:03was addressed to him at an address in South Ockendon in Essex.
0:07:03 > 0:07:08The authorities immediately became suspicious.
0:07:08 > 0:07:13Officially, Charles Hahn was supposed to be a council tenant living in Blackheath.
0:07:13 > 0:07:18So, why did his mortgage provider send him a letter to an address in Essex?
0:07:20 > 0:07:22Later...
0:07:22 > 0:07:26The full shocking story behind Charles Hahn's deception is exposed.
0:07:26 > 0:07:28We were astonished. I mean, we couldn't believe it.
0:07:28 > 0:07:33And the effect of his crime on those waiting for social housing hits home.
0:07:33 > 0:07:37Yeah, I could cry for them, you know? Because I don't...
0:07:37 > 0:07:40Oh, sorry.
0:07:40 > 0:07:43- Isn't that ridiculous? - No, not in the slightest.
0:07:51 > 0:07:52According to research,
0:07:52 > 0:07:57nearly 100,000 social housing properties are being unlawfully sublet
0:07:57 > 0:08:03and in a time of unprecedented demand, and so many people desperate for somewhere to live,
0:08:03 > 0:08:06most agree this constitutes a drain on a precious
0:08:06 > 0:08:08resource that we can ill afford.
0:08:08 > 0:08:13This two-bedroom flat in Kilburn was one of those properties being
0:08:13 > 0:08:15illegally sublet.
0:08:15 > 0:08:1866-year-old fraudster Ingrid Schultz should have been living there
0:08:18 > 0:08:22but Brent Council discovered that instead, she was making thousands of
0:08:22 > 0:08:25pounds by illegally subletting the property.
0:08:27 > 0:08:30I've joined Dave Verma, head of the fraud team
0:08:30 > 0:08:31that uncovered her deception.
0:08:33 > 0:08:36So, Dave, tell me a bit more about this area of London.
0:08:36 > 0:08:38So it's very up and coming.
0:08:38 > 0:08:41This is north-west six, so it's very sought after.
0:08:41 > 0:08:44The house prices are escalating at a rate of knots round here.
0:08:44 > 0:08:50Outside London, the average monthly rent for a two-bedroom flat is less than £700.
0:08:50 > 0:08:54But in the capital, it's over 1,700,
0:08:54 > 0:08:57so there's an acute demand for affordable social housing.
0:08:57 > 0:08:58So let's talk about Ingrid Schultz.
0:08:58 > 0:09:01When did she first get a property with Brent Council?
0:09:01 > 0:09:03That was in January 2003.
0:09:03 > 0:09:06Everything seemed absolutely in order and there were no suspicions
0:09:06 > 0:09:08for many years.
0:09:08 > 0:09:11But in 2015, 12 years later,
0:09:11 > 0:09:14Brent Council received an anonymous tip-off that Ingrid Schultz
0:09:14 > 0:09:16was no longer living here.
0:09:16 > 0:09:18So off the back of that tip-off,
0:09:18 > 0:09:21you paid an unannounced visit to this property, is that right?
0:09:21 > 0:09:23Yes, the wrong person opened the door.
0:09:23 > 0:09:27So there was a lady who opened the door and she seemed to be quite evasive
0:09:27 > 0:09:31and was saying that the genuine tenant, Ingrid Schultz, was away.
0:09:31 > 0:09:33Friends, family members can, you know, can open doors.
0:09:33 > 0:09:36What was it about that that made you think, "Hold on a minute"?
0:09:36 > 0:09:38She didn't come across quite right.
0:09:38 > 0:09:41She definitely seemed to be hiding something.
0:09:41 > 0:09:46Off the back of that, some more detailed intelligence checks were done.
0:09:46 > 0:09:50Brent Council's fraud team quickly discovered through credit checks
0:09:50 > 0:09:53that Ingrid Schultz was linked to a second address,
0:09:53 > 0:09:56six miles away in the borough of Hammersmith and Fulham.
0:09:56 > 0:09:57So where was she really living?
0:09:57 > 0:09:59In Brent or Hammersmith?
0:09:59 > 0:10:00What did you do next?
0:10:00 > 0:10:03We felt confident to work in partnership with
0:10:03 > 0:10:06Hammersmith and Fulham to organise some joint visits,
0:10:06 > 0:10:10whereby we'd visit simultaneously this address in Brent and also that
0:10:10 > 0:10:11one in Hammersmith and Fulham.
0:10:11 > 0:10:13A double door knock, basically, isn't it?
0:10:13 > 0:10:15That's the bottom line, yeah.
0:10:15 > 0:10:18So you knock on the door of this property
0:10:18 > 0:10:22where Ingrid is supposed to be living, at the same time as
0:10:22 > 0:10:25the property you suspect that she is actually living at?
0:10:25 > 0:10:29We can get an immediate snapshot view as to what the reality of the
0:10:29 > 0:10:33matters are and we can speak to whoever we find at both properties to get
0:10:33 > 0:10:38their view on why they are living where they're living and what the real situation is.
0:10:38 > 0:10:41- What did you find?- Ingrid Schultz was actually residing,
0:10:41 > 0:10:42or appeared to be actually residing,
0:10:42 > 0:10:44at the Hammersmith and Fulham address.
0:10:44 > 0:10:48The fraud team's double door knock had caught her at the second address,
0:10:48 > 0:10:51but she claimed to have a legitimate reason for being there.
0:10:51 > 0:10:56When pressed, she was telling us that one reason she was often in
0:10:56 > 0:10:59Hammersmith and Fulham was to look after her cats.
0:10:59 > 0:11:03She had four cats and she was telling us that they lived there because it
0:11:03 > 0:11:05was a ground-floor property.
0:11:05 > 0:11:07What did you think when she told you that?
0:11:07 > 0:11:09Surely you thought, "The game's up, Ingrid"?
0:11:09 > 0:11:11Yeah, it just doesn't hold together,
0:11:11 > 0:11:14it's not logical and we knew she was trying to fob us off.
0:11:14 > 0:11:19Ingrid Schultz's assertion that her cats had to live in Hammersmith
0:11:19 > 0:11:22while she lived six miles away in Brent might have seemed ridiculous,
0:11:22 > 0:11:26but the investigators had to treat her claim seriously.
0:11:26 > 0:11:29In this instance, she was so adamant that she was actually residing in
0:11:29 > 0:11:33Brent that we thought we'd give her the benefit of the doubt and arrange a visit here
0:11:33 > 0:11:35to see her in this property.
0:11:35 > 0:11:36So a few days later,
0:11:36 > 0:11:39the fraud team visited Ingrid Schultz at her social housing flat in Brent,
0:11:39 > 0:11:43which she claimed was still her permanent address.
0:11:43 > 0:11:46She had created the facade that she was living here,
0:11:46 > 0:11:51but it was very strange because she was in the front room with a double bed in the front room.
0:11:51 > 0:11:55- So she was saying that she was living in the front room in a double bed?- Yeah.- Why?
0:11:55 > 0:11:59She said she didn't like the rear of the property, for some reason,
0:11:59 > 0:12:01and that she preferred to be in the front room.
0:12:01 > 0:12:04To me, honestly, it sounds quite comical, like,
0:12:04 > 0:12:06what was your reaction when she said that?
0:12:06 > 0:12:09It made us feel even more suspicious.
0:12:09 > 0:12:11What are you thinking that the actual situation is?
0:12:11 > 0:12:16It appeared very much to us that this premises had been sublet in its entirety
0:12:16 > 0:12:20and that the different rooms had been made into bedrooms
0:12:20 > 0:12:21that could be let out.
0:12:21 > 0:12:25It was a two-bedroom flat complete with a living room,
0:12:25 > 0:12:28so Ingrid Schultz had three rooms she could rent out separately,
0:12:28 > 0:12:31all while living in another borough a few miles away.
0:12:31 > 0:12:36She seemed to be very industrious in maximising the rental potential from
0:12:36 > 0:12:39the social housing we'd awarded her.
0:12:39 > 0:12:42Later, the full extent of Ingrid Schultz's deception is revealed.
0:12:42 > 0:12:47So she's had 19 different people living within that property?
0:12:47 > 0:12:50Yeah, well, our suspicion at that point was 19 people have had
0:12:50 > 0:12:53some kind of credit activity there, so it's very suspicious.
0:12:53 > 0:12:54Oh, my gosh.
