The Swindling Solicitor and the Man Who Helped Me Walk Saints and Scroungers


The Swindling Solicitor and the Man Who Helped Me Walk

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Theft of public money costs the UK taxpayer over £20 billion a year.

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This is the worst kind of theft I've come across in 40 years.

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This is money which should be going into the public pot

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to spend on essential services.

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It could be used to build new hospitals and schools.

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And there are specially trained investigators making sure

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that justice is served.

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That money will be recovered. But it is a massive loss.

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In this series we meet the men and women across the UK committed

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to catching criminals who steal from you and me, the British taxpayer.

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No, I'm Kylie!

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But we also hear the stories of people who genuinely need

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assistance from public money.

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Put this round you.

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I look after Pete the way I do because I know

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if the boot was on the other foot he would do exactly the same for me.

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And sometimes they don't even realise they are entitled to it.

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There are places for everyone with mental illness.

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It's just a matter of finding the right place.

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Coming up - a crooked lawyer leaves his clients

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with thousands of pounds of tax debt.

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He was breaking the law.

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He looks like a very legitimate, very well-doing businessman,

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but really his business was founded on this scam.

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A well-heeled housewife claims to be a single mum

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to fund a champagne lifestyle.

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She spent something like £2,500 in the bar,

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on spas, on beauty treatments.

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And a disabled man raises £22,000 to fund a life-changing operation...

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Take a step and grab my hand.

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..and then simply gives it all away.

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No way. This can't be right.

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This is such an amazing amount of money

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that...we could never ever have hoped for.

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They say there are two things you can depend on in life,

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death and taxes.

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Taxes are essential for everything, from the roads

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we drive on to the hospitals that treat us.

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So, when someone claims to be able to slash those taxes

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in half for you, you should tread carefully.

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Because if they're not completely on the level, then it's your door

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that Her Majesty's tax collectors will come knocking on.

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The simple fact is, the tax is due and it's your responsibility

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to make sure that you're paying the right amount of tax.

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In 2007, house prices in the north-east of England were dropping.

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But one firm of property solicitors was doing very well for itself.

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SFM Legal Services, based in Gateshead,

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was run by dad-of-four Malcolm Graham.

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They were boasting a turnover of £4 million

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and predicting those numbers would double within 18 months.

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So why were they so popular?

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They were claiming to make the cost of buying a house much cheaper

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by promising to cut stamp duty due to the HMRC at the point of sale.

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He was holding seminars explaining how great his business was

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and he could save you this

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and he could save you that and the other.

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He was taking adverts in national newspapers saying,

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"We can save you money on your stamp duty."

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Her Majesty's Revenue and Customs is represented by Clare Merrills.

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It's Criminal Taxes Unit roots out the criminals who evade tax

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and they take stamp duty fraud extremely seriously.

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What I understand from stamp duty, because I've paid it once or twice,

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is that it's a levy that goes on top of whatever you pay for a house.

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Yeah, that's right.

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So, depending on the price of the house,

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it will determine the rate of stamp duty that you pay.

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Stamp duty cuts in at at £150,000,

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so any houses that cost less than £150,000 you don't pay anything on.

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But from 150,000 up to two million and over,

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there are different rates of stamp duty that you have to pay.

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It's a fairly painful tax.

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And the reason it is because you've got so many expenses

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when you're buying a house and then suddenly you've got a big

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chunk of money going out that you've got to find from somewhere.

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You can see why some people might be trying to work out ways to avoid it.

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Indeed. Because as you say, you've negotiated your new mortgage,

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you're paying for this, you're paying for that, removals,

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and then you get the bill for the stamp duty as well.

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And people may think,

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"If we just negotiate this and if we don't include that

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"in the cost price of the house, can we reduce the amount we have to pay?"

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Well, quite simply, the price that you're paying for the house is the price that you

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pay stamp duty on, and if you do start to manipulate figures

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we find out and we'll come back to you and it's not very nice at all.

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Now, tax avoidance, unlike tax evasion, is not illegal.

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And Malcolm Graham was a self-proclaimed expert

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on avoiding stamp duty.

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A lot of people think, "Oh, this is great.

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"I can save money and legitimately save money, because he's

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"advertising in a national newspaper - it must be legitimate."

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And on the surface, Graham's firm was respectable.

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Then, in March 2009, Northumbria Police were investigating

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a mortgage fraud in which Graham was the client's solicitor.

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He was cleared of any wrongdoing.

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However, this flagged up some anomalies which they passed

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on to HMRC.

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We launched our investigation.

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We have a special unit called the Criminal Taxes Unit

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that deals with this type of investigation.

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They started looking at it and then they started to piece

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everything together to see exactly what had been happening.

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What was he trying to do?

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What he was doing was offering people the opportunity to cut

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the amount of stamp duty that they would pay.

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He was looking at properties that were worth half a million or more.

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So the amount of stamp duty payable on those were quite significant sums.

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What he was saying was, "If you come to me and I can get you

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"your stamp duty a lot less than you actually have to pay.

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"What I save you, you give me half as my fee."

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And that was how he was running his business.

