Father and son sentenced over mass fraud

Father and son sentenced over mass fraud




A father and son have been sentenced for their part in a colossal fraud, which was orchestrated by a group of seven.

A father and son have been sentenced for their part in a mass fraud orchestrated by a group of seven.

Financial Investigators in organised Crime Branch have calculated the total value of the mortgages obtained in excess of £1.5 million, where the total profit to the seven defendants totalled at more than £483,000. The scam involved a total of 26 property transactions, where lenders lost over £557,000 through repossessions.

Holywood Independent financial advisor William Larmour, 63, and Coleraine solicitor John Hickey, 56, were amongst those convicted of applying mortgages using inflated purchase prices for business and residential properties, mainly in the Coleraine area of Northern Ireland. As a result of the inflation banks and building societies offered greater loans than would otherwise have been available.

Businessman John Gaile, 52, who created the scam, then sold the properties, sometimes to family members or to Mr Hickey, where he either took the profit or invested it into further property purchases by obtaining the mortgage by deception. This ran from 1995 to 2008.

Mr Gaile and Mr Hickey were given two years’ jail sentence which were suspended for three years each, while Mr Larmour was given conditional discharge for failing to disclose money laundering. Gaile’s brother, Paul Gaile, 50, and his wife, Lena Gaile,49, were both sentenced. Paul for one year in jail, suspended for three years, and Lena six months in prison, suspended for two years. Also, Paul's sons, Lee, 29, and Kieran Gaile, 30, were involved in the scheme. Lee was sentenced to six months in prison, suspended for two years, and  Kieran being handed a conditional discharge.

Detectives from PSNI Organised Crime Branch have welcomed the sentencing. Detective Constable Sam Kinkaid, of Organised Crime Branch, said: “They thought they could beat the system by continuing with their criminal activity. But an extensive investigation by Organised Crime Branch detectives picked its way through the trail of purchases and applications to uncover a criminal enterprise….”

“This case is a reminder to anyone who thinks they can get away with large scale fraud that there is every likelihood they will be apprehended by police and have to suffer the consequences, financial and otherwise,” he added.

The sentencing took place last June, however as other proceedings have been completed, reporting restrictions have now been lifted.

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