0:13:01 > 0:13:04Back in Blackheath, Charles Hahn's application to purchase
0:13:04 > 0:13:10his council property with a right-to-buy discount of more than £100,000
0:13:10 > 0:13:14alerted authorities to a mysterious second address in Essex.
0:13:14 > 0:13:18Charles Hahn and then the address here in South Ockendon.
0:13:18 > 0:13:22In Greenwich, counter-fraud manager Nigel Brown's team of investigators
0:13:22 > 0:13:27have dealt with more than 2,000 cases of tenancy fraud in the last two years.
0:13:27 > 0:13:31When Charles Hahn's right-to-buy form landed on their desk,
0:13:31 > 0:13:34their suspicions were immediately aroused.
0:13:34 > 0:13:36So what is it that we can see from this document?
0:13:36 > 0:13:38As a result of putting the right-to-buy form in,
0:13:38 > 0:13:42he also provided us with details of his mortgage provider.
0:13:42 > 0:13:44Because we ask them as a matter of course,
0:13:44 > 0:13:46"How are you going to fund the property?"
0:13:46 > 0:13:48So, in this case, he provided a letter to us
0:13:48 > 0:13:50to tell us that he was going to get a mortgage,
0:13:50 > 0:13:54but inadvertently, we saw on this letter that it refers
0:13:54 > 0:13:57to the borrower, Mr Charles Hahn,
0:13:57 > 0:14:01and then it's got an address here in Aveley, in South Ockendon, Essex.
0:14:01 > 0:14:05So this raised an alarm bell as to, "Why is this on there?"
0:14:05 > 0:14:07This would appear to be his home address.
0:14:07 > 0:14:11Investigators delved deeper to find out what connected a property in
0:14:11 > 0:14:13South Ockendon to Charles Hahn,
0:14:13 > 0:14:17one of their tenants renting a council property in Blackheath.
0:14:17 > 0:14:19What they discovered was alarming.
0:14:19 > 0:14:22Charles Hahn was already a property owner
0:14:22 > 0:14:25and therefore had no need of social housing.
0:14:25 > 0:14:29We did a land registry check and, well, lo and behold,
0:14:29 > 0:14:33Mr Charles Hahn is the owner of that property in South Ockendon
0:14:33 > 0:14:37and he purchased it for £190,000 in July 2010.
0:14:37 > 0:14:40A worrying picture was beginning to emerge.
0:14:40 > 0:14:44When Mr Hahn applied to get a larger property,
0:14:44 > 0:14:46he was living in a one-bedroom flat.
0:14:46 > 0:14:50But between the time that he applied and the time that he got granted the
0:14:50 > 0:14:53tenancy here, his circumstances had changed.
0:14:53 > 0:14:57He'd bought a house, he had an alternative place to live.
0:14:57 > 0:15:00He didn't actually need that social housing any more.
0:15:00 > 0:15:04And it would have been his responsibility to tell us that he'd
0:15:04 > 0:15:06bought a property and he hadn't told us.
0:15:06 > 0:15:10The evidence confirmed investigators' suspicions.
0:15:10 > 0:15:13While applying to rent a highly sought-after council property in
0:15:13 > 0:15:17Blackheath, Charles Hahn already owned another house.
0:15:18 > 0:15:20This was fraud.
0:15:20 > 0:15:23Further investigation into Charles Hahn's background
0:15:23 > 0:15:27uncovered an extraordinary double life.
0:15:27 > 0:15:31Mr Hahn had been claiming benefit for a number of years
0:15:31 > 0:15:33as an unemployed person,
0:15:33 > 0:15:35or as a person who was sick.
0:15:35 > 0:15:39But what we actually found was that he had full-time jobs,
0:15:39 > 0:15:42he was working as a consultant,
0:15:42 > 0:15:45he was a Health and Safety Executive at another
0:15:45 > 0:15:48local authority in London,
0:15:48 > 0:15:50the London Borough of Hammersmith and Fulham...
0:15:50 > 0:15:54- Oh, my gosh.- ..and was actually quite a high earner.
0:15:54 > 0:15:56So he was working within the council?
0:15:56 > 0:15:58Yes, within another council, yes.
0:15:58 > 0:16:01What did that make you think when you heard that?
0:16:01 > 0:16:04I mean, the cheek of it at the very start is crazy,
0:16:04 > 0:16:07but to think he was working within the council,
0:16:07 > 0:16:09knowing clearly that something like this is wrong.
0:16:09 > 0:16:13Yes, well, the department that he was Health and Safety Executive for
0:16:13 > 0:16:17- was the Department of Housing within that local authority.- Oh, my gosh!
0:16:17 > 0:16:20So he must have had an idea about everything,
0:16:20 > 0:16:23about what social housing was about and the importance of it.
0:16:23 > 0:16:26When you saw this information, what did you think?
0:16:26 > 0:16:27You must have been shocked.
0:16:27 > 0:16:29Yeah, really quite shocked
0:16:29 > 0:16:35and it was sort of far-reaching, it had gone back quite a few years.
0:16:35 > 0:16:37Yeah, it was quite surprising.
0:16:39 > 0:16:41When officers investigated further,
0:16:41 > 0:16:44they discovered that through consultancy work with a number of
0:16:44 > 0:16:48organisations, including the London Borough of Hammersmith and Fulham,
0:16:48 > 0:16:50and the London Borough of Southwark,
0:16:50 > 0:16:53Charles Hahn was earning £55,000 a year.
0:16:53 > 0:16:59And all the while claiming to be unemployed and in receipt of thousands of pounds in benefits.
0:16:59 > 0:17:03It wasn't just the right to buy and the tenancy fraud that was an issue for us now,
0:17:03 > 0:17:06it was also the fact that he had been on unemployment benefit,
0:17:06 > 0:17:08or employment support allowance as it's now called,
0:17:08 > 0:17:14claiming to be an unemployed male whilst working and earning £55,000 a year in the council.
0:17:14 > 0:17:18Not only that, we found that he'd also defrauded us on housing benefit
0:17:18 > 0:17:21because at some point he'd claimed benefit from the council property
0:17:21 > 0:17:24we had given him and never declared again that he was working.
0:17:24 > 0:17:28So we always thought, and had evidence to show, that he was an unemployed male.
0:17:28 > 0:17:33Charles Hahn had deliberately withheld information about his change of circumstances -
0:17:33 > 0:17:36information he knew would have led to his application
0:17:36 > 0:17:39for social housing being rejected.
0:17:39 > 0:17:40Looking at all this evidence,
0:17:40 > 0:17:44you can see it's a man who's been incredibly deceptive but very
0:17:44 > 0:17:48methodical and systematic with the whole thing.
0:17:48 > 0:17:51Yes, I mean, for a few years he pretended to be a man,
0:17:51 > 0:17:53unemployed male with a family,
0:17:53 > 0:17:56who needed help and assistance from the council.
0:17:56 > 0:17:58We ourselves awarded him housing benefit,
0:17:58 > 0:18:01which we've overpaid him £23,000 as a result of his fraud.
0:18:01 > 0:18:06Yet, this was a man that's living a double life, earning £55,000 a year
0:18:06 > 0:18:07as an executive of a local council.
0:18:07 > 0:18:10You know, this guy should have known better.
0:18:10 > 0:18:13I just cannot believe - even now when I go through this with you -
0:18:13 > 0:18:16that this guy really thought he was going to get away with it.
0:18:16 > 0:18:19It almost feels like this is the type of fraud that's on your doorstep
0:18:19 > 0:18:21because it was someone within the council
0:18:21 > 0:18:24and you look at your colleagues and, you know, friends within work,
0:18:24 > 0:18:27and think, well, you wouldn't do that, the person you're working with wouldn't do that,
0:18:27 > 0:18:29but then, it's someone within your industry.
0:18:29 > 0:18:31No, you're right,
0:18:31 > 0:18:34it was one of our own committing fraud, really.
0:18:34 > 0:18:37Charles Hahn was called in for interview under caution,
0:18:37 > 0:18:41and in the face of overwhelming evidence, pleaded guilty
0:18:41 > 0:18:46to multiple offences under the Fraud Act and the Social Security Administration Act.
0:18:46 > 0:18:48The judge interestingly, though,
0:18:48 > 0:18:51had some pretty descriptive words on the case, didn't he?
0:18:51 > 0:18:52He was quite passionate about it.