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We are talking about thousands or tens of thousands of pounds

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-that he could possibly be saving people.

-Yeah.

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But in fact he wasn't saving them at all, because it was all a fraud.

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So in the short term, his customers think, "Brilliant!

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"I've made this saving. I'm quite happy to hand over the fee

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"to Malcolm Graham." What happens after that?

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Well, after that, once we discovered what was going on,

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we started going back over all his transactions

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and realised that actually people hadn't paid as much as they should

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have done, and then we go and say, "You should have paid us £10,000.

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"You've only paid us £5,000." They go, "No, because I used this scheme

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"and this was legitimate and I paid you what I was due."

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At which point it all starts to unravel.

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And then they have to pay the extra £5,000.

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While HMRC was chasing Graham's clients for outstanding taxes...

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..another group of investigators was chasing Graham himself -

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the Solicitors Regulation Authority.

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Gordon Ramsay and his team are there to protect us

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from rogue solicitors.

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We look at the behaviour and the conduct of solicitors,

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making sure they are treating consumers properly,

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and if there's any misbehaviour we take action to regulate that.

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Solicitors Regulation Authority.

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The Solicitors Regulation Authority is about protecting clients,

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and they were worried that Graham's payment structure

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would leave them vulnerable.

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He was creating this scheme which meant that you could avoid

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paying tax due on your house purchase,

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and he was taking a fee on the amount he claimed he would be saving you.

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The no-win-no-fee payment structure might have appealed to clients,

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but what they didn't realise is that there was no provision

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for reimbursing them if the HMRC did come knocking.

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The Solicitors Regulation Authority contacted Malcolm Graham

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to ask him about his schemes.

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Mr Graham wasn't particularly helpful in his responses,

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so we sent our trained investigators out to interview

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and go through the books and the accounts of the firm.

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And what they found caused them considerable concern.

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He operated a number of tax avoidance schemes,

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one of which was the stamp duty land tax avoidance scheme.

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When dealing with a property purchase,

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he would artificially structure the deal

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so that one party would buy 90% and the other party 10%,

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but he would only declare to the Inland Revenue, HMRC,

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the smaller 10% of the deal.

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He was misleading clients

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and mortgage holders on the purchase price and the revenue,

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so a £400,000 house he would sell to a husband and wife, possibly,

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and the husband would buy for 350,000,

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the wife would buy for 50,000,

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it would only be the 50,000 sale that would be declared to the Revenue.

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The investigation ramped up a notch when Graham tried to prove

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that another tax avoidance scheme was legit.

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Mr Graham provided to us a letter supporting his claim

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that his capital gains tax avoidance scheme had been approved by HMRC.

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HMRC were able to confirm to us that not only was this letter

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fabricated, they wouldn't ever approve such a scheme.

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Now, having the proof that Graham was not using

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an HMRC verified scheme for capital gains tax,

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and suspecting the same to be true for his stamp duty avoidance,

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the SRA was closing in on him.

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Graham was on the verge of losing his right to practise.

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And with debts of 0.5 million to the public purse and clients

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demanding to be reimbursed their fees, Graham liquidated his company.

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Later, will Graham's story stand up when investigators ask him

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to tell it to the courts this time?

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Some people do everything they can to avoid paying tax, thinking

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that if they don't ask for anything they shouldn't have to contribute.

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Sometimes things happen in life that are out of our control

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and that's when we realise that whether it's from family, friends

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or financial help from the state, sometimes we all need a bit of help.

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Dan Black was a lad in his 20s who didn't need to rely on anyone.

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He had a band locally doing so well.

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They were so well known around here.

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They played gigs up in London, they played a festival in Spain.

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I managed them and it was great, it was lovely,

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because we all got on so well together.

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And he was such a fantastic bass player.

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Dan had just made a big decision about his future

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and was working hard towards it.

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Spent a lot of time going to the gym

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and cycling around and playing my guitar.

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Then I decided to do something completely different

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and join the Army.

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When I told my mum I wanted to join the Army she was a bit,

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"OK, whatever." She didn't really believe me and then

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a couple of days later I said, "Oh, mum, I've signed up for the Army."

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He'd made his mind up

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and then started to focus on the keeping fit side of it.

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He really wanted to make sure that he was ready to go in there.

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But one morning something happens which was to

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change Dan's life for ever.

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My morning routine originally was get up about six, shower,

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have breakfast, watch the news for a bit and then drive to work.

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And after I decided to join the Army I knew I needed to get fit,

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so I scrapped the car, well, took it off the road

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and then cycled everywhere.

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Cycled to the gym, cycled to my girlfriends, cycled to work.

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Dan always left for work at the same time every single morning.

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This one day he was early.

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He was never early for work, he was always late. Always got away with it.

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That morning I was...

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..a bit earlier than normal.

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Just the way it worked out.

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A car appeared in front of Dan as he cycled down the road.

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SCREECH OF TYRES FOLLOWED BY CRASH

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They collided and he was thrown from his bike,

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hitting the tarmac at high speed.

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I remember all of the accident apart from...from the actual impact.

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And then I don't know what I remember.

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I felt like I fell asleep.

