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| UPDATED
EVERY FRIDAY
Last Update:
Friday 20th
May, 2005 |
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| All
content © New Journal Enterprises, 2005. |
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| Two admit £1.7m Town hall scam |
 TWO
men face jail after confessing their guilt in Camden Council’s
biggest-ever fraud case, worth more than £1.7 million.
Ex-council official Hieten Patel, 44, and co-accused
Bruno Hofferer, 55, pleaded guilty to a ten-year campaign
of defrauding the Town Hall’s housing benefits division,
at Snaresbrook Crown Court on Friday afternoon.
Opposition politicians immediately demanded a public apology
from Camden Labour leader Councillor Dame Jane Roberts.
The swindle – only brought to general attention after
details were uncovered by the New Journal in May last year
– stirred public anger and proved a huge embarrassment
for the department, which in recent years has been heralded
as one of the country’s top-performing benefit services.
The housing benefits division scored a glowing write-up in
The Guardian newspaper just three years ago in which officials
even joked that other local authorities had asked Camden for
help.
But while government laurels were dished out to senior staff
and ministers were offered tours of the seemingly well-run
department, the massive fraud went undetected by several audits.
Mr Patel, who arrived at the east London court from his Wembley
home in an open-neck shirt and sunglasses, spoke in court
only to confirm his name and his guilty plea.
Previous business records list him as a director of Fushi
Limited, a supplier of beauty and holistic health products
with a flagship store in Sloane Square, west London.
His wife, Ruchita, 37, denied being part of the scam –
a not guilty plea which was accepted by the court with no
further action taken.
Mr Hofferer, a baker who has been living at a relative’s
address in Camden Town since his first court appearance, also
denied that Mrs Patel had been involved in the fraud but pleaded
guilty to conspiring with her husband.
James Lines, defending Mr Hofferer in court, said: “Police
commended him on making a full and frank confession.”
Details of how the pair committed the fraud were not fully
revealed in court but both men admitted having arranged false
benefit claims.
Mr Patel approved claims made by Mr Hofferer, who posed as
the landlord of several properties in the borough.
Payments were then split up and partly paid into Mr Patel’s
private bank account.
The two guilty defendants were released on bail but told to
return to the court next month for sentencing after probation
reports have been filed.
They were warned that they face prison terms.
The court heard that assets owned by Mr Patel and Mr Hofferer
are to be surveyed to see if they can be seized under new
proceeds-of-crime rules.
After Friday’s guilty pleas, council chiefs insisted
that the case was a “positive” example of how
Camden was tough on fraud.
Labour finance supremo Councillor John Mills said: “Camden
Council is committed to protecting public funds and will take
appropriate action to ensure that any allegations of fraud
or corruption are fully investigated and, where appropriate,
prosecute those involved.
“This is a really positive
example of effective joint working between Camden Council
internal audit investigations officers and the Metropolitan
Police at Holborn.”
But the fact the fraud went on for so long – it began
in October 1994 – has caused alarm and demands for an
apology have been made.
Tory leader Councillor Piers Wauchope said: “There has
been absolutely no apology. Nobody has said sorry for sloppy
procedures over a number of years and it has cost the public
£1.7 million. They are trying to make it sound positive
but it was just sloppy.”
New Lib Dem chief Councillor Keith Moffitt added: “It
goes to show how meaningless the awards that have been heaped
on Camden are.
“Dame Jane (Roberts) takes great
pride in them but they do not guarantee a good service, as
has been shown on this large scale.”
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