Four people including three company directors have been sentenced today at Leeds Crown Court to various terms of imprisonment for a multi million pound fraud on three financial institutions.
This followed a trial of two of the defendants at Leeds Crown Court which concluded yesterday with Jury verdicts of guilty.
Two defendants had already admitted their parts in the fraud before trial each pleading guilty to six separate counts of fraudulent trading.
The four defendants are:
Anthony Prudhoe (date of birth 07.12.1946) from Northumberland: Chairman of EWEand InterGB group of companies. He controlled the group of companies and was primarily responsible for planning and executing the fraud.
He pleaded guilty in March 2007 one month before trial to 6 counts of fraudulent trading and was sentenced today to 7 years imprisonment.
Michael Bird: (date of birth 30.01.1958) from Durham. Managing Director of the EWE / InterGB group.
He pleaded guilty in March 2007 one month before trial to 6 counts of fraudulent trading and was sentenced today to 2 years imprisonment.
Mark Barrington Grainger: (date of birth 21.11.1964) from Stockton on Tees. Commercial Director of the EWE / InterGB group.
He was found guilty at trial on 6 counts of fraudulent trading and was sentenced today to 2 years and 3 months imprisonment.
Linda Straughan: (Date of birth 19.03.1947) from Gateshead. Personal assistant to Anthony Prudhoe.
She was found guilty at trial on 6 counts of fraudulent trading and was sentenced today to 2 years imprisonment.
Background
The fraud operated between 1996-2000 via a number of companies collectively known as Engineering with Excellence ("EWE") and then later InterGB group operating from head offices based in Newcastle.
The companies primarily worked within the engineering sector, often on projects connected with the UK oil and power generation industries.
The defendants extracted large amounts of money from three financial institutions via the submission of over a thousand false invoices pursuant to an invoice discounting facility.
Over £85 million of false invoices were submitted to Riggs Bank Europe Limited, NMB Heller Limited and Banca Nazionale Dell Agricoltura over the period of the fraud. The net loss to the 3 finance houses was over £7.5 million.
The fraud enabled the defendants to enjoy a successful business lifestyle, including corporate entertainment, good salaries and expensive company cars.
By 2000 various EWE / InterGB group companies were in liquidation.
Proceedings
The Serious Fraud office and Northumbria Police Economic Crime unit commenced a joint investigation in June 2000.
During the investigation one of the defendants Anthony Prudhoe fled abroad and was eventually traced to Jordan where he had married and converted to Islam.
He was deported from Jordan to the UK in July 2006 following liaison between the SFO, Foreign & Commonwealth office and Jordanian authorities.
The defendants were all charged in July 2006 with various counts of fraudulent trading and conspiracy to defraud.
Sentencing remarks
Passing sentence HHJ Durham - Hall described Prudhoe as a cynical and corrupting fraudster.
Confiscation
The Serious Fraud Office has commenced confiscation proceedings against all of the defendants. The hearing in relation to this issue will take place at a later date.
Serious Fraud Office
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10-16 Elm Street
London WC1X 0BJ
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