0:18:52 > 0:18:56Yes, he did, he said, "In the summer of 2012,
0:18:56 > 0:18:59"someone meeting you would see a well-presented head of health and safety
0:18:59 > 0:19:02"at a large London borough with a good salary.
0:19:02 > 0:19:05"No-one would have guessed what a fraud you are."
0:19:07 > 0:19:09On December 20, 2016,
0:19:09 > 0:19:12Charles Hahn was given a prison sentence
0:19:12 > 0:19:14of two and a half years.
0:19:18 > 0:19:21For the investigators who exposed his deception,
0:19:21 > 0:19:23the punishment fit the crime.
0:19:23 > 0:19:26We were pleased when the result came through and he was put away in
0:19:26 > 0:19:28prison - I mean, that was a good result, really,
0:19:28 > 0:19:29because he thoroughly deserved it.
0:19:29 > 0:19:33Not only has he deprived people who genuinely need properties -
0:19:33 > 0:19:37and a nice property, too - he's gone on to claim money from the council,
0:19:37 > 0:19:39housing benefit and other things, council tax.
0:19:39 > 0:19:42You know, I have to pay my council tax, and we all have to pay.
0:19:42 > 0:19:45He didn't have to pay any of it because we thought he was unemployed.
0:19:45 > 0:19:50Charles Hahn has been ordered to pay over £46,000 to the Royal Borough
0:19:50 > 0:19:54of Greenwich by the end of March 2018.
0:19:54 > 0:19:57Should he fail to pay by the due date,
0:19:57 > 0:20:00he'll have to serve another 15 months in prison.
0:20:00 > 0:20:04In Greenwich, the actions of fraudsters like Charles Hahn have a direct
0:20:04 > 0:20:10impact on the 16,000 people currently sat on the social housing waiting list.
0:20:12 > 0:20:15From your point of view, you see people who are desperate for housing,
0:20:15 > 0:20:20desperate for accommodation, they're coming to you week in, week out.
0:20:20 > 0:20:23How does that make you feel on a personal level?
0:20:23 > 0:20:27And many of them I would consider to be the working poor.
0:20:27 > 0:20:30They are people who work in retail,
0:20:30 > 0:20:34many of them will be working on zero-hours contracts.
0:20:34 > 0:20:39So a lot of them won't claim benefits because their earnings are going up
0:20:39 > 0:20:41and down like a yo-yo.
0:20:41 > 0:20:45And frankly, I could cry for them, you know, because I don't...
0:20:45 > 0:20:47Sorry.
0:20:47 > 0:20:49Isn't that ridiculous?
0:20:49 > 0:20:51No, not in the slightest.
0:20:51 > 0:20:53But that's the whole thing, isn't it?
0:20:53 > 0:20:55It's an extremely emotional thing
0:20:55 > 0:20:59and you just want the system to be working how it should be.
0:20:59 > 0:21:03And that's why you're working tirelessly to make sure these people get
0:21:03 > 0:21:05the accommodation they deserve.
0:21:05 > 0:21:07It's sickening, isn't it?
0:21:07 > 0:21:12Because here we are trying to do our best to make sure there is a fair
0:21:12 > 0:21:15system for housing
0:21:15 > 0:21:20and then you get people who are trying to subvert the whole process.
0:21:20 > 0:21:25And so taking back our properties from these fraudsters and giving them to
0:21:25 > 0:21:30those in genuine need is a priority for this council and every council
0:21:30 > 0:21:31in the land.
0:21:38 > 0:21:43Back in Brent, we heard how the council's fraud team had become suspicious
0:21:43 > 0:21:46that Ingrid Shultz was actually living in Hammersmith whilst illegally
0:21:46 > 0:21:49subletting her social housing flat.
0:21:49 > 0:21:53She was telling us that one reason she was often in Hammersmith and Fulham
0:21:53 > 0:21:56was to look after her cat.
0:21:56 > 0:21:59Dave Verma and his counter-fraud team have recovered 60 properties in
0:21:59 > 0:22:01the last 12 months.
0:22:01 > 0:22:04I'm not sure people realise that we have professional teams of
0:22:04 > 0:22:07investigators who are very highly trained,
0:22:07 > 0:22:09who are not going to be fobbed off,
0:22:09 > 0:22:13who are going to be very tenacious and try to get
0:22:13 > 0:22:17to the bottom of things and try and do the right thing for the public purse.
0:22:17 > 0:22:19And that's exactly what they did.
0:22:19 > 0:22:23Utilising the law to forensically examine the financial activities at
0:22:23 > 0:22:25Ingrid Schultz's flat.
0:22:25 > 0:22:28So in order to confirm your suspicions of Ingrid Schultz,
0:22:28 > 0:22:32- you obviously needed that solid body of evidence.- Sure.
0:22:32 > 0:22:36This first piece of paperwork here shows, indeed, that Ingrid Schultz
0:22:36 > 0:22:39is at the property and she's got various credit going on there,
0:22:39 > 0:22:41various activity, as we'd expect.
0:22:41 > 0:22:45However, on the second page...
0:22:45 > 0:22:46This is quite surprising.
0:22:46 > 0:22:51This shows no less than 19 different people having some sort of credit
0:22:51 > 0:22:53activity at the property.
0:22:53 > 0:22:54- 19?- Yes.
0:22:54 > 0:22:58So she's had 19 different people living within that property?
0:22:58 > 0:23:02Yeah, well, our suspicion at that point was 19 people have had some
0:23:02 > 0:23:04kind of credit activity there. So it's very suspicious.
0:23:04 > 0:23:10Oh, my gosh. And then if you couple that with her bank account details,
0:23:10 > 0:23:12what did that help to confirm?
0:23:12 > 0:23:16Well, when we used our powers under the Prevention of Social Housing Fraud Act
0:23:16 > 0:23:18to actually get her bank statements in,
0:23:18 > 0:23:21these very quickly indicated that there was a problem.
0:23:21 > 0:23:24Because right here on the first page we've got the word "rent",
0:23:24 > 0:23:27"paid in", and an amount.
0:23:27 > 0:23:28It's incredibly clear.
0:23:28 > 0:23:31Pretty clear. Moving through the bank statement,
0:23:31 > 0:23:35that kind of activity is replicated on various pages.
0:23:35 > 0:23:39- Yeah.- So here we have the word "rent" and again, 520...
0:23:39 > 0:23:43- Yeah.- And here, "Kilburn rent", which is clearly our property.
0:23:43 > 0:23:45- It's very specific, isn't it?- Yeah.
0:23:45 > 0:23:47And then again, 520.
0:23:47 > 0:23:50With two bedrooms and a mattress in the living room,
0:23:50 > 0:23:53Ingrid Schultz could have been renting out all three rooms.
0:23:53 > 0:23:57At £520 per room, per month,
0:23:57 > 0:24:01she could have been taking in over £1,500 a month.
0:24:01 > 0:24:04And how much was she paying the council?
0:24:04 > 0:24:07On average, that was £150 per week.
0:24:07 > 0:24:11That means a potential profit of over £900 a month from illegally
0:24:11 > 0:24:13subletting her Brent flat.
0:24:13 > 0:24:16So she was making a tidy profit from this, wasn't she?
0:24:16 > 0:24:18She was, because at any given time,
0:24:18 > 0:24:22she was renting between two and sometimes three rooms in the property.
0:24:22 > 0:24:27The bank statements also revealed exactly how she was running her sublet scam.
0:24:27 > 0:24:30From the bank statements, we got a very good clue and that led us to
0:24:30 > 0:24:34a prominent website where people advertise rooms.
0:24:34 > 0:24:38So she was advertising your council property for private rent?
0:24:38 > 0:24:41- Yeah.- Let's have a look at the information.
0:24:41 > 0:24:45- So, what's this one?- Gorgeous double room, flat-share in Brondesbury.
0:24:45 > 0:24:48And here we have £145 per week.
0:24:48 > 0:24:51It's telling us it's five to ten minutes' walk from Brondesbury station.
0:24:51 > 0:24:53The availability is now.
0:24:53 > 0:24:56Minimum term - three months, maximum term - none.
0:24:56 > 0:25:02So it would look to anybody as if it was a genuine room offer.
0:25:02 > 0:25:04This woman was just coining in money, wasn't she?
0:25:04 > 0:25:08Well, there's a significant opportunity to make illegal profit, yes.
0:25:08 > 0:25:11- And she really cashed it in.- Yeah.
