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Tories warned Mark Menzies misuse of funds claims ‘constituted fraud’ but whistleblower told there was no ‘duty’ to report it | Politics News

The Conservatives were warned ex-Tory MP Mark Menzies’s alleged misuse of party funds may have constituted fraud but the whistleblower was told there was no duty to report it

Mr Menzies, the MP for Fylde in Lancashire, gave up the Tory whip in the wake of reports in The Times that he misused party funds. He disputes the allegations.

The allegations came about after Mr Menzies former campaign manager, Katie Fieldhouse, spoke to the newspaper.

Mark Menzies pictured in Peru  in 2020
Pic: AP
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Mark Menzies pictured in Peru in 2020. Pic: AP

In a new interview with The Times this evening, Ms Fieldhouse, 78, claims she was told the Conservative Party was aware the allegations were potentially criminal.

She says the Conservative Party’s chief of staff “told me that when they first took over the investigation [from the Whips’ Office] they had consulted solicitors”.

She added: “He told me on the phone, ‘the solicitor said it is fraud but you are not duty-bound to report it because it’s not Conservative Party money’.”

The whistleblower said she was told the decision not to inform the police was made because it was donors’ money and not the party’s.

A Conservative spokesperson said: “The party is conducting an investigation into the claims made and has been doing so for several months.

“We will of course share any information with the police if they believe it would be helpful to any investigation they decide to undertake.

“Suggestions the party has not been seriously examining this matter are demonstrably false.”

Lancashire Police said today it was “reviewing” information about Mr Menzies after Labour asked for an investigation to take place.

In a statement, the force said: “We can confirm that we have now received a letter detailing concerns around this matter and we are in the process of reviewing the available information in more detail.”

Read more: All the Tory MPs suspended since Sunak became PM

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Ruth Davidson on Mark Menzies allegations

The party’s chief whip, Simon Hart, is said to have been made aware of the claims in January, when the former campaign manager reported what had happened.

Sky News understands there has been an investigation ongoing by Conservative Campaign Headquarters (CCHQ) since the allegations were first raised, but further information came to light this week and Mr Hart acted immediately.

Speaking tonight, Labour’s chair Anneliese Dodds said: “The Conservative chairman and chief whip must urgently come out of hiding and explain what they knew and what advice they received.

“If, as reported, they or Conservative officials​ were warned about potentially fraudulent activity and chose not to go to the police, this would be indefensible.”

Mr Menzies, who has served as an MP since May 2010, is reported to have phoned his 78-year-old former campaign manager at 3.15am last December, saying he was locked in a flat by “bad people” and needed £5,000 as a matter of “life and death”.

The sum, which rose to £6,500, was eventually paid by his office manager from her personal bank account and subsequently reimbursed from funds raised from donors in an account named Fylde Westminster Group, the newspaper says.

Speaking to Sky News, Ms Fieldhouse said: “I am feeling dreadful because I am a devout Tory and as I have said to everybody else, I reported his actions to the chief whip… it is now the middle of April.

“Come to your own conclusions [about] what is happening.”

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Asked if she was disappointed with the way the complaint was being handled, she said: “Yes.”

Mr Menzies said on Thursday: “I strongly dispute the allegations put to me. I have fully complied with all the rules for declarations. As there is an investigation ongoing I will not be commenting further.”

British man accused of swindling nearly $100m in wine fraud case pleads not guilty | US News

A British man accused of allegedly defrauding investors of nearly $100m (£79m) through a Ponzi-like scheme involving non-existent luxury wines has pleaded not guilty in a US court.

Stephen Burton, 58, was extradited to New York from Morocco on Friday to face the charges after he was arrested in 2022 after entering that country using a fake Zimbabwean passport.

Federal prosecutors said Burton, along with a co-defendant, ran Bordeaux Cellars, a company they said brokered loans between investors and high-net-worth wine collectors.

Burton pleaded not guilty to the indictment which was filed in 2022 and is being held pending trial.

