A criminal gang responsible for the largest benefit fraud in UK history, which saw them swindle nearly £54 million in Universal Credit, have been ordered to repay a mere £2 million of their illicit gains. The five-strong group used the stolen taxpayer funds to finance extravagant lifestyles filled with luxury cars and designer goods.
The Industrial-Scale Fraud Operation
The fraud was orchestrated by Galina Nikolova, 38, Stoyan Stoyanov, 27, Tsvetka Todorova, 52, Gyunesh Ali, 33, and Patritsia Paneva, 26. From the back rooms of three corner shops in Wood Green, north London, they submitted approximately 6,000 fraudulent benefit claims over a four-year period.
Using a combination of real people and stolen identities, the gang supported their applications with forged documents. When claims were initially rejected, they persistently resubmitted them until they were approved. The operation was finally exposed in May 2021 following a tip-off from a police officer in Sliven, Bulgaria.
Lavish Spending and Legal Reckoning
The proceeds of the massive Universal Credit fraud were lavished on high-end items. Raids on London addresses uncovered £750,000 in cash hidden in suitcases, alongside a black Audi, designer watches from Emporio Armani and Versace, and luxury footwear from Gucci and Chanel.
In May 2024, all five admitted to fraud and money laundering offences, receiving combined prison sentences totalling 25 years. Nikolova was handed an eight-year term, while her partner Stoyanov received four years. Shockingly, Stoyanov continued to submit fraudulent claims even after the gang's detention, stealing a further £17,000 while under investigation.
A Fraction Recovered
At a recent confiscation hearing, it was revealed that the gang has been ordered to repay only £2 million—roughly just 1% of the £53.9 million they stole. Prosecutors disclosed that efforts to recover the full amount are ongoing but complicated by the fact most of the money was moved overseas.
All members except Gyunesh Ali have been released from prison and are awaiting deportation hearings. A spokesperson for the Department for Work and Pensions stated: "We take all fraud seriously and last year we saved an estimated £25bn through our prevention and detection activities. In this case, action is ongoing to recover further money."
