0:00:02 > 0:00:07We live in a country where the taxes we pay go to provide essential services that we rely on every day.
0:00:07 > 0:00:14It's also there to give us a safety net in case life takes an unexpected turn.
0:00:14 > 0:00:18This vital money supports people in a time of need.
0:00:18 > 0:00:21The poor chap was anxious and agitated.
0:00:21 > 0:00:27But there will always be some people who see that money as something they deserve, even when they don't.
0:00:27 > 0:00:32This revealed that she had fraudulently claimed benefit in the region of £75,000.
0:00:32 > 0:00:37Welcome to the world of Saints And Scroungers.
0:00:59 > 0:01:04Saints And Scroungers shines a light on those worthy welfare claimants
0:01:04 > 0:01:08and casts a shadow on the cheats trying to beat the system.
0:01:08 > 0:01:15On the one hand, investigators all across the UK are chasing fraudsters who steal from the public purse.
0:01:15 > 0:01:20On the other hand, there are the saints, fighting to ensure
0:01:20 > 0:01:23people get the help they are genuinely entitled to.
0:01:23 > 0:01:25Coming up on today's show...
0:01:25 > 0:01:29the intriguing tale of the IT tax dodger.
0:01:29 > 0:01:33We didn't expect him to walk in with a cheque for £500,000.
0:01:33 > 0:01:39And the mother who sacrificed everything for family, house and home.
0:01:39 > 0:01:41I thought I really do need help.
0:01:45 > 0:01:47Taxes, love them or loathe them,
0:01:47 > 0:01:54it's the money that we pay in to make sure that society keeps ticking over. It's just the way it works.
0:01:54 > 0:02:00But then there are some people who see that money as theirs when it isn't.
0:02:02 > 0:02:04Meet Stephen Maxwell.
0:02:04 > 0:02:09Back in 2007, he was not only earning top dollar as an IT consultant,
0:02:09 > 0:02:15but he was also hailed a hero after he helped rescue people from a train crash in Cumbria.
0:02:17 > 0:02:20The stress he suffered following the rail accident
0:02:20 > 0:02:24left him unable to continue his work
0:02:24 > 0:02:27and he ended up filing a claim for compensation.
0:02:27 > 0:02:33However, when National Rail contacted HM Revenue & Customs to verify Maxwell's earnings,
0:02:33 > 0:02:35alarm bells started to ring.
0:02:39 > 0:02:43It looked like Maxwell didn't exist on HMRC tax records.
0:02:44 > 0:02:49But was this a tax-dodging apparition or was there a very simple explanation?
0:02:53 > 0:02:58I've come down to meet Clare Merrills, HMRC spokesperson,
0:02:58 > 0:03:00to talk about the all-too-real problem
0:03:00 > 0:03:02of people not paying their tax.
0:03:02 > 0:03:06How much is lost to tax fraud every year?
0:03:06 > 0:03:11We're looking at £4 billion a year through people actually evading paying their taxes.
0:03:11 > 0:03:17What's the impact on the country for the rest of us when people don't pay their taxes?
0:03:17 > 0:03:23If everybody paid what they were due to pay, then we would be in a very, very different situation.
0:03:23 > 0:03:27But if you think about it, if you're paying your taxes,
0:03:27 > 0:03:31the person next door is bragging in the pub about not paying theirs,
0:03:31 > 0:03:37a few years ago, that would actually almost have been, "Well done," it's quite acceptable.
0:03:37 > 0:03:39Times are changing now.
0:03:39 > 0:03:45The country is in a position where it needs all the money that it can get to fund all sorts of things we need,
0:03:45 > 0:03:49mending the roads, paying hospitals, that's where our money goes.
0:03:49 > 0:03:55No longer is there this acceptance that that's a really good, old boy thing to do, not paying your taxes,
0:03:55 > 0:04:00because we all now feel, "I pay mine. Why aren't you paying yours?"
0:04:00 > 0:04:06That's exactly the question that tax investigators were asking.
0:04:06 > 0:04:12Now, it seemed that Maxwell had been earning a fortune working as an IT consultant before the crash.
0:04:12 > 0:04:17Not according to tax records, unless, of course, he was giving the taxman the slip.
0:04:17 > 0:04:20Maxwell's name was passed to investigator Paul Rooney
0:04:20 > 0:04:23who was already interested in the same person.