Burton and co-defendant James Wellesley allegedly solicited $99m from investors from June 2017 to February 2019, approaching them at places including conferences in the US and overseas.

The men told lenders that the loans would be backed by wine they stored for wealthy collectors and promised profits through interest payments.

However, these collectors “did not actually exist and Bordeaux Cellars did not maintain custody of the wine purportedly securing the loans,” the US Attorney’s Office for the Eastern District of New York said in a statement.

Wellesley, also a British citizen, is currently awaiting extradition in the UK.

If convicted, the defendants could each face up to 20 years in prison for charges of wire fraud, wire fraud conspiracy and money laundering conspiracy.

UK to launch an Online Fraud Charter with 11 major tech companies including TikTok, Snapchat and YouTube | Politics News

The UK is to launch an Online Fraud Charter with 11 major tech companies in a “world-first” initiative to combat scams, fake adverts and romance fraud.

Home Secretary James Cleverly will host representatives from several leading tech companies – including Facebook, TikTok, Snapchat and YouTube – to sign the pledge to tackle internet fraud on Thursday.

Other firms signing the voluntary agreement include Amazon, eBay, Google, Instagram, LinkedIn, Match Group and Microsoft.

The charter will call on the firms to introduce a number of measures to better protect users, including verifying new advertisers and promptly removing fraudulent content.

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There will also be increased levels of verification on peer-to-peer marketplaces and people using online dating services.

The companies will pledge to implement the measures which apply to their services within six months.

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James Cleverly leaves 10 Downing Street after attending a cabinet meeting 
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James Cleverly Pic:AP

It will be backed by a crackdown on illegal adverts and promotions for age-restricted products such as alcohol or gambling which target children.

These steps will be detailed in an action plan published by the Online Advertising Taskforce.

Mr Cleverly, who will announce the charter at Lancaster House, said: “The Online Fraud Charter is a big step forward in our efforts to protect the public from sophisticated, adaptable and highly organised criminals.

“An agreement of this kind has never been done on this scale before and I am exceptionally pleased to see tech firms working with us to turn the tide against fraudsters.

“Our work does not end here – I will continue to ensure we collaborate across government, and with law enforcement and the private sector, to ensure everyone in the UK is better protected from fraud.”

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Each of the tech firms will pledge to work closely with law enforcement including creating direct routes to report suspicious activity.

The government highlighted that fraud accounts for about 40% of all crime in England and Wales, with data from UK Finance showing that almost 80% of authorised pushed payment fraud originating from social media or fake websites.

The news comes as cyber security experts warn that the rise of generative AI tools such as ChatGPT is helping cybercriminals create more convincing and sophisticated scams.

As ChatGPT marks the first anniversary of its launch to the public, a number of experts have said the technology is being leveraged by bad actors online.

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PM hails ‘landmark’ AI agreement

They warn that generative AI tools for text and image creation are making it easier for criminals to create convincing scams, but also that AI is being used to help boost cyber defences.

At the UK’s AI Safety Summit earlier this month, the threat of more sophisticated cyber attacks powered by AI was highlighted as a key risk going forward, with world leaders agreeing to work together on the issue.

The UK’s National Cyber Security Centre (NCSC) has also highlighted the use of AI to create and spread disinformation as a key threat in years to come, especially around elections.

Ex-Formula One boss Bernie Ecclestone admits fraud | UK News

Ex-Formula One boss Bernie Ecclestone has pleaded guilty to fraud over a failure to declare £400m held in a trust in Singapore to the government.

Ecclestone, who turns 93 later this month, was due to face trial at Southwark Crown Court in November after previously denying the charge.

The billionaire appeared at the same court today wearing a dark grey suit, supported by his third wife, Fabiana Flosi, to plead guilty to a single count of fraud on 7 July 2015.

The court has previously heard he failed to declare a trust in Singapore with a bank account containing around 650 million US dollars, worth about £400 million at the time.

Prosecutors said Ecclestone made untrue or misleading representations to HM Revenue and Customers at a July 2015
meeting, when he said he “established only a single trust” in favour of his daughters Deborah, Tamara and Petra.

