GUY ADAMS reveals how migrants pulled off the biggest welfare fraud in British history

April 18, 2024
Posing proudly behind the counter of a small grocery that sells products from Eastern Europe, Galina Nikolova has the appearance of a devoted store owner. And one that was prosperous as well. Additional social media images feature the Bulgarian, dressed in expensive clothes, taking lavish vacations to Madrid, Turkey, a five-star beach resort on the Black Sea, and spa treatments in Manchester. But what emerged last week is that the key to the 38-year-old's lifestyle lay not in the stuffed vine leaves, salamis and sweet treats that lined the shelves of this North London shop — but in an office at the rear where the real 'business' took place. There, together with four of her compatriots — two women and two men — Nikolova went about her daily work, ripping off the British taxpayer. The gang's aim was simple: to exploit the benefits system on an industrial scale, using it as 'a cash machine' to fund their lavish lives. Operating from three 'benefits factories' across London, they offered a bespoke range of services. As well as creating multiple false identities to allow them to claim Universal Credit for themselves, they offered fake documents to enable others to make bogus claims. These included fictitious tenancy agreements, counterfeit payslips and forged letters from landlords, employers and GPs. Success for customers was almost guaranteed, with fully prepared 'benefits packs' available to buy containing all the necessary paperwork. Even if the claims were initially rejected by the Department of Work and Pensions, the fraudsters would brazenly try again and again until they were granted. Advertising largely through word of mouth, the Mail has learned that the service they offered was so popular that at times a queue of 30 to 40 people would snake through the shop in Wood Green, waiting to be seen. Indeed, it is claimed that during the coronavirus lockdown the gatherings were so large police were, on occasion, called to disperse them. While, sadly, benefits fraud is nothing new, what is shocking about the fraud perpetrated by Nikolova and her gang is its longevity and scale. Operating between 2016 and 2021, by the time investigators smashed the ring it is estimated that some 6,000 fake claims had been submitted at a cost to the taxpayer of a staggering £54 million — the biggest benefits con in British history. Where all the money has gone is another matter. A video recovered by police from gang member Gyunesh Ali's phones shows him holding a wad of £20 notes which he throws into the air, while an unknown woman scrabbles around on her hands and knees to pick them up. When police arrested Nikolova's 27-year-old toyboy lover Stoyan Stoyanov — the pair were nicknamed The Bosses Of London by friends — they recovered more than £750,000 in cash. Smaller sums were also seized from Tsvetka Todorova, Patritsia Paneva and Ali. A high-end Audi and designer goods including watches, jackets and glasses were also recovered. Investigations are now underway to see whether any of their ill-gotten gains were invested in property or shipped back to Bulgaria. Following his initial arrest, Ali fled the UK to dodge justice. The Mail can reveal that while there, the 34-year-old set up a company to invest in property in the country's second largest city, Plovdiv. Faced with incriminating evidence, including encrypted messages and CCTV footage, all five defendants pleaded guilty to charges including fraud and money laundering related offences. The final pleas were entered last week allowing details of the case to be reported. Sentencing will take place at the end of May. The convictions have been widely praised, with Mel Stride, the Work and Pensions Secretary, saying: 'These criminals were cold and calculated in their manipulation of a system designed to help the most vulnerable people back on their feet. 'Benefit fraud is not a victimless crime. By stealing from the most vulnerable, fraudsters put pressure on a system designed to help those who need it most — all for personal gain.' Strong words, but the reality is that benefit fraud has mushroomed in recent years. Universal Credit is the main welfare benefit in the UK and is currently claimed by 5.8 million people both in and out of work. It is intended to help with the costs of housing, children and childcare. It also supports disabled people and carers.