0:04:25 > 0:04:29Back in 1999, Stephen Maxwell was an IT consultant.
0:04:29 > 0:04:33He lived in Bexley in Kent with his wife and family
0:04:33 > 0:04:37and he was very good at his job as an IT consultant
0:04:37 > 0:04:41and worked within the London City banks.
0:04:41 > 0:04:46Maxwell was a director of his own limited company, in other words, a one-man band.
0:04:46 > 0:04:51The contracts he had with the banks were with the limited companies who would pay him.
0:04:51 > 0:04:57During the 1990s, Stephen Maxwell had several limited companies that had folded
0:04:57 > 0:04:59with debts owing to Inland Revenue.
0:04:59 > 0:05:02This was known as "phoenixism"
0:05:02 > 0:05:08where the company carries a liability to an amount of tax that it owes to the department,
0:05:08 > 0:05:13and rather than pay those liabilities, the company would just fold and liquidate,
0:05:13 > 0:05:17and the director becomes a director of a new company,
0:05:17 > 0:05:19and that sets up as if nothing's happened.
0:05:19 > 0:05:24OK, so the indications were that Maxwell was engaged in what's called "phoenixing" -
0:05:24 > 0:05:30creating companies, then folding them before paying outstanding tax that was owed.
0:05:30 > 0:05:34And after closing one company, Maxwell would then start another,
0:05:34 > 0:05:38and this quickly made the taxman suspicious.
0:05:38 > 0:05:42Investigators asked Maxwell in to tell his side of the story.
0:05:42 > 0:05:45The trouble is, he didn't turn up at first.
0:05:45 > 0:05:49Without any co-operation from Mr Maxwell, we had little alternative
0:05:49 > 0:05:54but to raise estimated assessments, based on what we thought he earned during that period,
0:05:54 > 0:06:00and those assessments were issued accordingly in a sum getting on for £500,000.
0:06:01 > 0:06:04Let's check we heard that correctly.
0:06:05 > 0:06:07..getting on for £500,000.
0:06:08 > 0:06:10Yes, that's a hefty sum.
0:06:10 > 0:06:14But still the Revenue were more than happy to negotiate.
0:06:14 > 0:06:18Realistically, we didn't expect him to walk in with a cheque for £500,000.
0:06:18 > 0:06:21If somebody couldn't pay all the money up front,
0:06:21 > 0:06:27we would arrange for them to make a payment over a period of time, based on what they could afford.
0:06:27 > 0:06:31He did get in touch and agreed to attend a meeting,
0:06:31 > 0:06:37but at that meeting, he told us that his IT skills were out of date and he was struggling to get work.
0:06:37 > 0:06:43That wasn't perhaps unreasonable. The industry was very fast-moving in the late '90s, early 2000s.
0:06:43 > 0:06:45And that might have been the case.
0:06:45 > 0:06:48We examined the bank accounts he was operating.
0:06:48 > 0:06:53No income was coming into the bank accounts, so we accepted that explanation.
0:06:53 > 0:06:58A change in circumstances meant Maxwell couldn't afford to pay back what he owed.
0:06:58 > 0:07:01It all sounded pretty plausible.
0:07:01 > 0:07:04We wanted to reach a negotiated settlement
0:07:04 > 0:07:08by which he could pay the amount that he owed over a period of time,
0:07:08 > 0:07:12but if that couldn't be reached, he would have to be made bankrupt.
0:07:12 > 0:07:16Following that meeting, he didn't co-operate with us any more,
0:07:16 > 0:07:19he didn't turn up to any meetings or answer any correspondence.
0:07:19 > 0:07:24We had no alternative but to begin bankruptcy proceedings
0:07:24 > 0:07:27which would mean we could pursue his personal assets,
0:07:27 > 0:07:31and in 2002, Stephen Maxwell was made bankrupt by Inland Revenue.
0:07:35 > 0:07:42In an attempt to recoup some of the money lost, investigators looked at selling Maxwell's property.
0:07:42 > 0:07:47The problem was it was mortgaged to the hilt and there was no value left in it.
0:07:47 > 0:07:49The tax remained unpaid,
0:07:49 > 0:07:54and eventually, Maxwell just kind of slipped off the radar.
