100 officers swoop to smash benefits racket

The innocent victims were allowed to seek jobs and claim benefits in the UK because their country is part of the European Union, customs officials revealed.

The tricksters behind the racket are believed to have recruited them with bogus offers of help to find work in England.

The Eastern Europeans were legitimately brought into the UK and encouraged to get the necessary documentation to find employment and pocket benefits.

Then the fraudsters, believed to be from the same Eastern European country, took the paperwork and left the job seekers high and dry. They no longer had the required paperwork, had little or no English and no knowledge of how the system worked in this country.

Meanwhile the gang used the details to make a "substantial" number of tax credit and maternity allowance claims.

These initially appeared genuine because they were using legitimate information but Revenue and Customs investigators launched an investigation in May 2012 after concerns grew that they were fraudulent and the probe led to the raids today.

Adrian Farley, Assistant Director of Criminal Investigation for the Revenue & Customs said: "We are going for the whole organisation. We did not just want to pick off the bottom of the chain. We want the people at the top who were making the money.

"This is organised crime with an international dimension.

"We are working with law enforcement agencies abroad and in this country and expect to make further arrests.

"People were brought to this country who could legitimately work and apply for benefits in this country. They then innocently surrendered those to the criminals who then used the details to perpetrate the fraud.

"As the country of origin is a member of the EU its nationals can travel freely to this country. There was no need to smuggle them in. They could then apply for documentation and register for benefits entirely legally but that information was then misused."

Mr Farley added: "This was one of the biggest operations of its kind ever conducted in the West Midlands and the cooperation of other law enforcement agencies has been very important in achieving a satisfactory conclusion."

Revenue and Customs officers backed up by police and Department of Work and Pensions officials were accompanied by dogs trained to sniff out cash and drugs during the raids on the eight targeted addresses. Computers, business records, paperwork and vehicles were checked by investigators.

A Mercedes car was parked on the drive of a detached house in Tipton raided during the swoops. Officers shouted through the letterbox warning that the front door would be broken down if it was not opened. It was unlocked moments before officials started to break in.

The property was then searched and a man and women arrested. Soon afterwards investigators scoured business premises in West Bromwich town centre linked to the inquiry after getting the keys from the previous house.

The property advertised "claims management" among other features ranging from computer repairs to beauty treatments.

Detective Inspector Neil Postins from West Midlands Police Economic Crime Unit, said afterwards: "Around 30 of our officers have supported this morning's operation which has seen a number of individuals arrested and a significant quantity of items seized.

"Fraud cases are notoriously complex and law enforcement agencies must work together to bring offenders to justice. This morning's operation is a testament to those close relationships and another step forward in the fight against fraud."