0:25:11 > 0:25:16Ingrid Schultz pleaded guilty to subletting her social housing property in Kilburn
0:25:16 > 0:25:20and making an unlawful profit of over £10,000.
0:25:20 > 0:25:25On the 16th of February 2017, she appeared for sentencing.
0:25:25 > 0:25:28Dave Verma was at court to witness the outcome.
0:25:28 > 0:25:32So, we take this very seriously at Brent Council and we spend quite
0:25:32 > 0:25:35considerable resources to investigate these matters and bring
0:25:35 > 0:25:37the perpetrators to justice.
0:25:37 > 0:25:43The maximum penalty for this offence is a two-year prison sentence or a hefty fine.
0:25:43 > 0:25:45And Ingrid Schultz has just been sentenced to 12 months,
0:25:45 > 0:25:48suspended for two years, which I think's a very good result,
0:25:48 > 0:25:51bearing in mind all the circumstances of the case.
0:25:51 > 0:25:55She'll also have to pay back over £10,000 in unlawful profit
0:25:55 > 0:25:57and £5,000 in costs.
0:25:57 > 0:26:01It is days like this that makes our job as fraud investigators well worthwhile,
0:26:01 > 0:26:07when we can hopefully send out a very strong message that we take this seriously and are here
0:26:07 > 0:26:10for the community to eradicate housing fraud.
0:26:17 > 0:26:21The housing crisis is affecting almost every part of the UK, but nowhere
0:26:21 > 0:26:23more so than London.
0:26:23 > 0:26:27The shortage of social housing in the capital city is so severe,
0:26:27 > 0:26:30and rents in the private sector so high,
0:26:30 > 0:26:34that thousands of people stuck in temporary accommodation are moving out
0:26:34 > 0:26:36and relocating to other parts of the country.
0:26:40 > 0:26:44An increase in demand is continuing to drive up property prices and
0:26:44 > 0:26:47private rents, with the gap between London and the rest of the UK
0:26:47 > 0:26:48wider than ever.
0:26:50 > 0:26:53In the capital, private rents are up to three times higher than they are
0:26:53 > 0:26:55in other parts of the UK.
0:26:58 > 0:27:02Vanessa Ashawe is living in temporary accommodation with her two children
0:27:02 > 0:27:03in Croydon, south London.
0:27:04 > 0:27:07Obviously, I don't like it because it keeps me in limbo.
0:27:07 > 0:27:10I don't know what I'm doing, I don't know where I'm going.
0:27:10 > 0:27:14I don't know in terms of schooling, you know, nursery for my kids,
0:27:14 > 0:27:16in terms of work.
0:27:16 > 0:27:20You know, there's so many different things there that people don't obviously, I suppose,
0:27:20 > 0:27:23as housing, they're not really thinking about that.
0:27:23 > 0:27:27Vanessa applied to Wandsworth Council for social housing in 2014
0:27:27 > 0:27:29when her relationship broke down.
0:27:29 > 0:27:31From the age I was 15, 16,
0:27:31 > 0:27:35I've always worked and I've always been able to stand on my own two feet,
0:27:35 > 0:27:37and support myself and my kids.
0:27:37 > 0:27:39I've never ever relied on social housing before.
0:27:39 > 0:27:41This is the first time.
0:27:41 > 0:27:42It can happen to anyone.
0:27:42 > 0:27:44You just never know.
0:27:44 > 0:27:48Vanessa and her two children have been living in this two-bed maisonette
0:27:48 > 0:27:50for the past two years.
0:27:50 > 0:27:53The rent here is £260 a week.
0:27:53 > 0:27:55In London, even though you have two boys,
0:27:55 > 0:27:58and though my son is 17 and James is two -
0:27:58 > 0:28:01there's a big age gap between them - but because they're the same sex,
0:28:01 > 0:28:03you can only have a two-bedroom property,
0:28:03 > 0:28:07so that means that me and James both have to share this room.
0:28:07 > 0:28:12I just don't have the luxury to spread out in my own bed the way that I would want to.
0:28:12 > 0:28:16Even though she's lived in Croydon her whole life,
0:28:16 > 0:28:18Vanessa is now planning to move away,
0:28:18 > 0:28:21leaving behind everything and everyone she knows.
0:28:26 > 0:28:30She signed up with Homefinder UK,
0:28:30 > 0:28:33who place people on the social housing waiting list
0:28:33 > 0:28:36in different parts of the country.
0:28:36 > 0:28:39Manchester, Liverpool, Cumbria, Wales, whatever it is,
0:28:39 > 0:28:42it just works out to be so much cheaper.
0:28:42 > 0:28:46A three-bedroom house property there is about £400 a month.
0:28:46 > 0:28:48It's amazing.
0:28:48 > 0:28:52Vanessa regularly checks online to see what social housing properties
0:28:52 > 0:28:55are currently available across the country.
0:28:55 > 0:28:57There has been a property that I've seen that I love,
0:28:57 > 0:29:00which is the one in Carlisle. It's a three-bedroom house.
0:29:00 > 0:29:03It's close to local shops and schools.
0:29:03 > 0:29:04It has a large family kitchen.
0:29:04 > 0:29:06It's got a front and back garden.
0:29:06 > 0:29:11I mean, I can't compare what is on this to what I have now because
0:29:11 > 0:29:12there is no comparison at all.
0:29:12 > 0:29:17This property is saying it's £386 a month...
0:29:17 > 0:29:20you know, and my property is £200-something a week.
0:29:20 > 0:29:22There is no comparison towards it.
0:29:22 > 0:29:28Vanessa is convinced her decision to leave London is the right one for her children.
0:29:28 > 0:29:29I think as a two-year-old,
0:29:29 > 0:29:32he hasn't started nursery or anything yet,
0:29:32 > 0:29:35so this is the perfect time for me to move.
0:29:35 > 0:29:38The chance of a home she can afford has finally given this single mum
0:29:38 > 0:29:43hope of putting down permanent roots after so long in temporary accommodation.
0:29:43 > 0:29:46I've got thoughts of how the property's going to be,
0:29:46 > 0:29:49what it's going to be like. I've got ideas of decoration in my head,
0:29:49 > 0:29:52and so forth. I mean, I've thought of...
0:29:52 > 0:29:56I've kind of just, you know, thought a lot about it.
0:29:56 > 0:29:58I am excited about the future now.
0:29:58 > 0:30:00I've had such...
0:30:00 > 0:30:02a hard time for the last couple of years,
0:30:02 > 0:30:08should I say that it's really been so tough, and now to move somewhere,
0:30:08 > 0:30:11start something new, you know, start a new life, that's how I see it,
0:30:11 > 0:30:14you know. It's going to be great.
0:30:14 > 0:30:17I'm really looking forward to it, so, yeah.
0:30:22 > 0:30:25The idea of social housing is that it provides
0:30:25 > 0:30:28secure and stable accommodation for people on low incomes
0:30:28 > 0:30:30or with particular needs.
0:30:30 > 0:30:32It is not intended for those on high incomes
0:30:32 > 0:30:36or for those who drive an expensive car and pay for private education.
0:30:39 > 0:30:43Our next case exposes a successful businesswoman,
0:30:43 > 0:30:45leading a double life to cheat authorities
0:30:45 > 0:30:48out of £43,000 in benefits
0:30:48 > 0:30:51and a highly sought-after social housing property.
0:30:53 > 0:30:56It is a shocking thing and there's no need for them to do it.
0:30:56 > 0:30:58It is pure greed.
0:31:02 > 0:31:04Croydon, south London -
0:31:04 > 0:31:10population, 381,000, and one of the UK's largest commercial districts.
0:31:12 > 0:31:15As this bustling London borough continues to expand,
0:31:15 > 0:31:18so, too, does the demand for social housing.
0:31:20 > 0:31:22Gail Campbell is a tenancy investigations officer
0:31:22 > 0:31:24for Croydon Council.
0:31:25 > 0:31:28When her colleagues in the housing office received an application
0:31:28 > 0:31:30from a woman called Angella Brown,
0:31:30 > 0:31:32they assumed they were dealing with a claimant
0:31:32 > 0:31:34in desperate need of help.
0:31:34 > 0:31:38Angella Brown came to Croydon Council and reported herself
0:31:38 > 0:31:42to be a homeless single parent with one child.