0:07:54 > 0:07:58So when we left Stephen Maxwell, he was bankrupt.
0:07:58 > 0:08:03His skills were obsolete. He couldn't carry on in the job he was pursuing.
0:08:03 > 0:08:07And that kind of seemed like a pretty miserable end for him.
0:08:07 > 0:08:10When does he crop up on the radar again?
0:08:10 > 0:08:14We were carrying out an investigation on another company,
0:08:14 > 0:08:18and this was probably three years later, 2005.
0:08:18 > 0:08:22While we were going through their records, we came across this name.
0:08:22 > 0:08:28One of the investigators thought, "That's a familiar name. Could it be the same person?"
0:08:28 > 0:08:33When we started looking, it turned out that, remarkably, it was him,
0:08:33 > 0:08:35and he turned up again working for somebody else.
0:08:35 > 0:08:38- So he was working?- He was working.
0:08:38 > 0:08:44He had set up an offshore bank account to have his wages paid into, in effect,
0:08:44 > 0:08:47to try to keep out of our radar,
0:08:47 > 0:08:49but he did turn up again.
0:08:49 > 0:08:53- What kind of work was he pursuing? - He was doing IT work again.
0:08:53 > 0:08:59So he was still an IT consultant, even though his skills were supposed to be obsolete.
0:08:59 > 0:09:04As a bankrupt, though, are you supposed to tell somebody when you're working?
0:09:04 > 0:09:09When you're a bankrupt, you're not in a position to set up your own companies and be a director.
0:09:09 > 0:09:15But he had set up this company. He hadn't got himself listed on any of the records for it.
0:09:15 > 0:09:19But all the money was then being pushed offshore,
0:09:19 > 0:09:24so he was playing around with the system to avoid us.
0:09:24 > 0:09:29And the deeper the investigators delved, the murkier it got.
0:09:29 > 0:09:34The case was passed along to me as a potential criminal investigation.
0:09:34 > 0:09:39He was living in a house in Scotland that was in the name of an Isle of Man company.
0:09:39 > 0:09:45Money that had been paid in respect of work that he had done had been paid
0:09:45 > 0:09:48into bank accounts in the name of offshore companies
0:09:48 > 0:09:51in the Isle of Man and in Cyprus as well.
0:09:51 > 0:09:56And it was also apparent that he hadn't made any tax returns during that period,
0:09:56 > 0:10:02so on the surface, it appeared that he was concealing his assets and his income from HMRC.
0:10:02 > 0:10:07Maxwell's tax bill was suspected to be a six-figure sum, but he was no fool.
0:10:07 > 0:10:10Would they be able to uncover the evidence to put the case to bed?
0:10:12 > 0:10:16What I was trying to prove was that Maxwell had defrauded HMRC.
0:10:20 > 0:10:25For now, it's farewell to the fraudsters and hello to the people we call our saints,
0:10:25 > 0:10:28those in society that help others in genuine need,
0:10:28 > 0:10:33but who are too proud or don't even know how to claim what is rightfully theirs.
0:10:36 > 0:10:40Wouldn't it be wonderful if our troubles came along one at a time,
0:10:40 > 0:10:43so we could pick them off individually and deal with them?
0:10:43 > 0:10:46Life doesn't work like that, unfortunately.
0:10:46 > 0:10:51When problems come in quick succession, it is very difficult to cope,
0:10:51 > 0:10:54not just financially but emotionally too.
0:10:56 > 0:10:59Meet Helen Fisher.
0:10:59 > 0:11:04In 1998, life was ticking along nicely - a successful teaching career, a young daughter
0:11:04 > 0:11:07and a husband, Ken, who worked in the motor industry.
0:11:07 > 0:11:11When I met Ken, it sounds corny, but it was love at first sight.
0:11:11 > 0:11:16We decided we wanted to be together. We just had a really lovely time.
0:11:16 > 0:11:20We found out I was expecting Jemma, which was really lovely.
0:11:20 > 0:11:22But life as they knew it was soon cut short.
0:11:22 > 0:11:27Ken fell ill, and after a period of steady decline, worse was to come.
0:11:27 > 0:11:31In March 2010, he passed away.
0:11:31 > 0:11:37And it wasn't long before Helen was staring down serious financial problems.
0:11:37 > 0:11:39They were stacking up fast.
