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Fraudsters to pay insurers
8:10am Wednesday 4th September 2013 in News
A JUDGE has ordered that hundreds of thousands of pounds being confiscated from two landfill site fraudsters will go to the insurance company that paid out to their employers.
But the compensation being taken from Malcolm Smart and Victor Millin will cover just a fraction of the £6m paid out to the owners of the tip for their deception.
In July a judge made confiscation orders under the Proceeds of Crime Act on the pair to ensure they could not profit from their crime.
Smart, 52, who was the boss at the site, was ordered to pay £211,098.33 while weighbridge operator Millin, 65, had to cough up £19,000.
Within days of the hearing insurance company Chubb asked if the money could go to them, rather than the Treasury, as they had paid out to Viridor, the pair’s employers.
And after another hearing at Swindon Crown Court, Judge Euan Ambrose ruled he could adjust the order to allow the cash to go to the firm.
Lawyers for Smart, of Broad Town, and Millin, of Ermin Street, Blunsdon, initially tried to resist the change saying their clients could be left having to pay up twice if they were also sued. They dropped their objection when the insurers gave them an assurance that if the order was made they would not pursue their clients through the civil courts.
Mark Worsley, for the Crown, said the insurers had paid out £6m as a result of the years of deception carried out by the men.
Smart was the boss of Sand Farm Landfill, in Calne, when he and Millin deliberately under-weighed the waste lorries in exchange for kick backs from customers.
Covert surveillance of loads arriving on a day in early October 2009 revealed at least three were under-weighed, costing the firm £3,500.
A few days later auditors went to the tip and noticed the takings rocketed when they were there, and falling again when they left.
Both men were spoken to by their employers Viridor, then the police, and they admitted what they had been doing. They either under weighed the loads, misclassifying waste, or simply ignored some vehicles arriving at the site.
Between the start of April 2007 and October 10, 2009, they cost the company £907,255; of which about £200,000 was in landfill tax and VAT.
Although Smart said he received nothing for his deceit, Millin accepted his co-defendant had given him brown envelopes stuffed with cash totalling between £10,000 and £20,000.
In August last year, Smart received two years and Millin 16 months in jail and both have now been released.
The pair must hand over the money by late January or Smart, who it is thought will have to sell his house, faces a three-year jail term and Millin 12 months.
An investigation was launched into seven directors of a waste disposal firm who may have benefited from the scam, but no charges were brought.