0:31:42 > 0:31:44According to Angella Brown,
0:31:44 > 0:31:46she'd been living with her daughter at a friend's house,
0:31:46 > 0:31:48but was forced to leave
0:31:48 > 0:31:51when the friend decided that the house was becoming overcrowded.
0:31:51 > 0:31:53There are nearly 5,000 households
0:31:53 > 0:31:55on the social housing waiting list in Croydon
0:31:55 > 0:31:57but, as a homeless single mother,
0:31:57 > 0:32:00Angella Brown was given the highest priority.
0:32:00 > 0:32:03In March, 2006, the London borough of Croydon
0:32:03 > 0:32:06were able to offer her a place to call her own.
0:32:06 > 0:32:09That application that she made was successful.
0:32:09 > 0:32:13She was housed in a council property, her and her daughter,
0:32:13 > 0:32:17and she would continue as a council tenant and pay rent to the council.
0:32:17 > 0:32:20Angella Brown settled into a council property in New Addington
0:32:20 > 0:32:24and, as far as the authorities were concerned,
0:32:24 > 0:32:26that was the end of the matter.
0:32:26 > 0:32:31But in 2008, a phone call to Croydon Council aroused suspicions.
0:32:31 > 0:32:35There was an anonymous tip-off from somebody that said
0:32:35 > 0:32:37that we'd housed her into a council property
0:32:37 > 0:32:40when she already had a property of her own
0:32:40 > 0:32:42and that property was habitable.
0:32:42 > 0:32:44Investigators were alarmed.
0:32:44 > 0:32:46By now, Angella Brown had been living
0:32:46 > 0:32:50at the New Addington address for two years.
0:32:50 > 0:32:54They conducted a Land Registry check against the name of Angella Brown.
0:32:54 > 0:32:58What they discovered suggested the tip-off was accurate.
0:32:58 > 0:33:02We were able, then, to make a check on the Land Registry
0:33:02 > 0:33:05and confirm that she did, in fact, own another property.
0:33:07 > 0:33:11Two and a half years before being awarded a council property,
0:33:11 > 0:33:14she'd purchased this flat in Thornton Heath.
0:33:14 > 0:33:17Angella Brown wasn't a homeless single mother
0:33:17 > 0:33:19in need of social housing.
0:33:19 > 0:33:20She was a property owner.
0:33:21 > 0:33:26So, looking at this property, what would Angella Brown be using it for?
0:33:26 > 0:33:29It's an investment property, so she would find it really easy
0:33:29 > 0:33:32to get a tenant that would be happy
0:33:32 > 0:33:34to live in that property and pay a rent.
0:33:34 > 0:33:37When authorities examined the mortgage application
0:33:37 > 0:33:41on the Thornton Heath property, they were stunned.
0:33:41 > 0:33:44Angella Brown had declared an income to her mortgage lender
0:33:44 > 0:33:47of £92,000 a year.
0:33:47 > 0:33:49And that wasn't all.
0:33:49 > 0:33:53Credit checks suggested that Angella Brown's financial circumstances
0:33:53 > 0:33:57were in complete contrast to what she'd told the council.
0:33:57 > 0:34:00That showed that she had a substantial amount of money
0:34:00 > 0:34:02to pay each month for a car.
0:34:02 > 0:34:05It was the top of the range and she was expected to pay,
0:34:05 > 0:34:09each month, £700, for the privilege of driving that car.
0:34:09 > 0:34:13- So, she was paying £700 a month to drive a car...- Yeah.
0:34:13 > 0:34:17..yet had applied for a council house property?
0:34:17 > 0:34:19Yeah, and claimed benefits.
0:34:19 > 0:34:24Since 1999, Angella Brown had claimed more than £43,000
0:34:24 > 0:34:28in income support, housing benefit and council tax benefit.
0:34:28 > 0:34:30How does that make you feel?
0:34:30 > 0:34:34Cos that, in itself, as a small part of the case, is just shocking,
0:34:34 > 0:34:38- in my opinion.- It's somebody that's living two lifestyles.
0:34:38 > 0:34:41One lifestyle is set aside for the council
0:34:41 > 0:34:45but I'm sure to her friends outside and her business colleagues
0:34:45 > 0:34:50and everybody else that knows her, she probably lives the high life.
0:34:50 > 0:34:51Later...
0:35:01 > 0:35:03..Angella Brown is exposed on tape...
0:35:04 > 0:35:07It's just lie upon lie.
0:35:07 > 0:35:11..as investigators come face-to-face with her.
0:35:11 > 0:35:14We were one step ahead of her all the way through this interview.
0:35:21 > 0:35:23The housing crisis is hitting hard,
0:35:23 > 0:35:27so it's inevitable that every time someone cheats the system by holding
0:35:27 > 0:35:29on to a property they don't need,
0:35:29 > 0:35:31or by unlawfully subletting it,
0:35:31 > 0:35:34someone else loses out.
0:35:34 > 0:35:38Our next case spans two years and involves this young couple
0:35:38 > 0:35:42who became innocent victims caught up in a tenancy fraud case
0:35:42 > 0:35:46involving this man, Kibria Ahmed.
0:35:46 > 0:35:48I was really upset. It was horrible.
0:35:48 > 0:35:52It felt like everything was perfect and then it's just been taken away.
0:35:52 > 0:35:58The story begins here, in Tower Hamlets, where, in October 2015,
0:35:58 > 0:36:00this young couple, Shannon and her boyfriend Nayim,
0:36:00 > 0:36:02were looking to build a home together.
0:36:02 > 0:36:05We had a look on Gumtree and found this flat.
0:36:05 > 0:36:07It seemed perfect for what we wanted.
0:36:07 > 0:36:09- It was nice.- We arranged to meet up with the landlord.
0:36:09 > 0:36:12We sort of reviewed it and everything seemed OK.
0:36:12 > 0:36:17He seemed legit. And then, yeah, we sort of moved in the following week.
0:36:17 > 0:36:22The rent for the one-bedroom flat was £800 per month,
0:36:22 > 0:36:24plus a £600 deposit.
0:36:24 > 0:36:27They'd been saving up and could just about afford it.
0:36:27 > 0:36:31We used to be sharing flats before, sharing houses,
0:36:31 > 0:36:33and being in rooms and someone else there.
0:36:33 > 0:36:38But that was only our place, there's no-one there and it looks like it's our home.
0:36:38 > 0:36:39As soon as they moved in,
0:36:39 > 0:36:43Shannon and Nayim set about turning their flat into a home.
0:36:43 > 0:36:46It was just great getting things for the house.
0:36:46 > 0:36:47It felt really good.
0:36:47 > 0:36:50It felt like home. I loved coming home from work and stuff like that.
0:36:50 > 0:36:53- It was brilliant.- Yeah, it was nice.
0:36:53 > 0:36:55Like, having a new home,
0:36:55 > 0:36:58you are happy to call someone, to invite someone to come round.
0:36:58 > 0:37:01- Yeah, proud.- It was good. - It's our house.
0:37:01 > 0:37:04But unbeknown to Shannon and Nayim,
0:37:04 > 0:37:08their new home was not a private flat, it was social housing.
0:37:08 > 0:37:12And the tenant, Kibria Ahmed, the man who was supposed to be living there,
0:37:12 > 0:37:14was unlawfully subletting it.
0:37:14 > 0:37:17Mr Ahmed was allocated the flat
0:37:17 > 0:37:21back in 2008 by housing association Poplar Harca.
0:37:21 > 0:37:25Following a tip-off that Mr Ahmed wasn't living there,
0:37:25 > 0:37:28Poplar Harca's fraud investigator Avril Drummond
0:37:28 > 0:37:30decided to investigate.
0:37:30 > 0:37:33On the 3rd of December 2015,
0:37:33 > 0:37:36she called round to the flat hoping to see Mr Ahmed, but instead finding
0:37:36 > 0:37:38Shannon and Nayim.
0:37:38 > 0:37:40It was a police officer and it was this lady. I thought,
0:37:40 > 0:37:43"What's happened? Maybe something's happened."
0:37:43 > 0:37:45She sort of said, "I'm the proper landlord."
0:37:45 > 0:37:48I was a bit like, "No, you're not." So she showed me her ID
0:37:48 > 0:37:52and I was like, "OK, maybe you'd better come in."
0:37:52 > 0:37:53Avril broke the news to them
0:37:53 > 0:37:56that the flat was being unlawfully sublet.