0:11:40 > 0:11:44Because the child benefit was in his name, that stopped.
0:11:44 > 0:11:50His DLA stopped, his pension credits stopped, so that meant the interest on the mortgage stopped.
0:11:50 > 0:11:52The council tax benefit stopped.
0:11:52 > 0:11:54Literally, everything stopped.
0:11:57 > 0:11:59The heartbreak was made all the more difficult
0:11:59 > 0:12:05by the fact that the family had only just got back on track after years of tragedy and hardship.
0:12:07 > 0:12:12Life first started to unravel for the family back in 1998.
0:12:12 > 0:12:16Helen and Ken had taken two-year-old Jemma for a holiday to Portugal
0:12:16 > 0:12:18when Ken suffered a heart attack.
0:12:18 > 0:12:21Three out of the four arteries were blocked.
0:12:21 > 0:12:24It ended up being a quadruple heart bypass.
0:12:24 > 0:12:29Ken made a good recovery and opted for voluntary redundancy,
0:12:29 > 0:12:33which allowed them to move into a house that was better suited to his needs.
0:12:33 > 0:12:36That's when conditions started to deteriorate.
0:12:36 > 0:12:41One day, he rang me and he couldn't remember how to get in the house.
0:12:41 > 0:12:47Doctors diagnosed him with cardiovascular disease, which led to dementia.
0:12:47 > 0:12:52As things went from bad to worse, it was clear that life for Helen was never going to be the same again.
0:12:52 > 0:12:55Helen is the type to...
0:12:55 > 0:12:58Like I said, she doesn't want to appear as a failure.
0:12:58 > 0:13:02And Helen was trying to be everything for everybody.
0:13:02 > 0:13:07She wasn't asking for help. She was trying to manage.
0:13:07 > 0:13:12She thought it was down to her to be the one to sort everything out.
0:13:12 > 0:13:17For several years, Helen juggled Ken's care, her work and being a mum,
0:13:17 > 0:13:24but eventually, it became too much to cope with.
0:13:24 > 0:13:29Things came to a head. I was in Tesco's shopping and I literally collapsed.
0:13:29 > 0:13:33I didn't understand what was wrong with my mum,
0:13:33 > 0:13:37so I never knew she was suffering from depression
0:13:37 > 0:13:39and having a nervous breakdown.
0:13:39 > 0:13:45I just knew she was ill, but I knew it was because of my dad and the stress of looking after him.
0:13:45 > 0:13:48Juggling her care responsibilities made it impossible,
0:13:48 > 0:13:53so she quit work and applied for a £50-a-week carer's allowance.
0:13:53 > 0:13:58So I had gone from earning £35,000 a year
0:13:58 > 0:14:01to earning £2,000,
0:14:01 > 0:14:05so it's not rocket science that we weren't going to be able to pay the bills.
0:14:05 > 0:14:09The family were in a very difficult situation, but Helen then started to get advice.
0:14:09 > 0:14:14So I went on the internet and I typed in "benevolent funds".
0:14:14 > 0:14:19The website for Turn 2 Us came up and it said it had got a helpline number.
0:14:19 > 0:14:22So I rang them up and explained.
0:14:22 > 0:14:27She said she would send us out some leaflets for charitable organisations
0:14:27 > 0:14:30that may possibly be able to help.
0:14:30 > 0:14:34Turn 2 Us is a gateway organisation that helps find out
0:14:34 > 0:14:38what benefits people in difficulty could be eligible for.
0:14:38 > 0:14:45We've got experienced and skilled advisers who will go through the benefit check with an individual,
0:14:45 > 0:14:48identify what they're entitled to.
0:14:48 > 0:14:52They'll search the database of grant-giving organisations
0:14:52 > 0:14:56to find a grant which will meet their particular needs and circumstances.
0:14:56 > 0:15:02Because Ken had worked in the car industry, Helen set out to see if she could get support
0:15:02 > 0:15:06from a benevolent fund specifically established to help people in the motor trade.
0:15:08 > 0:15:12My initial instinct was this lady needs as much help as we can give
0:15:12 > 0:15:15in an emotional, physical and financial sense.
0:15:15 > 0:15:19It was just the kind of help that Helen had been desperately looking for.
0:15:19 > 0:15:24The benevolent fund even gave Helen some much-needed respite.
