Company directors sentenced for tax fraud

TWO Carmarthenshire company directors, who stole more than £2.7 million through tax fraud and money laundering to fund their extravagant lifestyles, have been sentenced today after they were investigated by HM Revenue and Customs (HMRC).

Richard John Baylis Safadi, 47, from Carmarthen and Mandy Jayne Galinsky, 53, from Ammanford, who ran Penybanc Car Sales Limited and Ammanford Metal Recycling Limited, had tried to cover up the tax frauds by frequently changing the names, directorships and shareholders of their businesses. However, HMRC officers unravelled their lies and put an end to their theft from honest taxpayers and customers.

Investigators found that Safadi and Galinsky had ripped off customers by charging more than 1.6m in VAT, but had only passed £40,000 on to HMRC. The pair were also found to have pocketed more than £640,000 in Corporation Tax due on company profits.

Safadi failed to file a single tax return on his personal income, despite becoming a millionaire. He stole more than £280,000 in tax that should’ve been passed on to HMRC.

Galinsky, who claimed she had not earned a penny since 2009, had in fact earned over £500,000 and kept the £230,000 she should’ve paid in tax. Both were proven to have lied when investigators discovered profits from both companies going into their private bank accounts on a regular basis.

Colin Spinks, Assistant Director, Fraud Investigation Service, HMRC, said: “Safadi and Galinsky stole an extraordinary amount of cash to fund lifestyles most people can only dream of. It was not only customers, who paid their tax in good faith, who were exploited. Between them, the pair took advantage of the tax system at every opportunity and stole money from where it was intended – funding vital public services. It’s only right that the money they stole is recovered.

“If you know of anyone who is evading tax please contact the Fraud Hotline on 0800 788 887, and help us stamp out this crime.”

Investigators found that both Safadi and Galinsky enjoyed lavish lifestyles with all their personal expenses including holidays, credit card bills and loan agreements for their vehicles, paid out of company expenses. Both Safadi and Galinsky had rental properties, holiday homes in Kenya, which they had bought outright, and drove high-end cars including Range Rovers, Bentleys, a BMW and a Rolls Royce. In total they stole £2,786,374 in tax.

The pair were found guilty of failing to pay the correct tax for their used car dealership and scrap metal company, or pay the tax due on their personal income.

Richard Safadi was sentenced to 24 months, suspended for two years, and Mandy Galinsky was sentenced to 10 months, suspended for 18 months, at Swansea Crown Court today (Jul 5).