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In a split second every single thing that he wanted to do

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through his life was just taken away from him.

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When we got to the accident he was on the floor.

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I went in the ambulance with him to the hospital

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and the ambulance driver had drawn a pen across his chest

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to say that he couldn't feel below that.

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And then while we were in the hospital he started to...

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..he started to say that he...

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Sorry. He said that he couldn't feel parts of his legs and I just knew.

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And then his face dropped, and I kept saying to them,

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"There's something wrong with his face.

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"Why has his face dropped?" And he kept saying, "I love you, Mum."

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And he never tells me he loves me, so I knew something was going on.

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Dan was rushed back into surgery.

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A constricted artery in his neck had caused a blood clot,

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leading to a massive stroke.

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If only they'd have known at the start,

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they could have possibly dealt with the stroke, but we didn't know.

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They put him straight into an induced coma

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and he was there for six weeks.

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And then I was just... I lived there.

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To be honest with you, it's one of those where I was at the hospital,

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but to sit around his bed was just awful.

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As the days and weeks passed,

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Dan's family slowly learned about the full extent of his injuries.

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He had a collapsed lung, a crushed kidney and a ruptured spleen.

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He also had permanent brain damage.

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His spine had been shattered on impact

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and he'd broken 19 bones, one of which had crushed his spinal cord.

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I kept saying, "Please don't, don't wake him up."

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I don't want to tell him he's never going to walk again. How do you tell him?

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How do you tell him he's never going to actually be able to join the Army,

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he's not going to play his guitar any more?

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The day that they were fearing came too soon.

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It was time to wake him from his coma.

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Well, when I woke up, I had my, my mum, my dad, a doctor,

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my best friend and my girlfriend

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around the bed and the doctor started describing my injuries to me.

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It was all pretty devastating, I suppose you could say.

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It slowly started to hit me, like, oh, I can't move my legs.

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I can't even feel my feet being tickled, can't move my arm.

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The doctor...

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..sort of skirted around the idea,

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but basically told me, oh, you're never going to walk again,

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your injuries are too severe to be repaired.

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And I'm sat there and I'm crying, because I'm...

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The doctor's telling him and he passed me a tissue.

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SHE GASPS It's like, Daniel, it's YOU that should be crying.

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And he passed me the tissue.

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I'll never forget that.

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Far from being over, though,

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the real struggle for Dan and his family was just beginning.

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Home at last after months in hospital,

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he then had to get used to life in a wheelchair.

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Because I was right-handed before my accident, I've now lost my right arm.

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So, well, it's still there, but no, I can't use it.

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So I've basically had to get used to everything again.

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So, eating, going to the toilet, getting dressed,

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everything is completely different.

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And it wasn't just Dan's life that had changed.

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Parents Michaela and Rick had to give up work

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and they saw their lives pulled apart.

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I didn't think about how our lives would change at all.

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They changed in respect of, I've lost my job.

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My husband lost his job, you know, we had the car taken off us,

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so we had nothing, we had no money coming in.

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We were lending money off so many people.

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Because we just had no other way of paying bills.

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The family was forced to leave their beloved village of Mathern,

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childhood home of mum Michaela,

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to live in a wheelchair accessible new build six miles away.

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This doesn't feel like a home.

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Not to Daniel, not to me and not to Rick.

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It's just a house.

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I think it's because our home is back in Mathern, but it's gone.

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Dan's now coping with depression on top of his physical injuries.

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Always puts on a brave face.

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You speak to him, you think that he's fine,

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that everything's fine, but as his mum,

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I just know that what's going on inside,

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and what he's feeling deep down is completely different.

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'I've got no choice.'

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It's not bravery, it's down to, what else can I do?

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With Dan and the family struggling with their difficult situation,

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they began to research ways in which his life could improve.

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We had folders full, where people, including ourselves had printed off,

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so we knew that these things were happening.

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They were looking at experimental treatments

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that might restore the use of Dan's legs.

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'This one man was taking samples from the person's own nose'

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and putting them into, the spinal-cord

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and it's been quite promising, they were getting rats to walk quite easily.

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We were just preparing ourselves, ready for it,

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because the minute there's any form of a trial, Daniel wants to be on it.

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He wants to trial anything at all with regards to stem cell.

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Some people don't agree with stem cell,

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but when you're in the situation we're in, it's our only hope.

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Experimental treatments are not available on the NHS

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and mostly happen in the United States.

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The family quickly realised

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that should an operation become available,

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they'd have to fund it themselves.

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However, the community rallied round them,

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with mum's best friend, Tracey, leading the way.

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She raised the money, she organised an auction in the village.

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She really got the village together

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and everybody in Mathern and the surrounding area were so generous.

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They all donated money.

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They did fun days, they did, you know,

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charity walks across the Severn Bridge.

0:19:520:19:54

The auction in our local village raised thousands

0:19:540:19:58

and it's a small village, it's a tiny village.

0:19:580:20:00

Everybody came together for Daniel, everybody.

0:20:000:20:03

And Tracey organised it all.

0:20:030:20:06

It was hard work, but they did it.

0:20:060:20:08

After four years, they'd raised £20,000.