0:15:24 > 0:15:30BEN have a residential home in Southport and they had two rooms available for a short period.
0:15:30 > 0:15:34And she thought it would be nice if Ken would like to go there
0:15:34 > 0:15:39to give me some respite, so that I could have a little holiday with Jemma,
0:15:39 > 0:15:44so Ken went to stay there for a fortnight, and Jemma and I had a break.
0:15:49 > 0:15:53It was lovely to spend time with my mum, just my mum, because it was always the three of us,
0:15:53 > 0:15:55but it was also sad to miss my dad.
0:15:55 > 0:16:00My mum got to have freedom, so it was really nice to get away.
0:16:00 > 0:16:03Helen was really getting things back on track.
0:16:03 > 0:16:08She was getting proper help with her bills and proper support with housing advice,
0:16:08 > 0:16:12but just as things were looking up, they came tumbling down again
0:16:12 > 0:16:15as Ken passed away.
0:16:15 > 0:16:20All her finances stopped, and she had absolutely nothing,
0:16:20 > 0:16:25because when a spouse dies, you have to sort it all out.
0:16:25 > 0:16:33This time, Helen knew where to go - Turn 2 Us, whose advice had helped her family so much in the past.
0:16:33 > 0:16:398'When Helen got in touch with us the second time, we were sad to hear that Ken had died
0:16:39 > 0:16:42'and potentially her house was going to be repossessed.'
0:16:42 > 0:16:51We looked using the Turn 2 Us grants database to see what other charitable support we could provide
0:16:51 > 0:16:54for Helen in this really difficult situation.
0:16:54 > 0:17:00The organisation pointed Helen in the direction of a charity that's been providing teachers
0:17:00 > 0:17:05with counselling and advice since 1877.
0:17:05 > 0:17:11They suggested that I contacted the Teachers Support Network, because I was a former teacher.
0:17:11 > 0:17:15They came back to say that I would be able to access my teacher's pension.
0:17:15 > 0:17:21I took the lump sum to pay off the arrears. As a gesture, they sent me a cheque for £250.
0:17:21 > 0:17:27Goodwill gestures like this offered essential piece of mind.
0:17:27 > 0:17:32Once again, Helen was motivated to find further assistance,
0:17:32 > 0:17:36especially now that she knew how to ask.
0:17:36 > 0:17:43The Job Centre helped me fill in the form for the Bereavement Allowance.
0:17:43 > 0:17:46That helped with the funeral costs.
0:17:46 > 0:17:51And then the Benefits Maximisation team came back,
0:17:51 > 0:17:55and he said, "You're entitled to a Widowed Parents Allowance,
0:17:55 > 0:18:00"because your husband's paid 32 years of National Insurance."
0:18:00 > 0:18:07So I get a Widowed Parents Allowance while Jemma's in full-time education.
0:18:07 > 0:18:13Now Helen's putting her hard-won experience to good use, helping others at difficult times.
0:18:13 > 0:18:20After all the trouble that I'd had, trying to work my way through the benefits system,
0:18:20 > 0:18:25care entitlements, somebody suggested to me that perhaps I might like to go and volunteer
0:18:25 > 0:18:28for the Citizens Advice Bureau.
0:18:28 > 0:18:32I got involved doing the general advice training.
0:18:32 > 0:18:36It's so rewarding that I'm helping people.
0:18:36 > 0:18:43And if I can stop even ten people becoming so depressed like I was,
0:18:43 > 0:18:46then, you know, I think I've done a good job.
0:18:46 > 0:18:51Now she's helping other people, and you can tell she's so much happier.
0:18:51 > 0:18:55Because I've been there, seen it, worn the T-shirt,
0:18:55 > 0:19:00I can support people better, because I understand where they come from.
0:19:00 > 0:19:02SHE LAUGHS
0:19:07 > 0:19:12But now let's leave out saints and return to the devious world of the scrounger.
0:19:12 > 0:19:17In 2002, HMRC had bankrupted Stephen Maxwell
0:19:17 > 0:19:19for not paying his tax bills,
0:19:19 > 0:19:24but ten years later, he was back in their sights.
0:19:24 > 0:19:30To some, Stephen Maxwell was a hero who'd rescued passengers from a train crash in Cumbria.