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COVID-19: Government ‘too slow’ to recover taxpayer money lost to fraud | Politics News

The government is still being “too slow” to recover taxpayer money lost to fraud and error over the pandemic, MPs have said.

The cross-party Public Accounts Committee (PAC) also said Whitehall needs a “step change” in its approach to risk in order to prevent a similar “panic response” in the future.

In a wide-ranging report, the group laid bare a number of “repeated problems”.

Total fraud and error across COVID employment schemes delivered by HMRC was an estimated £4.5bn, of which the department expects to recoup just £1.1bn, PAC said.

“Some increase in fraud and error was an inevitable short-term consequence of providing support quickly, but government is being too slow to recover taxpayer pounds lost,” the report said.

“Whitehall departments have an opportunity to do better by the taxpayer by prioritising work to tackle current levels of fraud and error; improving how they measure fraud and error so we can be clearer about the extent of the problem and measures to tackle it; and planning and implementing better fraud and error safeguards.”

And the committee also found the Department of Health and Social Care wasted an “extraordinary” £14.9bn on PPE and related COVID expenditure across the last two years.

“No-one could predict the COVID-19 pandemic, but we could have been better prepared,” the report added.

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“The scale of the losses incurred in a panic response on issues such as PPE procurement are documented in this report. We need to learn the lesson that there is always unpredictability.”

A Government spokesperson said: “In the last two years, we have recovered more than £3.1bn of fraud losses, including within COVID-19 schemes, and as the report acknowledges, we have already made significant progress by establishing the Public Sector Fraud Authority.

“However, we are not complacent, which is why we are expanding the Government’s Counter-Fraud Profession, developing new technologies and boosting skills and training to further protect the public purse.”

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‘A scandal of a huge proportion’ (12 Dec, 2022)

Angela Rayner, Labour’s deputy leader, said: “This is a damning indictment of eye-watering Tory waste, with Rishi Sunak writing off billions in taxpayers’ money lost to COVID fraud after ignoring basic checks and warnings.”

Man pleads guilty to running multimillion-pound criminal website in Met Police’s largest ever fraud investigation | UK News

A man responsible for running a multimillion-pound fraud website pleaded guilty following the largest fraud investigation by the Metropolitan Police.

Tejay Fletcher, 35, pleaded guilty to running iSpoof, a website that allowed criminals and fraudsters to appear as if they were calling from banks, tax offices and other official bodies in an attempt to defraud victims.

They posed as representatives from banks including Barclays, Santander, HSBC, Lloyds, Halifax, First Direct, Natwest, Nationwide and TSB.

The total losses of frauds enabled by iSpoof in the UK alone exceeds £43m, with total global losses estimated to be at least £100m.

“I am incredibly proud of my team in the Cyber Crime unit who ran this investigation resulting in Fletcher pleading guilty. He was the ringleader of a slick fraud website which enabled criminals to defraud innocent people of millions of pounds,” Detective Superintendent Helen Rance said.

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She added that the Met are doing “more than ever” to protect Londoners from cyber fraud and “devised a bespoke plan to reach out to victims who were targeted via iSpoof”.

Charges against Fletcher included making or supplying articles for use in fraud, encouraging or assisting the commission of an offence, possessing criminal property and transferring criminal property, all of which he pleaded guilty to, when appearing at Southwark Crown Court.

Thomas Short, specialist prosecutor for the Crown Prosecution Service, called fraud an “insidious crime” that causes “huge emotional distress and devastation”.

He said: “As the leading administrator of the iSpoof website, Tejay Fletcher helped to provide fraudsters with the tools to cheat innocent people on a shocking scale.

“I hope today’s conviction sends a strong message to criminals that they can no longer hide behind online anonymity.”

Fletcher will be sentenced on Thursday 18 May.

Former Labour MP convicted of six counts of expenses fraud | Politics News

A former Labour MP who submitted fake expenses to fund a cocaine habit while in office has been convicted of fraud.

