Two pharmacists have been found guilty of lying about exporting lifesaving drugs to Nigeria and have been jailed for six and a half years for claiming £300,000 in VAT repayments for the deliveries that did not transpire. The two men, aged 43 and 50, were found guilty of Cheating the Public Revenue contrary to common law and have received sentences of 30 months and four years. Both have been disqualified from being a company director for periods of up to seven years.
Benedict Babundo and Louis Ovonlen ran Addison Healthcare in Harlow, where they had a contract with the NHS to operate a prescription drug service. They also claimed to be sending back hundreds of thousands of pounds of live saving HIV and cancer drugs to Nigeria. However, on investigation, these claims were proved to be false and it transpires that the two men were creating false invoices so that they were able to reclaim VAT payments.
In total, it was ascertained that the two men had recovered £300,000 in VAT repayments that they were not legally entitled to. As a result, both have been charged with and found guilty of fraudulent activities, both have received prison sentences, and both have been disqualified from operating as a company director for up to seven years.
Mr Ovonlen received a 30 month prison sentence and was disqualified from being a company director for a period of four years. Babundo, the older of the two, was also found guilty and he was sentenced to four years in prison while being disqualified as a company director for a period of seven years.
The two men embarked on a complex fraud by obtaining false documents that appeared to show that the drugs had been exported to Nigeria. They also created false invoices, in order that they would be able to reclaim the VAT that was supposed to have been paid. In total, the two men acquired more than £300,000. On sentencing, Babundo was told that he clearly orchestrated the fraud and that he employed others to do the majority of the work in order that he would not appear guilty.