0:20:080:20:12

Dan's improved life was beginning to look like a possibility.

0:20:140:20:17

All they had to do was wait for the science to catch up.

0:20:170:20:21

But meanwhile, just six miles away, a little boy was growing up.

0:20:220:20:26

Later we find out how his fate

0:20:270:20:29

was going to become inextricably linked with Daniel's.

0:20:290:20:33

At the end of the day, he's six and he just wants to walk

0:20:330:20:37

and be like everybody else.

0:20:370:20:39

Britain's not a country to let those in need fend for themselves.

0:20:460:20:50

We have a proud tradition of caring for the sick and elderly

0:20:510:20:56

and giving a helping hand to those that have fallen on hard times.

0:20:560:21:00

A single mum struggling to raise children on her own

0:21:010:21:04

is one such vulnerable member of society,

0:21:040:21:07

needing an extra bit of help

0:21:070:21:09

to meet the bills without a husband or partner to provide.

0:21:090:21:14

CREAKING

0:21:140:21:16

That's just what the system's designed to do.

0:21:160:21:19

It's not designed to provide people with exotic holidays,

0:21:190:21:23

whether they're a single mum or not.

0:21:230:21:25

Dispensing it like, £2,500 in the bar, on spas,

0:21:270:21:32

on beauty treatments and all this money was meant to help people

0:21:320:21:36

who are the most vulnerable people in our society.

0:21:360:21:39

Hot on the trail of the people who abuse the system

0:21:390:21:42

are the counter fraud investigators from the DWP.

0:21:420:21:46

Following strict guidelines from the Regulation Of Investigatory Powers Act,

0:21:460:21:50

these surveillance experts stop at nothing

0:21:500:21:53

to claw back taxpayer's money and bring fraudsters to justice.

0:21:530:21:57

Their lead investigator in Liverpool is Steve Snead.

0:21:590:22:02

Benefits is meant for people who, through no fault of their own,

0:22:040:22:07

find themselves in financial difficulty.

0:22:070:22:09

It is not there to subsidise a very lavish lifestyle.

0:22:090:22:14

On the surface, Victoria Tracey was a hard-up single mum of two.

0:22:150:22:20

She first made a claim to benefits in 2008.

0:22:210:22:24

She stated that she was single, lived on her own with her children

0:22:240:22:28

and that she was renting a house from a Mr Andrew Kenny,

0:22:280:22:32

whom she described as "her landlord".

0:22:320:22:34

On submitting claim forms, Victoria Tracey was awarded benefits

0:22:370:22:40

to help her pay rent to her landlord,

0:22:400:22:43

and this continued for four years,

0:22:430:22:45

until the department received a tip-off in November 2012.

0:22:450:22:49

We received an allegation, which said that her landlord was in fact

0:22:520:22:56

her partner, and they were living together as man and wife.

0:22:560:22:59

It was time to hit the streets and do some surveillance.

0:23:010:23:04

We need to establish a significant pattern of movements

0:23:080:23:13

of Miss Tracey and of Mr Kenny.

0:23:130:23:16

We were aware that he could come along and say to us,

0:23:160:23:18

"I stayed the odd night,"

0:23:180:23:19

or, "It was a matter of convenience - I couldn't get home."

0:23:190:23:22

We need to establish the fact that he was there on a regular basis,

0:23:220:23:25

and actually is having a lifestyle with Miss Tracey that would be

0:23:250:23:29

commensurate with a couple in a relationship.

0:23:290:23:32

Steve Snead and the team started their visual surveillance

0:23:330:23:37

and wrote up their findings.

0:23:370:23:38

CAMERA CLICKS

0:23:400:23:42

We do receive a lot of allegations that people are living

0:23:420:23:45

together with a partner when they claim to be single.

0:23:450:23:48

Obviously from a financial point of view, there's a lot of incentive.

0:23:480:23:52

We found that Mr Kenny was in fact not Miss Tracey's landlord,

0:23:520:23:56

but was in fact her partner

0:23:560:23:58

and that they were living together in her house.

0:23:580:24:01

And the team dug a little bit deeper to see how Tracey

0:24:010:24:05

and Kenny were operating financially.

0:24:050:24:07

We have certain powers which enable us

0:24:100:24:12

to gain certain information from financial institutions,

0:24:120:24:15

but also, we made checks -

0:24:150:24:17

we conducted surveillance to ascertain the person's true circumstances,

0:24:170:24:21

we also made a number of enquiries to third parties and

0:24:210:24:24

bit by bit the investigator was able to paint a picture, which painted

0:24:240:24:28

a completely different portrait of this lady and her circumstances.

0:24:280:24:32

In the course of the investigation,

0:24:380:24:40

Steve and his team contacted a mortgage company,

0:24:400:24:42

insurance companies and the DVLA,

0:24:420:24:45

all of whom corroborated that Andrew Kenny was

0:24:450:24:48

listed at the same address as Victoria Tracey,

0:24:480:24:52

and they were living together as partners.

0:24:520:24:55

But even more outrageous evidence was about to emerge.