0:37:56 > 0:37:59Shannon and Nayim were devastated.
0:37:59 > 0:38:02I was really upset. I mean, it was horrible.
0:38:02 > 0:38:06It felt like everything was perfect and then it's just been taken away.
0:38:06 > 0:38:09How can someone do that to innocent people?
0:38:09 > 0:38:11It really hurt.
0:38:11 > 0:38:15I mean, having a house, finally living on my own with the person
0:38:15 > 0:38:18that I really wanted to be with and then everything was taken away.
0:38:18 > 0:38:22Avril needed to come face-to-face with her unlawful tenant,
0:38:22 > 0:38:24so she enlisted the help of Shannon and Nayim.
0:38:24 > 0:38:28She came up with a plan to ask the landlord around to fix a blocked sink.
0:38:28 > 0:38:31Our cameras were filming with Avril and her team when this plan
0:38:31 > 0:38:35came to fruition on the 9th of December 2015.
0:38:35 > 0:38:38The best scenario would be for
0:38:38 > 0:38:43this landlord to tell us everything that has been going on,
0:38:43 > 0:38:46hold his hands up, then we'll take it from there.
0:38:48 > 0:38:50Once round at the flat,
0:38:50 > 0:38:53Avril gives Shannon and Nayim a last-minute briefing.
0:38:53 > 0:38:56Hello. All right?
0:38:56 > 0:38:59Thank you for seeing me again today.
0:38:59 > 0:39:02Obviously, we're now waiting for your landlord to turn up, OK?
0:39:02 > 0:39:05So we'll just play it by ear when he gets here.
0:39:05 > 0:39:09We've got the police on standby and they are in the locality, as well, OK?
0:39:09 > 0:39:14Nayim calls the man who's posing as his landlord and checks
0:39:14 > 0:39:15he's on his way.
0:39:15 > 0:39:17Hi, are you all right?
0:39:17 > 0:39:21Yeah, we are home now, so if you want you can come around...
0:39:23 > 0:39:27- All right, thanks, bye. - Next few minutes.
0:39:27 > 0:39:29The man in question is about to arrive.
0:39:31 > 0:39:34I'm going to be in here. He's not going to know who I am.
0:39:34 > 0:39:37I've got my identification badge on me but I'm not going to be
0:39:37 > 0:39:39- wearing it until he comes in.- Yeah.
0:39:40 > 0:39:44Later, the search for the illegal subletter Kibria Ahmed
0:39:44 > 0:39:45is stepped up.
0:39:45 > 0:39:48I need to speak to you, please. I'm from Poplar Harca.
0:39:48 > 0:39:50Can you open the door, please, sir?
0:39:50 > 0:39:53And what happens when he's finally brought to justice.
0:39:53 > 0:39:55INDISTINCT SHOUTING
0:40:07 > 0:40:12Back in Croydon, Angella Brown had obtained a council flat,
0:40:12 > 0:40:15despite owning this property in Thornton Heath,
0:40:15 > 0:40:19having an income of over £90,000 a year,
0:40:19 > 0:40:22and a finance deal for a top-of-the-range car.
0:40:22 > 0:40:25It's somebody that's living two lifestyles.
0:40:25 > 0:40:27She probably lives the high life.
0:40:30 > 0:40:32Fraud investigators needed to learn
0:40:32 > 0:40:35the full extent of Angella Brown's deception.
0:40:35 > 0:40:38They teamed up with the Department for Work and Pensions
0:40:38 > 0:40:41to look more closely at her claims history.
0:40:41 > 0:40:44Benefits were being claimed that were their domain.
0:40:44 > 0:40:46They were happy to come onboard
0:40:46 > 0:40:49and the investigation then became a joint investigation.
0:40:49 > 0:40:51And it was this joint investigation
0:40:51 > 0:40:55that uncovered a whole other level of fraudulent activity.
0:40:55 > 0:40:59In 1999, two years before approaching Croydon Council,
0:40:59 > 0:41:00stating that she was homeless,
0:41:00 > 0:41:04Angella Brown had been receiving housing and council tax benefits,
0:41:04 > 0:41:07while apparently renting a private property
0:41:07 > 0:41:09from a man in north Croydon.
0:41:10 > 0:41:13But when authorities discovered the identity of Brown's landlord,
0:41:13 > 0:41:15they were stunned.
0:41:15 > 0:41:18Through the investigation, it transpired
0:41:18 > 0:41:22that the landlord for that property and the owner of that property
0:41:22 > 0:41:24was, in fact, her husband.
0:41:24 > 0:41:26Over the course of nine years,
0:41:26 > 0:41:31Angella Brown fraudulently claimed more than £43,000 in benefits,
0:41:31 > 0:41:33as well as obtaining a council flat.
0:41:33 > 0:41:37But she wasn't even living at the property she'd been allocated.
0:41:37 > 0:41:40She was, in fact, unlawfully subletting it to someone else,
0:41:40 > 0:41:43while still living with her husband.
0:41:43 > 0:41:47Subletting is a real issue for you guys.
0:41:47 > 0:41:49It's one of the worst things you can do with a property
0:41:49 > 0:41:51that's been given to you.
0:41:51 > 0:41:55You've been given that property because you need somewhere to live.
0:41:55 > 0:41:58You've not been given that property to then hand it out
0:41:58 > 0:42:00to somebody else and make your own income out of it.
0:42:00 > 0:42:03Bank records revealed that the money Angella Brown made went towards
0:42:03 > 0:42:06not just a top-of-the-range car, but also school fees
0:42:06 > 0:42:10to provide one of her children with a private education.
0:42:10 > 0:42:12It is a shocking thing when you see
0:42:12 > 0:42:16that somebody has got a comfortable lifestyle, shall we say,
0:42:16 > 0:42:20and there's no need for them to do it. It is pure greed.
0:42:20 > 0:42:22How would you describe Angella Brown?
0:42:22 > 0:42:29I would say that Angella Brown is a cut above your normal tenancy cheat.
0:42:29 > 0:42:33She's got a substantial income, more than most people I know,
0:42:33 > 0:42:37more than I would ever, ever imagine myself earning.
0:42:37 > 0:42:42But she still feels that she's entitled to have a council property
0:42:42 > 0:42:45and the only reason that I think that she thinks like that
0:42:45 > 0:42:47is because it's a source of income.
0:42:49 > 0:42:52On 22nd September, 2010,
0:42:52 > 0:42:56Croydon's head of anti-fraud, David Hogan, invited Angella Brown
0:42:56 > 0:42:59to Croydon's council offices for an interview under caution.
0:43:01 > 0:43:04How we see it is, we're giving people a chance to come clean,
0:43:04 > 0:43:07we're giving them a chance to come honest. It's really their choice
0:43:07 > 0:43:10as to whether they continue to tell lie upon lie
0:43:10 > 0:43:12or whether they realise that they have been caught
0:43:12 > 0:43:15and they're going to actually finally start telling the truth.
0:43:15 > 0:43:19The audio recording of Angella Brown's interview under caution
0:43:19 > 0:43:23provides a window into the world of a fraudster.
0:43:23 > 0:43:26Let me just play a bit of the actual cassette tape for you
0:43:26 > 0:43:27and you can hear her.
0:43:35 > 0:43:38Investigators had done their homework.
0:43:38 > 0:43:41They had evidence, including Land Registry documents
0:43:41 > 0:43:43and a mortgage application,
0:43:43 > 0:43:47which proved that Angella Brown had purchased a property in 2003.
0:43:47 > 0:43:51But, in her interview, Angella Brown uses her child
0:43:51 > 0:43:54in an effort to distance herself from the purchase.
0:44:24 > 0:44:29It is amazing actually listening to Angella Brown talking there,
0:44:29 > 0:44:32because she's really trying to come across
0:44:32 > 0:44:34as if she's done absolutely nothing wrong.
0:44:34 > 0:44:38I think what strikes me here is she's actually using her children
0:44:38 > 0:44:41- to, if you like, create a defence for her own actions.- Yeah.
0:44:41 > 0:44:44The interviewer wants to see what Angella Brown is going to say.
0:44:44 > 0:44:47Is she going to tell the truth or is she going to tell further lies
0:44:47 > 0:44:51- to compound the ones she's already started?- That's it, yeah.
0:44:51 > 0:44:56Next, investigators quiz Angella Brown on her child's private education.