Jared O’Mara, who represented Sheffield Hallam from 2017 to 2019, was on trial at Leeds Crown Court for submitting “dishonest” invoices to the Independent Parliamentary Standards Authority (Ipsa).

He was accused of trying to claim up to £30,000 in taxpayers’ money to fund an “extravagant lifestyle – drink, cigarettes and, above all, cocaine”.

O’Mara, 41, was in “poor mental health” at the time and abusing the class A drug in “prodigious quantities”, the court heard.

On Wednesday he was found guilty at trial of six counts of fraud and cleared of two.

Co-defendant Gareth Arnold was found guilty of three out of six fraud charges, and a third defendant, John Woodliff, was found not guilty of one offence of fraud.

O’Mara and Arnold, 30, will be sentenced at the same court on Thursday.

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Jurors were told O’Mara made four claims between June and August 2019 from a “fictitious” organisation called Confident About Autism South Yorkshire.

They also heard he submitted two invoices from his “chief of staff”, Gareth Arnold, for media and PR work. Prosecutors say that work was never carried out.

Leeds Crown Court was told Ipsa – the organisation set up after the expenses scandal to regulate MPs’ staffing and business costs – did not pay out any of the claims due to a lack of evidence that any of the work was done.

File photo dated 11/10/2017 from a session of the House of Commons Women and Equalities Committee, of Jared O'Mara, the Labour MP for Sheffield Hallam, who has had the whip suspended while claims that he called a constituent an "ugly bitch" just months before his election are investigated.
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Picture by: PA/PA Archive/PA Images
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Jared O’Mara has been found guilty of six counts of fraud

Jurors were told O’Mara had a “dysfunctional” office and sacked most of his staff “overnight” in around April 2019.

Financial investigations revealed O’Mara was “living to or beyond his means and in dire need of cash”.

Setting out his argument, prosecutor James Bourne-Arton said Arnold and Woodliff were “old friends of Jared O’Mara and sadly were persuaded to go along with his dishonest claims”.

In the summer of 2019, however, Arnold contacted South Yorkshire Police after “reaching a point at which he was no longer willing to participate in the fraud”, the court heard.

In a phone call played to the jury, Arnold said: “It’s a bit of a tricky one, but yesterday I spoke to the 999 service and the mental health crisis team about my employer, who I believe is suffering a severe psychotic episode and has delusions of a conspiracy against him.

“I also believe he has been submitting fake expense claims to the government very recently.”

O’Mara won Sheffield Hallam for Labour from former Liberal Democrat leader Sir Nick Clegg in 2017 but later left the party after a series of controversies.

He stayed in office as an independent MP but did not contest the 2019 general election.

Bernie Ecclestone indicates not guilty plea over fraud charge | UK News

Former Formula One boss Bernie Ecclestone has indicated a not guilty plea to a charge of fraud at Westminster Magistrates’ Court.

The 91-year-old is facing a charge over an alleged failure to declare £400 million of overseas assets to the government.

He faces a charge of fraud by false representation between 13 July 2013 and 5 October 2016.

According to the charge, he allegedly claimed he had established a single trust in favour of his daughters.

He is also alleged to have said that he was not the beneficiary of any other trust in or outside the UK.

Ecclestone – who has three grown-up daughters, Deborah, 67, Tamara, 38, and Petra, 33, and a young son, Ace – allegedly made the representations “intending to make a gain, namely not stated, for yourself”.

Ecclestone was walked in through the building’s exit by court security along with his legal team.

Chief Magistrate Paul Goldspring allowed him to stand outside the dock after his barrister Clare Montgomery QC said her client was “having a little bit of trouble hearing”.

Ecclestone confirmed his name, date of birth and address in Knightsbridge, central London, before indicating a not guilty plea.

He was granted unconditional bail ahead of his next appearance at Southwark Crown Court on 19 September.

The charge against the billionaire was authorised by the Crown Prosecution Service last month after an investigation by HM Revenue and Customs, which said the probe had been “complex and worldwide”.