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Gloucestershire Business News

Fraud case involving Gloucester businessman comes to an end

A 57-year-old company director who created fake invoices for a Gloucester businessman in order to force a multinational company to settle a 'debt', has received a conditional discharge.

James Every, of Woodside Road, Sevenoaks, Kent, supplied the fictitious invoices to Neil Hardy, 41, of Mount Pleasant, Kingsway, Gloucester.

Mr Hardy, who ran Universal Protective Coating Systems Ltd (UPCS), was jailed last year for 12 months for revenue frauds totalling £66,000.

Appearing in Gloucester Crown Court yesterday to answer for his part in the affair Every's defence was that he had been acting in ignorance.

Judge Michael Harington was told by prosecutor Chris Smyth that Hardy had led Every to believe UPCS had entered into a contract with Siemens to apply coatings to wind turbines.

The court heard that Every was told if he produced the invoices from his business, Hydrodynamix, to UPCS, that "would apply pressure to Siemens to pay UPCS".

The prosecutor acknowledged this did seem "very far-fetched", but was what Every believed.

According to the prosecutor the truth of the matter was that UPCS did not have a contract with Siemens at all.

The prosecutor pointed out that as well as being in control of Hydrodynamix, Every also had a 10 per cent share in Hardy's company, UPCS, "that rose to 20 per cent".

However, he conceded that Every's decision to lend Gloucester-based Hardy £147,000 "in order for UPCS to buy a coating product" also made him a "loser along with HMRC".

Jonathan Rose, who was defending Every, said: "I ask Your Honour to deal with his extremely leniently."

Mr Rose said his client was in poor health with heart problems, and his financial position was 'not what it used to be'.

He said Every had no previous convictions and was currently volunteering with The National Trust.

Every admitted fraud by false representation between August 28, 2013, and December 5, 2014, by produced five false invoices.

The judge said we would impose an eighteen-month conditional discharge saying: "You were out of pocket and in financial difficulties.

"At that stage you were asked to produce invoices to put pressure on Siemens.

"At no time did you know he was intending to defraud HMRC of VAT."

"I accept you were a victim as was the revenue. I am prepared to take an exceptional course."

Alongside the discharge, Every was ordered to pay a contribution to the costs of the prosecution of £500.

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