'Fraud pair will be in debt until they are 80'

Trusted article source icon
Friday, March 12, 2010
Profile image for This is SouthWales

This is SouthWales

A GORSEINON couple who ran up £240,000 in debts trying to fund an invention, have appeared in court for fraudulently claiming Job Seekers Allowance.

Swansea magistrates heard how engineer Philip Davies discovered a way of securing metal without using nuts, bolts or welding.

He and his wife Debra, both aged 48, of Cecil Road, set about developing the project and paid thousands to have the idea patented.

But the pair racked up so much debt that their company went into liquidation and it will now take them until they are aged 80 to repay what is owed.

John Allchurch, prosecuting on behalf of the Department for Work and Pensions, said the pair had fraudulently claimed the allowance during their financial difficulties.

He said between August and December 2007 they received an overpayment of £2,410 between them.

"Mr and Mrs Davies both signed fortnightly declarations regarding their circumstances," he said. "Suspicions arose in November 2007 that Mrs Davies was working."

Mr Allchurch said an investigation uncovered that both were working on a self-employed basis in a care home.

They pleaded guilty to two counts of fraud and six of making false representations by failing to declare they that they were working.

Clive Rees in mitigation, said: "They are of clean character and both now have a serious blemish of dishonesty against them.

"They have had this hanging over their heads since May 2008. They're extremely remorseful. They have been repaying on a monthly basis."

Mr Rees said that "over the course of a long career" in engineering Mr Davies came up with the invention.

"Patenting as you know is a very expensive exercise," he said.

"He didn't want to tell a major company about it in case they took it for themselves. He paid a substantial amount for patenting, but what he didn't know was that this had to be renewed on a regular basis."

Mr and Mrs Davies decided to undertake the project themselves.

"Over that period of time they have run up debts of some £240,000," he said.

The court heard they had raised the money to support their enterprise through getting a second mortgage on their home and through credit cards, until the cash ran out "and they could go no further".

They lost the patent on Mr Davies's invention.

"They took employment with the home where they were both working nights," said Mr Rees.

"They were under extreme pressure from their creditors. They were desperate for money and that's why they applied for benefits."

"They're paying £3,500 in debts per month. Both have two jobs.

"Mr Davies has worked out that this is going to last until they're 80."

The pair were each sentenced to a 12-month community order and to undertake 50 hours unpaid work.

julia.bosnyak@swwmedia.co.uk

Tweet this article
Report