0:24:550:24:58

Victoria Tracey was not only able to run a cabriolet car with

0:25:000:25:04

a personalised number plate,

0:25:040:25:06

but she and Mr Kenny had numerous holidays abroad,

0:25:060:25:09

including cruises on Royal Caribbean lines,

0:25:090:25:12

which they paid £6,000 each,

0:25:120:25:15

plus while they were away, they spent something like £2,500 in the bar,

0:25:150:25:21

in spas, on beauty treatments.

0:25:210:25:23

And all this money was meant to help people who are the most

0:25:230:25:27

vulnerable people in our society.

0:25:270:25:28

With Victoria Tracey living a life more akin to

0:25:310:25:33

Footballers' Wives than a single mum on the poverty line,

0:25:330:25:36

Kenny was still claiming to be her landlord.

0:25:360:25:39

They invited them both in for interview under caution.

0:25:400:25:43

He was interviewed initially and he actually denied that the

0:25:450:25:48

children were is children - he was quite strong in that conviction.

0:25:480:25:52

It was only when the investigator pointed that on his arm, he had

0:25:540:25:57

the names and dates of birth of the children tattooed,

0:25:570:26:01

that he eventually admitted the fact that he was their father.

0:26:010:26:04

Busted!

0:26:040:26:06

After that, Victoria Tracey had little option but to come clean too.

0:26:080:26:12

She'd been living it up at the taxpayers' expense.

0:26:130:26:18

When this matter came before the Crown Court,

0:26:180:26:20

the amount involved was over £85,000.

0:26:200:26:24

On 20th of January 2014,

0:26:260:26:28

the couple pleaded guilty at Liverpool Crown Court.

0:26:280:26:32

Despite their two children,

0:26:340:26:35

they faced a prison sentence of up to ten years each.

0:26:350:26:39

Victoria Tracey and Andrew Kenny

0:26:410:26:43

appeared in Liverpool Crown Court in 2014.

0:26:430:26:46

Both were sentenced to nine months in prison, with immediate effect.

0:26:460:26:50

In passing sentence, the judge said he took into account

0:26:500:26:53

the fact that they had dependent children,

0:26:530:26:56

but the amount of money was such that only an immediate custodial

0:26:560:26:59

sentence was merited.

0:26:590:27:02

Behind bars, and it's not over yet - the DWP won't rest

0:27:040:27:08

until they're recovered all the taxpayers' money.

0:27:080:27:11

We are seeking to recover every penny of this,

0:27:130:27:15

and will pursue Miss Tracey and Mr Kenny

0:27:150:27:18

until we have all the money back.

0:27:180:27:20

Back in Tyneside, Malcolm Graham's firm, SFM Legal Services,

0:27:260:27:31

had been operating a highly dubious tax avoidance scheme,

0:27:310:27:35

which had left many of his clients out of pocket to the HMRC.

0:27:350:27:38

When the company folded, a third agency had to

0:27:420:27:45

step in to find the money - The Insolvency Service.

0:27:450:27:48

Their chief investigator in Tyneside is Anthea Simpson,

0:27:500:27:53

who had to face some very disgruntled property investors.

0:27:530:27:57

Creditors with sums totalling in excess of £500,000,

0:27:580:28:04

made claims to the liquidator in relation to fees which they

0:28:040:28:09

were attempting to recover from SFM.

0:28:090:28:13

Given that he owed so much money,

0:28:130:28:15

you would have thought that Mr Graham would have been skint,

0:28:150:28:18

but you would have thought wrong.

0:28:180:28:21

Investigations showed he'd been taking quite a few pay packets home.

0:28:210:28:26

Mr Graham received director's remuneration of approximately

0:28:260:28:29

£1.5 million,

0:28:290:28:31

and also received dividends from the company of in excess of £300,000.

0:28:310:28:37

So his firm collapsed owing over a million,

0:28:370:28:40

and Graham had taken over a million as it's director.

0:28:400:28:44

As a publicly-funded body,

0:28:440:28:46

The Insolvency Service has the power to investigate and take action.

0:28:460:28:51

A detailed analysis of the accounting records was carried out,

0:28:510:28:54

and the investigator then also contacted any other relevant

0:28:540:28:59

third parties in order to obtain the evidence whether or not

0:28:590:29:04

disqualification proceedings should be commenced

0:29:040:29:07

and what any allegations of misconduct that were made should be.

0:29:070:29:13

By now, the Solicitors Regulation Authority had taken

0:29:130:29:16

disciplinary action against Graham.

0:29:160:29:19

What we have here is the actual findings of the tribunal

0:29:190:29:24

and we had 16 findings of dishonesty against Mr Graham.

0:29:240:29:28

With overwhelming evidence,

0:29:290:29:30

the shamed solicitor had to face the music.

0:29:300:29:34

Mr Graham misled clients, he misled the mortgage providers,

0:29:340:29:39

he misled HMRC and in providing us with a fabricated letter,

0:29:390:29:44

he misled the regulator.

0:29:440:29:47

And in December 2009, the tribunal struck off Mr Graham,

0:29:470:29:51

and by striking him off,

0:29:510:29:52

he was no longer allowed to act as a solicitor.