0:44:56 > 0:44:58Having already contacted the school,
0:44:58 > 0:45:01they know she was paying the fees herself.
0:45:01 > 0:45:05But in the interview, she, again, had a different story.
0:45:21 > 0:45:26So, again, straightaway, when questioned on the private school,
0:45:26 > 0:45:30she's come up with an excuse - the grandmother.
0:45:30 > 0:45:34And she's coming up with a version of events which, on the surface,
0:45:34 > 0:45:37might appear reasonable, had we not already gone further
0:45:37 > 0:45:39and discovered how the fees WERE being paid at that school.
0:45:39 > 0:45:42We were one step ahead of her all the way through this interview.
0:45:42 > 0:45:45Angella Brown decided to stick to her lies
0:45:45 > 0:45:48and Croydon Council decided to prosecute.
0:45:48 > 0:45:51It would be down to a jury to decide the outcome.
0:45:51 > 0:45:55So, what's going through your mind just before the verdict?
0:45:55 > 0:45:59We're there, on the outside, just wondering,
0:45:59 > 0:46:03"What are these 12 men and women going to think
0:46:03 > 0:46:05"and are they going to reach the right conclusion?"
0:46:06 > 0:46:10At Croydon Crown Court on November 7th, 2014,
0:46:10 > 0:46:12a jury found Angella Brown guilty
0:46:12 > 0:46:16of eight charges of dishonestly making a false representation
0:46:16 > 0:46:19and one of obtaining property by deception.
0:46:20 > 0:46:22Brown was sentenced to 12 months' imprisonment.
0:46:24 > 0:46:28The property she fraudulently obtained could now be offered
0:46:28 > 0:46:30to a family in genuine need.
0:46:30 > 0:46:33And there was a positive outcome with this case, wasn't there?
0:46:33 > 0:46:37Yeah, I mean, in many ways, there were positive outcomes,
0:46:37 > 0:46:40both in the fact that we were able to deal with Angella Brown,
0:46:40 > 0:46:42but by getting the property back,
0:46:42 > 0:46:44we were able to put a deserving tenant in there.
0:46:44 > 0:46:46That property is occupied now by people,
0:46:46 > 0:46:48it's going to change their lives
0:46:48 > 0:46:51and if it sends them on their way to success,
0:46:51 > 0:46:54then, you know, we've done incredibly well.
0:47:01 > 0:47:03Back in the London Borough of Tower Hamlets,
0:47:03 > 0:47:06Shannon and her boyfriend Nayim thought they'd found a place
0:47:06 > 0:47:09to call home, but a few months after moving in,
0:47:09 > 0:47:11they discovered they'd been conned.
0:47:12 > 0:47:15The flat they'd been renting was a social housing property
0:47:15 > 0:47:20and the tenant, Kibria Ahmed, was committing fraud by subletting it.
0:47:20 > 0:47:24With their help, fraud investigator Avril Drummond is trying
0:47:24 > 0:47:26to track down her tenant.
0:47:28 > 0:47:31Hello, thank you for seeing me again today.
0:47:31 > 0:47:34Obviously, we're now waiting for your landlord to turn up, OK?
0:47:34 > 0:47:37So we'll just play it by ear when he gets here.
0:47:37 > 0:47:41We've got the police on standby and they're in the locality as well, OK?
0:47:45 > 0:47:48Eventually, a man turns up.
0:47:48 > 0:47:50But it's not Mr Ahmed.
0:47:50 > 0:47:54Avril calls the police in and he is arrested, questioned,
0:47:54 > 0:47:56but later released without charge.
0:47:59 > 0:48:03The next morning, Avril briefs fellow investigator Mike Frost
0:48:03 > 0:48:05about the previous day's events.
0:48:05 > 0:48:07We asked him about Mr Ahmed.
0:48:07 > 0:48:10He said, as a friend, he was helping Mr Ahmed, but he only
0:48:10 > 0:48:13posed as the landlord.
0:48:13 > 0:48:16He took the £800 a month and gave it to his friend.
0:48:16 > 0:48:18He said, "I'm not taking any money for myself."
0:48:18 > 0:48:20That's kind of him, isn't it?
0:48:20 > 0:48:26The rent Kibria Ahmed was paying to Poplar Harca was just £292 a month.
0:48:26 > 0:48:29Avril and Mike are more determined than ever to track him down
0:48:29 > 0:48:32and bring him to justice.
0:48:32 > 0:48:35They get a tip-off that he's in the area and then they spot his car.
0:48:38 > 0:48:42- Eh?- As in Kibria? Possibly?
0:48:42 > 0:48:45I need to speak to you, please.
0:48:45 > 0:48:47Sorry? I'm from Poplar Harca.
0:48:49 > 0:48:52- He saw...- Can you open the door, please, sir?
0:48:54 > 0:48:58I'm Michael Frost from the fraud investigation team. Are you Kibria?
0:48:58 > 0:49:01His identity is confirmed and Avril calls the police.
0:49:01 > 0:49:04And Kibria Ahmed, in the hooded coat,
0:49:04 > 0:49:07is handcuffed and led away for questioning.
0:49:07 > 0:49:10They are searching his vehicle at the moment, which he said was a gift
0:49:10 > 0:49:15from his mother, so we'll wait and see if they uncover any evidence from there.
0:49:20 > 0:49:24It's now more than 12 months since his arrest,
0:49:24 > 0:49:28and Kibria Ahmed is about to face justice at Basildon Crown Court.
0:49:28 > 0:49:32I feel justified in bringing the case to court.
0:49:32 > 0:49:37I think too many people believe social housing fraud is not a big deal
0:49:37 > 0:49:40and it doesn't really matter, but I think we've got to start sending
0:49:40 > 0:49:43that message out that we are taking things seriously.
0:49:43 > 0:49:46On January the 19th, 2017,
0:49:46 > 0:49:5130-year-old Kibria Ahmed pleaded guilty to two counts of fraud,
0:49:51 > 0:49:53including unlawful subletting contrary to the
0:49:53 > 0:49:56Prevention of Social Housing Tenancy Fraud Act.
0:49:56 > 0:50:00That's the first criminal case that Poplar Harca have brought
0:50:00 > 0:50:02for tenancy fraud, so it was quite a big case for us.
0:50:02 > 0:50:06Kibria Ahmed did his best to avoid our cameras
0:50:06 > 0:50:09but he couldn't avoid justice.
0:50:09 > 0:50:12He was given a 12-month prison sentence,
0:50:12 > 0:50:14suspended for two years, and was ordered
0:50:14 > 0:50:16to carry out 120 hours' unpaid work
0:50:16 > 0:50:18in the community.
0:50:18 > 0:50:22I'm really happy and satisfied with the proceedings today.
0:50:22 > 0:50:27I'm happy with the result we've got for Poplar Harca and getting
0:50:27 > 0:50:30the message out that tenancy fraud is not going to be tolerated.
0:50:30 > 0:50:34We'll tackle it head on and we're going to bring prosecutions
0:50:34 > 0:50:36like this in the future.
0:50:36 > 0:50:40After the hearing, as Kibria Ahmed made a run for it,
0:50:40 > 0:50:43not everyone seemed entirely happy with the proceedings.
0:50:43 > 0:50:46INDISTINCT SHOUTING
0:50:49 > 0:50:53As for Shannon and Nayim, the innocent victims who were
0:50:53 > 0:50:57tricked into subletting Kibria Ahmed's social housing flat,
0:50:57 > 0:51:01they had no choice but to move out and are now flat hunting again.
0:51:01 > 0:51:03I really miss this place.
0:51:03 > 0:51:05We got engaged there. He proposed to me there.
0:51:05 > 0:51:09On Christmas Day. We've got so many memories in this place.
0:51:09 > 0:51:12Our friends coming round, my family coming here.
0:51:12 > 0:51:16- Yeah, it was...- It's horrible. It's all just been taken away.
0:51:16 > 0:51:20The house that we've made a home, built up, just gone.
0:51:20 > 0:51:23Everything gone. And now we are back to square one.
0:51:29 > 0:51:32Tenancy fraud is never a victimless crime.
0:51:32 > 0:51:36There's always a financial cost and a very human cost to pay.
0:51:36 > 0:51:39But thanks to the tireless work of housing fraud investigators across
0:51:39 > 0:51:43the UK, those who are cheating the system are being tracked down
0:51:43 > 0:51:47and their properties are being reclaimed and re-let.
