Six Years For Contractor's VAT Scam

A man has been sentenced to six years in jail for his role in “a well-organised and well-planned” VAT scam.

33-year-old Derek Floyd was jailed yesterday by Judge Ray Fulham at Ennis Circuit Court for six years, with the final year suspended, after a jury convicted Floyd of a €680,000 VAT fraud between January 2001 and October 2003.

The 10-day trial in March heard that Floyd generated false invoices totalling €10.1 million that allowed him to seek fraudulent VAT repayments of more than €680,000 from the Revenue.

Retired Revenue official Michael Downey said yesterday an estimated €15 million went through Floyd’s bank account between July 2001 and June 2004, with almost €7 million lost to the State through VAT payments of €1.6 million and €5.25 million in relevant contracts tax.

Mr Downey said Floyd was not the scam’s main mover, but “this fraud could not have been undertaken without Mr Floyd”.

He added that the prosecution took place “after a massive investigation” but no other person had been before the courts in relation to the fraud. One of the other participants was dead, “with another disappearing out of the jurisdiction”.

Judge Fulham said Floyd was a willing participant in a well-organised and planned VAT scam, with the fraud representing a significant economic loss to the State.

The maximum sentence allowed on the charges of which Floyd was found guilty is five years. Judge Fulham applied three-year terms in relation to two counts, to run consecutively, with the final year suspended.

(H)