0:29:520:29:55

He was also banned from acting as a company director for five years -

0:29:580:30:02

he'd lost his job and livelihood.

0:30:020:30:04

Meanwhile, HMRC was conducting a criminal

0:30:050:30:09

investigation into how he lured his clients in.

0:30:090:30:13

He claimed that he'd found a loophole

0:30:130:30:14

and he claimed he'd got this document from a top London

0:30:140:30:18

tax barrister, which claimed that this system that he was using

0:30:180:30:22

was all legitimate and it could save people money.

0:30:220:30:26

So the legitimacy of his stamp duty avoidance scheme all hinged on

0:30:260:30:30

one document - but where was it?

0:30:300:30:33

Not very many people saw the document - he kept that under lock

0:30:330:30:38

and key most of the time and nobody was allowed to get it out

0:30:380:30:41

and show other people.

0:30:410:30:42

But he was talking about the document,

0:30:420:30:44

"Oh, yes, yes, of course this is all legal and all above-board.

0:30:440:30:48

"I've got proof.

0:30:480:30:49

"I've been told by this top barrister in London that

0:30:490:30:52

"this is going to work - of course it'll be fine."

0:30:520:30:54

Using their powers to seize evidence,

0:30:570:30:59

The Criminal Taxes Unit eventually located this elusive

0:30:590:31:02

piece of paper that supposedly proved the legitimacy of his scheme.

0:31:020:31:08

In actual fact, the document didn't say that and it had been doctored.

0:31:080:31:12

He'd actually written to the tax advisor,

0:31:130:31:16

but the response hadn't been what he'd hoped.

0:31:160:31:19

Not being one to let a little thing like the law stop him,

0:31:190:31:22

he'd taken matters into his own hands.

0:31:220:31:25

This document was advising him it's not going to work.

0:31:250:31:28

It had then been changed to say it is going to work.

0:31:300:31:35

I mean, it was as simple as that.

0:31:350:31:37

It's very technical, but that's the change that he'd made.

0:31:370:31:40

So you've got a document here that's actually been doctored to

0:31:400:31:44

give the opposite meaning to what it should have said,

0:31:440:31:47

-and that's been used to convince people to take part.

-Yeah.

0:31:470:31:50

So people would think,

0:31:500:31:51

"This is great, I can save thousands of pounds here,

0:31:510:31:55

"thousands of pounds there - great."

0:31:550:31:57

And they were taken in by it.

0:31:570:31:58

So he'd tricked his own clients, cheated the Revenue out of over

0:31:580:32:02

a million in stamp duty taxes and distorted the property market.

0:32:020:32:06

Malcolm Graham was brought before Newcastle Crown Court

0:32:200:32:23

on the 30th November 2013.

0:32:230:32:26

He pleaded guilty to seven counts of fraud.

0:32:270:32:30

I think, the judge, because he had admitted,

0:32:300:32:33

gave him a sentence that was suspended,

0:32:330:32:36

rather than actually sending him to prison.

0:32:360:32:39

OK, so he stays out of prison...

0:32:390:32:41

The people that he's conned, the customers,

0:32:410:32:46

could you feel sympathy for them?

0:32:460:32:47

Cos they've tried to...

0:32:470:32:49

They've done what they think is legal...

0:32:490:32:51

Yeah, and they've put trust in him, and I think that's the thing.

0:32:510:32:54

So whilst, yes, I have some sympathy for people in the fact

0:32:540:32:57

they were conned,

0:32:570:32:58

the simple fact is the tax is due and it's your responsibility

0:32:580:33:02

to make sure you're paying the right amount of tax.

0:33:020:33:06

Do you have any idea how much money we're talking about,

0:33:060:33:09

that was being withheld from the public purse?

0:33:090:33:13

We reckon £1.6 million - that's what we took him to court on,

0:33:130:33:16

£1.6 million.

0:33:160:33:17

That was about 280 different transactions that he'd

0:33:170:33:21

carried out using this piece of paper that he'd doctored.

0:33:210:33:24

So these are big money transactions and there's a lot of them.

0:33:240:33:28

-Yes.

-So you end up with this huge sum - £1.6 million,

0:33:280:33:32

a lot you can do with that,

0:33:320:33:33

if you start thinking of hospitals, schools and the things that we need.

0:33:330:33:36

Yeah, mending the roads.

0:33:360:33:38

It is a lot of money to go towards all of that, yeah.

0:33:380:33:41

Malcolm Graham walked free on this occasion,

0:33:410:33:45

but with a further 11 years' disqualification from being

0:33:450:33:48

a company director,

0:33:480:33:49

he lost his credibility, his livelihood and his career.

0:33:490:33:53

How common is this?

0:33:540:33:55

How often do you come across stamp duty land tax fraud?

0:33:550:34:00

-Is it something everyone's trying?

-To be honest with you,

0:34:000:34:02

this was actually one of the first cases that we'd taken to prosecution,

0:34:020:34:06

because it was a large one.

0:34:060:34:09

People are always trying to find ways round it,

0:34:090:34:11

but it was a big fraud he was working on - 1.6 million -

0:34:110:34:15

it's a lot of money. We needed to pursue that.