0:51:49 > 0:51:52Since 2014, in the East End of London,
0:51:52 > 0:51:57Tower Hamlets Council has successfully recovered 134 properties as a result
0:51:57 > 0:52:00of fraud-related investigations.
0:52:00 > 0:52:03Are you going to go back on the slide?
0:52:03 > 0:52:07Amy Sictorness and her daughter Lucia were on the social housing waiting list
0:52:07 > 0:52:12for three years and applied for more than 200 properties before finally
0:52:12 > 0:52:14getting a two-bedroom flat.
0:52:14 > 0:52:17KNOCKING
0:52:19 > 0:52:21- Nearly there.- Yeah.
0:52:21 > 0:52:24Hi, Amy, nice to meet you.
0:52:24 > 0:52:26- This is Lucia.- Hi, Lucia.
0:52:26 > 0:52:28- Say hello.- Hi!
0:52:28 > 0:52:30So, what have we got here then?
0:52:30 > 0:52:32So, this is my two-bedroom flat.
0:52:32 > 0:52:33In here, this is the living room.
0:52:33 > 0:52:35It's nice and bright and big, isn't it?
0:52:35 > 0:52:37It is a really nice size.
0:52:37 > 0:52:40So, tell me about your situation before you moved into this property.
0:52:40 > 0:52:43- Where were you living?- I was just living over the road with my mum in
0:52:43 > 0:52:46another two-bedroom flat, my mum and my twin sister.
0:52:46 > 0:52:49And, obviously, me and my twin, we shared a room.
0:52:49 > 0:52:52Amy desperately needed a place of her own,
0:52:52 > 0:52:54but she had no choice but to wait.
0:52:56 > 0:53:00Just one room, you've got the baby's cot in there, obviously,
0:53:00 > 0:53:02mine and my sister's bed, all the baby's stuff.
0:53:02 > 0:53:05It's funny, because one little person just takes up so much room.
0:53:05 > 0:53:10It's mad. It's very overcrowded and I think it must have been very stressful for my sister as well.
0:53:10 > 0:53:15A privately-rented two-bedroom flat in this area can cost over £2,200
0:53:15 > 0:53:18per month, well beyond Amy's price range.
0:53:18 > 0:53:21Reluctantly, she turned to the council for help.
0:53:21 > 0:53:25I went down to the council and put my name on their housing list.
0:53:25 > 0:53:29And I was bidding for about three, four years.
0:53:29 > 0:53:31Three or four years?
0:53:31 > 0:53:35Yeah, I bid on over 200 places before I got to view this one.
0:53:35 > 0:53:37Did you lose heart at any point?
0:53:37 > 0:53:39I did get to view some properties and that,
0:53:39 > 0:53:41but obviously people was always in front of me.
0:53:41 > 0:53:43And obviously they accepted it.
0:53:43 > 0:53:45And every time I'd feel gutted.
0:53:45 > 0:53:47I'd be the third person that gets refusal on it
0:53:47 > 0:53:50and I'd get to go and view the properties and you just stand there
0:53:50 > 0:53:52thinking, "Please don't accept it, please don't accept it,
0:53:52 > 0:53:55"so I can have it." And then I'd walk home, I'd ring my mum and I'd cry.
0:53:55 > 0:53:57I'd be like, "I didn't get it again."
0:53:57 > 0:54:01For Amy's mum, Julie, it was also crucial that her daughter
0:54:01 > 0:54:04and granddaughter were able to live close by.
0:54:04 > 0:54:06How would you have felt if, you know,
0:54:06 > 0:54:10Amy had been given a property or offered a property that wasn't so close to you?
0:54:10 > 0:54:14That, actually, would have upset me because, you know,
0:54:14 > 0:54:15we've always been close
0:54:15 > 0:54:18and from when Lucia was born they was living with me,
0:54:18 > 0:54:22so I'd got to see her first, you know, steps kind of thing,
0:54:22 > 0:54:25and then for her to have sort of moved out...
0:54:25 > 0:54:27I would have been concerned about her because, you know,
0:54:27 > 0:54:30I'm on hand if anything happens.
0:54:30 > 0:54:32You know, I'm always sort of, I can be, you know,
0:54:32 > 0:54:34I can be there in five minutes kind of thing.
0:54:34 > 0:54:38If she was living out of the borough with no family, you know,
0:54:38 > 0:54:39what would she do?
0:54:39 > 0:54:41What would she do being on her own?
0:54:42 > 0:54:48But in November 2015, Tower Hamlets Council held an amnesty to encourage tenancy cheats to hand
0:54:48 > 0:54:52back keys without consequence or risk of court action.
0:54:52 > 0:54:55They got back properties worth £13 million.
0:54:55 > 0:54:58Amy's was one of the first flats they recovered.
0:55:00 > 0:55:04I couldn't have been happier, especially just when it said a two-bedroom as well.
0:55:04 > 0:55:07I thought all my Christmases had come at once.
0:55:07 > 0:55:09The fact that I did get it just shows me that there is hope
0:55:09 > 0:55:13because there's a lot of people that's in the same situation that I was
0:55:13 > 0:55:17and obviously losing hope and that sort of thing is horrible, so,
0:55:17 > 0:55:20just fingers crossed they carry on with what they're doing and other
0:55:20 > 0:55:22people do get offered properties like this as well.
0:55:22 > 0:55:27When Amy got the letter for this property, how did you feel?
0:55:27 > 0:55:29Could not believe it. Really excited.
0:55:29 > 0:55:33Really, you know, never wanted her to leave home kind of thing,
0:55:33 > 0:55:38but so excited that she had got her own home and the fact that it was so close.
0:55:38 > 0:55:41Amy's family have been in the area for generations
0:55:41 > 0:55:45and bringing up a young child, it's important for her to have a support
0:55:45 > 0:55:48network close by. But this isn't always possible.
0:55:48 > 0:55:52The number of homeless families being relocated outside London has
0:55:52 > 0:55:54increased fivefold in the last decade.
0:55:55 > 0:55:58And now you've got your own place,
0:55:58 > 0:56:02what difference has this place made to your life?
0:56:02 > 0:56:04Well, obviously, it's just over the road from my mum,
0:56:04 > 0:56:07I've got a lot of support, it's just over the road from my mum's sister.
0:56:07 > 0:56:08I've always grown up in Bethnal Green.
0:56:08 > 0:56:11My mum, even like my nan and my grandad,
0:56:11 > 0:56:14their nans and grandads, we've all been born and bred in Bethnal Green.
0:56:14 > 0:56:17So, it's all we know. So if I would have had to have moved out,
0:56:17 > 0:56:19I would have been lost.
0:56:19 > 0:56:23So, that's why this area, in terms of finding a suitable council property,
0:56:23 > 0:56:25- is so important to you? - Yeah, definitely.
0:56:25 > 0:56:29Even when Lucia goes to nursery, my mum will be able to help
0:56:29 > 0:56:31because obviously then I'll go back to work.
0:56:31 > 0:56:33I worked right up until three weeks before I had Lucia.
0:56:33 > 0:56:36So once Lucia's two, she'll go to nursery and I'll definitely get
0:56:36 > 0:56:37myself back into work.
0:56:37 > 0:56:40And is that something that when you got this property, you were thinking,
0:56:40 > 0:56:43"Yes, now this gives me a base in order to kind of carry on
0:56:43 > 0:56:45"with my future and, you know, think about those types of things?"
0:56:45 > 0:56:49Yeah, definitely. When obviously, like, I started a family sort of thing,
0:56:49 > 0:56:52you do think about, obviously, once she grows up, she goes to school,
0:56:52 > 0:56:54you go out to work in the morning and that sort of thing, like,
0:56:54 > 0:56:57how am I going to do all that happily from one room in my mum's?
0:56:57 > 0:57:01Do you know what I mean? It's nice to have your own house.
0:57:01 > 0:57:03It's all about growing up in a way, ain't it?
0:57:04 > 0:57:06With her family supporting her,
0:57:06 > 0:57:09Amy's looking to return to work as soon as possible.
0:57:12 > 0:57:17Amy's story shows how social housing can have a real, positive impact,
0:57:17 > 0:57:20not just on individuals, but on entire families.
0:57:20 > 0:57:23And it's stories like this that motivate housing investigators
0:57:23 > 0:57:28as they continue in their fight to crack down on tenancy fraud.