Housing benefit fraud**PLEASE HELP

[keithj1983]

Hello, I'm looking for some help and advice. My mum is being investigated for housing benefit fraud. When she first applied for the housing benefit back in 2009 there were no issues. Later I sold a house that I owned and was left with 60k. I deposited the 60k into my mums bank account as I was going travelling the next day for a year. I asked my mum to invest 45k into an account that could not be touched for my future which she done. I also asked her to put the max into an ISA (I think about 7.5k went into the ISA and the other 7.5k is in my mums savings which I advised that she could use if she ever needed to for emergencies as she earns very little. She does have about 2k of her own savings. Problem we have now is my mum is being investigated and has been asked to attend an investigation meeting on thursday for failing to disclose her accounts. The council have told us they know about the the ISA and savings account, they nothing about the 45k that has been tied away. I want to be honest but im worried they will not believe its mine. Has anyone else experienced anything like this? Im afraid I may lose my mums benefits for having over 16k in her name, but it is genuinely my money. I have a bank statement that shows the 60k coming into my account from the sale and then transferring it to my mum, I also have my passport with date stamps to back up my travels.Thank you

[keithj1983]

Hi, has anyone got any help or advice they could share? My mum is really stressing out as the meeting is on Thursday.

[stevepowell1981]

I can only go my what a friend has told me about his situation, he was adopted, found his biological father who passed away not long after they had met, to his surprise his biological father had left him around £40k .. At the time he was unemployed and living with his adoptive parents, he used £10k of the cash to move out of there house, secure his own flat and eventually gained employment. Scared that he would waste the remaining money and wanting to secure some financial future he asked his adoptive parents to keep hold of £30k for him basically so that he didn't just use it for nothing .. His adoptive parents were on full housing benefit, and as you mentioned in your post were called for an investigation regarding housing benefit fraud. They claimed that the £30k was there adoptive sons money and they had no intention of using it at all they were just looking after the money for him! It resulted in them being charged with benefit fraud as the investigators said that the money in there saving account was basically gifted to them and they failed to declare there finances.

They ended up appealing the decision, which cause a lot of stress and financial problems, with them having to borrow the money off there son to repay the fraud. Eventually it went to tribunal and they won, although it took nearly 18 very stressful months and a lot of work by there solicitor .. the tribunal was eventually ordered to pay back all the money that they had originally been told was fraud.

A very long process and I would strongly advice you or your mother to seek legal advice before she goes to the investigation!

[silverfox1961]

Hi,

I have alerted the a member of the site team who may be able to offer some advice.

 

I do hope you are going to accompany her and take all the proofs that the cash is yours.

[id6052]

whose name was the 45k invested under?

whose name was the ISA under?

did your mother use any of the 7.5k that was left in her savings accoun?

did your mother declare any of these moneys to DWP or LA?

 

did your mother complete any review forms or claim forms after receiving the money?

[keithj1983]

Hello, I really appreciate the response. It's very similar to our situation in a way, I have evidence that I sold the house and money going into my bank account, I also have evidence of transferring it to my mum, my mum then invested 45k which is untouched and still in that account, the other 15k is split 50/50 between an isa and online savings account, the isa has hardly been touched, the online saver has regular activity so this will prove hard to confirm this is my money although both accounts still hold roughly 7.5k each. I feel as though I have to tell the council everything as they will find out. Our solicitor has already advised her belief is that it will go to court. I don't think my mum will be able to handle 18 months of more worry. I just don't know if they will accept it's mine with the evidence I have. Did you friend have evidence the money was his? Bank statements etc?

[keithj1983]

Hi, all the accounts are in my mums name as she set them up while I was travelling. The 45k is untouched, the isa is pretty much untouched but the 7.5k in savings account she used regular and replaced so the balance 5 years on has remained at roughly 7.5k, I don't know if that proves in anyway it was my money and it was not hers to spend without replacing?

We did not inform the council because we just did not think about it.

[stevepowell1981]

Yes my friend had a lot of evidence that the money came from his biological father to him and then from him to his adoptive mother. What was hard to prove was why he gave them the money .. they were insisting it was a personal gift and therefore as they had access to the money it was theres to use as they wished!

[keithj1983]

Thank you, yes I will most definitely be attending, I feel responsible that my mum could lose her benefits and be fined/prosecuted. I've got as much evidence as possible and a supporting letter as I'm not allowed to speak as it's not my investigation. It's a meeting being recorded

[keithj1983]

I have proof of house sale, money from solicitor into my account and then money going into my mums account. The money is now tied up. My reason I transferred it is because I went travelling the next day so my mum was the most logical person to give it to so it was safe while I was away, I was worried about possible fraud etc. as I was away my mum had to invest the money in her name, I have my passport stamps but not much more

[id6052]

this could be viewed in either way, so i can understand your concern

 

with the 7.5k in your mum's account which she used (as and when needed) - i suspect a decision-maker may find this to be your mum's capital

 

with the other moneys, if your mother has made no use of them, it may be easier to argue that your mum was holding the money in trust for you

 

the council will probably want to know why it was not practicable to put moneys investments/isa in your name

[id6052]

as for attending the IUC, the council might not allow you to sit in on your mum's interview, if they plan to interview you separately

[stevepowell1981]

I am assuming they will interview your mother under caution, and the only person allowed in the room with her would be a solicitor, am pretty sure they will also seperatly interview you, which is when you can provide them with your documentation.

[caro]

A friend of mine had a similar problem. She had a joint account with her mother and we managed to prevent her having to pay some back. I wouldn't like to say how it might go for your mother.

 

I think you'll find they will know about all the money.

 

FWIW this is my friends experience. http://www.consumeractiongroup.co.uk/forum/showthread.php?325989-Benefits-being-stopped-and-massive-bill