0:34:150:34:18

Now from those who line their own pockets with public money to

0:34:200:34:24

those that need all the help they can get.

0:34:240:34:26

Brecon Vaughan was born in the same village as Dan Black

0:34:270:34:31

and, like him, was predicted a future in a wheelchair.

0:34:310:34:35

Brecon's family were told their son would never walk.

0:34:350:34:38

Brecon's a six-year-old lad who's had a lot to contend with.

0:34:410:34:46

He's the cheekiest, funniest lad - when I look at his face,

0:34:460:34:49

I just smile.

0:34:490:34:51

Brecon was born with both hips dislocated

0:34:520:34:55

and neurological damage to his brain.

0:34:550:34:58

But his parents had heard of an operation that could help him.

0:34:580:35:01

We had heard about an operation called SDR -

0:35:020:35:05

selective dorsal rhizotomy. Hadn't really looked into it much,

0:35:050:35:09

it was just something we'd heard about.

0:35:090:35:11

The more we looked into it,

0:35:110:35:12

the more we realised that that was going to be

0:35:120:35:15

an alternative for him that would

0:35:150:35:17

hopefully enable him to walk properly.

0:35:170:35:21

The procedure was based on the same science that Dan Black had

0:35:210:35:24

been researching, but unlike Dan,

0:35:240:35:26

six-year-old Brecon was considered

0:35:260:35:29

an ideal candidate for this sort of operation,

0:35:290:35:32

and it had to be carried out soon.

0:35:320:35:34

Had we left it, Brecon's tightness in his legs would only increase.

0:35:340:35:39

As he grew older, the likelihood was his legs would tighten up

0:35:390:35:43

and he'd actually become less mobile.

0:35:430:35:44

The problem was that the hospital carrying it out was in America

0:35:440:35:48

and they'd have to fund it themselves.

0:35:480:35:52

The ball park we had was around 60,000

0:35:520:35:54

but that wasn't only for the operation.

0:35:540:35:56

Although the operation is vitally important

0:35:560:36:00

the after-care is just as important.

0:36:000:36:02

We looked at all the different avenues of what we could do -

0:36:020:36:06

selling the house, remortgaging the house - whatever we had to do.

0:36:060:36:10

The family started to fundraise.

0:36:100:36:13

We did do really well -

0:36:130:36:14

within the first two months we'd raised £11,000, which was

0:36:140:36:19

friends and family and local donations and things like that,

0:36:190:36:23

but we knew we couldn't keep the momentum up.

0:36:230:36:26

It was getting harder and harder

0:36:260:36:27

and it did start to weigh quite heavy on your mind.

0:36:270:36:31

Where are you going to get this money?

0:36:310:36:33

What were we going to do?

0:36:330:36:35

Then Dan Black heard about his plight

0:36:350:36:38

and he wanted to make a difference.

0:36:380:36:41

If he could have raised cash constantly at the rate I did,

0:36:410:36:44

it would have taken him at least 12 years...

0:36:440:36:46

..to give him the money,

0:36:480:36:49

so that would have put him at late teens before he starts walking,

0:36:490:36:53

so he would have missed out entirely on his childhood...

0:36:530:36:56

which is quite sad.

0:36:560:36:58

Everyone deserves a childhood.

0:36:590:37:01

An idea began to form in Dan's mind -

0:37:010:37:03

one that would change his life and Brecon's for ever.

0:37:030:37:07

No reason for me to have the money cos there's no treatment for me,

0:37:070:37:10

whereas there is a treatment for him and all he needs is money.

0:37:100:37:14

So why should I be holding on to that money whilst it's not helping

0:37:140:37:17

anybody when it could help someone?

0:37:170:37:19

There was no time to waste - he called his parents into his room.

0:37:200:37:24

He said, "Mum, I'd rather just give him all the money - all of it."

0:37:240:37:28

I thought he would give him £1,000 or £2,000 , just to help him out.

0:37:280:37:31

He said, "No, he's never walked, Mum - I have,

0:37:310:37:36

"so he deserves it.

0:37:360:37:38

"He can have that operation now and by the time he's 16, 17,

0:37:380:37:43

"going out with the lads and meeting girls,

0:37:430:37:45

"he'll be able to walk.

0:37:450:37:46

"That's not going to happen for me,

0:37:460:37:48

"so he should have that money now so that he can walk."

0:37:480:37:52

Dan's mum, Michaela, was the one to call Brecon's parents Rob

0:37:540:37:57

and Anne, to break them the news.

0:37:570:38:00

We were blown away with the idea that we were going to move that

0:38:000:38:03

much closer to our goal.

0:38:030:38:05

Rob and I couldn't really take it in.

0:38:050:38:07

We just thought, "No way, this can't be right."

0:38:070:38:11

This Dan wants to give Brecon £20,000, such an amazing

0:38:110:38:16

amount of money that we could never, ever...

0:38:160:38:21

have hoped for.

0:38:210:38:22

And Dan's gesture wasn't just recognised by the Vaughans.

0:38:240:38:28

The news was picked up by the papers

0:38:280:38:30

and the media attention led to a surge in donations.