0:19:30 > 0:19:34But to tax investigators, he was now suspected
0:19:34 > 0:19:37of getting up to his old tax-avoiding tricks,
0:19:37 > 0:19:42this time putting undeclared money in offshore accounts,
0:19:42 > 0:19:46all while HMRC still thought he was unemployed and bankrupt.
0:19:46 > 0:19:52Tax fraud investigator Paul Rooney was given the task of picking through the evidence.
0:19:52 > 0:19:57Once the investigation began, it was also a case of being sure he wasn't paying tax.
0:19:57 > 0:19:59That was quickly established.
0:19:59 > 0:20:06Paul examined the paper trail and saw Maxwell had worked as an IT consultant
0:20:06 > 0:20:09for several prestigious banks.
0:20:09 > 0:20:12I went to see the banks Maxwell had apparently worked with.
0:20:12 > 0:20:17They supplied details of how much they'd paid for the work he'd done.
0:20:17 > 0:20:22Paul found that Maxwell had had his wages paid into two offshore company accounts,
0:20:22 > 0:20:29one registered in Gibraltar with bank accounts in Cyprus and another set up in the Isle of Man.
0:20:29 > 0:20:35The first thing to do was to carry out checks on those companies, and it quickly became apparent
0:20:35 > 0:20:39that Maxwell was neither a director nor a shareholder of either company.
0:20:39 > 0:20:43This was strange. If Maxwell wasn't a director,
0:20:43 > 0:20:49why was he having his wages paid to them? The investigators dug deeper.
0:20:49 > 0:20:53When we got the documentation back from the offshore bank accounts,
0:20:53 > 0:20:59one account was in respect of the mortgage that was held on the property he lived in.
0:20:59 > 0:21:04Other documentation showed that his signature was on documents and cheque stubs
0:21:04 > 0:21:10and also much of the expenditure that we identified in the account related to the house
0:21:10 > 0:21:15and also predominantly was going on in the area where he lived.
0:21:15 > 0:21:21Yes, so where was he living? He's supposedly bankrupt, so it's not going to be anywhere fancy.
0:21:21 > 0:21:27- Is it?- It appeared that he was living in a very large country house in Scotland.
0:21:27 > 0:21:32He was driving a Porsche. Indications were that he was living with his wife,
0:21:32 > 0:21:38and we appeared to establish that he was still earning very high amounts.
0:21:38 > 0:21:44When we looked at Stephen Maxwell's current situation, he did have a UK bank account
0:21:44 > 0:21:49that was held locally in Castle Douglas, but there was little or nothing going into it
0:21:49 > 0:21:52and he had no assets or income.
0:21:52 > 0:21:56So he was living the high life, but his UK bank account was empty.
0:21:56 > 0:21:58Again, highly suspicious.
0:21:58 > 0:22:02By now, the offshore companies were giving up their secrets.
0:22:02 > 0:22:06It was discovered the first account was set up in 1999.
0:22:06 > 0:22:11That was when Maxwell claimed he couldn't pay his tax, because work was drying up.
0:22:11 > 0:22:19In fact, at the time, up to £20,000 a week was being diverted into the account.
0:22:19 > 0:22:26When I examined the bank statements, I established that during the period 1999-2008,
0:22:26 > 0:22:34he'd earned almost £2 million in that period and tax due was something in the region of £675,000.
0:22:35 > 0:22:41Remember, we're talking here about someone who, according to the taxman, was not only unemployed
0:22:41 > 0:22:43but bankrupt too.
0:22:43 > 0:22:48What kind of lifestyle was being paid for with this money?
0:22:48 > 0:22:54- With £2 million, he had a lovely lifestyle.- But none of that was really his. It was the company.
0:22:54 > 0:22:58- Yeah. And he wasn't paying any tax on it.- OK.
0:22:58 > 0:23:03So he's come back into your sights. How do you proceed with that?
0:23:03 > 0:23:08We then started to unravel. He tried to make it as complicated as possible,
0:23:08 > 0:23:15but once we sit down, we've got people who are trained to go through all the invoices.
0:23:15 > 0:23:20We started to follow the chain and worked out who he was, where he was.
0:23:20 > 0:23:24With the investigation gathering speed, the case took another twist.
0:23:24 > 0:23:27HMRC took a call from National Rail
0:23:27 > 0:23:32making inquiries about Stephen Maxwell, the rail crash hero.
