Con gang in racket to rip off loan system

A fraud that led to more than £33,000 being swindled from the Government's crisis loan scheme has been smashed by investigators, it can be revealed today.

The Black Country-based con saw a gang of crooks pocket cash from the pot of money set aside for people hit by an emergency or disaster. The Department for Work and Pensions makes interest-free loan payments of up to £440. But criminals forged fake tenancy documents, created "phantom" landlords and devised a script for "recruits" making a fraudulent application.

The gang provided add-resses of innocent people throughout the Sandwell and Dudley areas.

Investigators used voice recognition technology and covert surveillance to help crack the racket.

Wolverhampton Crown Court heard yesterday the gang made a series of fictitious applications, with the role of the landlord being played by another member of the group.

The group pocketed £33,518 during 84 fraudulent applications between October last year and July.

Prosecutor Mr Harpreet Sandhu told the court that Matthew Warren, aged 25, of St John's Road, Dudley, was the "head" of the racket.

The phone number of his uncle, Luke Williams, 27, also of St John's Road, was on a number of applications. Also linked to some applications through his mobile number was Brett Williams, 33, also of St John's Road.

His partner, Natalie Williams, of the same add-ress, admitted a connection to four applications while Paul Bell, 35, of Leasowe Road, Tipton, was linked through mobile telephone evidence. His partner, Sandra Wheldon, 30, of the same address, pretended to be a landlord.

Three other defendants, Leonard Loveridge, 18, of Ivanhoe Street, Dudley, Steven Hands, 28, of Cel-andine Close, Dudley, and Stephen Richards, 29, of Lines Road, Dudley, were recruited to front applications.

All the defendants have each admitted conspiracy to defraud. They were being sentenced today.