0:38:300:38:33

I was driving to work and my phone started going, I was getting texts.

0:38:350:38:38

By the time I got to work,

0:38:380:38:40

people I work with were saying, "You ain't going to believe this."

0:38:400:38:43

And they were just watching Brecon's JustGiving page going up

0:38:430:38:47

and up and it was just phenomenal.

0:38:470:38:50

By the end of... That was a Friday -

0:38:500:38:52

I think by the end of the Saturday night we'd made the target.

0:38:520:38:56

I didn't think it would make that much difference cos it was

0:38:580:39:01

only about a third of what they needed.

0:39:010:39:03

But then it went pretty much global

0:39:030:39:06

and people from all over the world were donating,

0:39:060:39:08

and within two or three days, they had all the money.

0:39:080:39:12

Now they'd reached their target, there was no time to waste.

0:39:120:39:15

It was all really, really quick - once it started happening

0:39:150:39:18

it was just a big, massive snowball and it just didn't stop.

0:39:180:39:22

On October 11th 2013,

0:39:230:39:25

Brecon and his parents boarded a flight to the US to go

0:39:250:39:28

and get the operation that they hoped would change his life for ever.

0:39:280:39:32

The operation was a success, but it only took him half of the way there.

0:39:350:39:40

We knew when we entered into the operation, we were going

0:39:420:39:45

to have a very hard couple of years ahead with the physio, the training.

0:39:450:39:49

He still has years of phsyio ahead of him to build up strength.

0:39:490:39:54

We'll have a few sits-to-stands.

0:39:540:39:56

You know what it is. OK.

0:39:560:39:58

Ready? Up we go.

0:39:580:39:59

Zero!

0:39:590:40:00

One, two...

0:40:000:40:02

Ready? Final one. Slow all the way down.

0:40:020:40:05

Five, four, three...

0:40:050:40:06

ROB: 'Since the operation, we've just noticed gains all the time

0:40:060:40:10

'and they go in stages.'

0:40:100:40:12

You ready?

0:40:120:40:15

'You see small gains and you think, "Was it really worth it?

0:40:150:40:18

'"Was it the right thing?"'

0:40:180:40:21

All of a sudden you just see a big change very quickly

0:40:210:40:24

and then you just think,

0:40:240:40:26

"Yeah, it was 100% worth the effort."

0:40:260:40:28

'He's becoming more confident in his own ability

0:40:300:40:34

'and the main thing is he's got control,

0:40:340:40:36

'which he didn't have pre the operation.

0:40:360:40:39

'It was stopping him being able to walk.

0:40:390:40:43

And today...

0:40:440:40:45

..eight months after the life-changing operation...

0:40:470:40:50

Hello!

0:40:500:40:52

..they're here to meet the man who made it all happen.

0:40:520:40:56

Look at you - no frame!

0:40:560:40:58

After six longs years of pain, struggle,

0:40:580:41:00

worry and setbacks for the Vaughan family...

0:41:000:41:03

Take a step and you can grab my hand.

0:41:040:41:07

Take a big step.

0:41:070:41:08

..Brecon is finally walking.

0:41:080:41:10

-WOMAN:

-That is absolutely amazing.

0:41:100:41:13

ROB: 'My biggest hope really is that he can just walk with his friends,

0:41:130:41:17

'just like any other child really.

0:41:170:41:19

'He may never run properly, but if he can do the majority of the things

0:41:210:41:25

'other kids can do, chances are he's going to have a good little life.'

0:41:250:41:28

Go on, I'm behind you.

0:41:300:41:32

It's really good. It's good to see improvements that he's made.

0:41:320:41:35

-WOMAN:

-Well done!

0:41:350:41:37

-DAN:

-'I wasn't expecting to see him walk as well as he was.'

0:41:370:41:40

Dan's just Dan and he did a marvellous thing,

0:41:420:41:45

an amazing thing,

0:41:450:41:48

but I don't know whether Dan really understands what it's going

0:41:480:41:53

to mean to Brecon in the end.

0:41:530:41:54

It doesn't really seem like that big a deal to me.

0:41:540:41:58

I just helped people out cos it was the right thing to do.

0:41:580:42:02

Dan may not have been able to serve his country in the way he hoped,

0:42:020:42:06

but he's made an incredible difference.

0:42:060:42:07

I'm just proud of him any way, money or not.

0:42:070:42:12

What's he's had to go through and how he still thinks of me and others,

0:42:120:42:16

I'm so proud of him.

0:42:160:42:19

Giving the money away, that's nothing.

0:42:190:42:21

-ANNE:

-I think Dan has given Brecon the ability to be able to walk

0:42:240:42:31

far more sooner than we could ever have hoped for.

0:42:310:42:34

We would have been a long way down the road yet before we would

0:42:350:42:39

have got anywhere.

0:42:390:42:40

Daniel's selfless, amazing...

0:42:440:42:48

..gift...

0:42:510:42:52

means Brecon, within the not-too-distant future, will be

0:42:520:42:57

able to walk around independently...

0:42:570:42:59

..and lead a much more normal life than we could have hoped for him.

0:43:010:43:05

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