0:23:32 > 0:23:39Network Rail notified me that Mr Maxwell was pursuing a compensation claim for loss of earnings.
0:23:39 > 0:23:45They were seeking to verify the amounts of income he'd told them he'd earned prior to the crash.
0:23:45 > 0:23:48But, of course, on paper, as far as HMRC was concerned,
0:23:48 > 0:23:51Maxwell hadn't been earning anything,
0:23:51 > 0:23:54so here he was making a false claim for compensation.
0:23:54 > 0:23:57It was time to bring him in for questioning.
0:23:57 > 0:24:03On the day of the search, 30th July, 2008, when HMRC officers turned up to serve the search warrant
0:24:03 > 0:24:05and carry out the search,
0:24:05 > 0:24:09Mr Maxwell wasn't present on the premises,
0:24:09 > 0:24:13but by telephone, he agreed to attend a local police station
0:24:13 > 0:24:15for an interview under caution.
0:24:15 > 0:24:20During the search of his house, several computers were uplifted
0:24:20 > 0:24:22and later proved to be very useful,
0:24:22 > 0:24:26because the documents we found included lots of invoices
0:24:26 > 0:24:32in the name of the offshore companies, and we also found statements for the Cyprus account.
0:24:32 > 0:24:36This solid evidence allowed the investigators to answer
0:24:36 > 0:24:39the question that had been bugging them.
0:24:39 > 0:24:45Why wasn't Maxwell named as a director or shareholder of the offshore companies?
0:24:45 > 0:24:51One of the next steps was to establish that he had indeed had them set up on his behalf,
0:24:51 > 0:24:56so it was a question of contacting the directors of those companies,
0:24:56 > 0:25:00and they were able to tell me that that was exactly what happened.
0:25:00 > 0:25:03He'd paid those people to set up offshore companies.
0:25:03 > 0:25:06When I interviewed Mr Maxwell, he was very shocked.
0:25:06 > 0:25:09He had no idea he was under investigation.
0:25:09 > 0:25:12He appeared nervous throughout the interview.
0:25:12 > 0:25:18He did answer some questions, but when it came to questions regarding the offshore companies,
0:25:18 > 0:25:21he refused to answer those questions.
0:25:21 > 0:25:25Ultimately, he was charged with forming a fraudulent scheme to avoid income tax.
0:25:25 > 0:25:28And when it came to his day in a Scottish court,
0:25:28 > 0:25:31Maxwell continued to plead his innocence.
0:25:31 > 0:25:38The trial started in March, 2012, in Kirkcudbright Sheriff Court in front of a jury,
0:25:38 > 0:25:43and there were many witnesses called including many bank officials
0:25:43 > 0:25:47and people that Maxwell had worked with in the past.
0:25:47 > 0:25:52The jury heard that Maxwell had earned up to £800 a day
0:25:52 > 0:25:54in some contracts.
0:25:54 > 0:25:57The Sheriff commented that it was clear
0:25:57 > 0:26:00that Maxwell benefited from the fraud
0:26:00 > 0:26:02and he was its driving force.
0:26:02 > 0:26:05But there was only ever going to be one outcome.
0:26:05 > 0:26:08At the end of the trial, the jury found Mr Maxwell guilty
0:26:08 > 0:26:11of forming a fraudulent scheme
0:26:11 > 0:26:14and he was sentenced to five years.
0:26:18 > 0:26:20In his summing up, the Sheriff said
0:26:20 > 0:26:23he didn't find Maxwell's evidence to be credible
0:26:23 > 0:26:27and he also was disappointed by his conduct during the trial
0:26:27 > 0:26:30in not agreeing to evidence being accepted in the court.
0:26:30 > 0:26:34So Maxwell got the justice that he deserved,
0:26:34 > 0:26:38but what about all the money he owed to the public purse?
0:26:38 > 0:26:42At the moment, confiscation proceedings are in progress
0:26:42 > 0:26:45with a view to securing some of the money that Maxwell owes.
0:26:45 > 0:26:51His house is up for sale. We'll try to recover as much as we can out of that sale for HMRC.
0:26:51 > 0:26:56Maxwell tried to hide his money overseas. It just goes to show,
0:26:56 > 0:27:02no matter how hard you try, your crimes always end up back at your front door.