Tax workers in embezzlement scam

The pair admitted the fraud at Edinburgh Sheriff Court

A pair of tax workers made fake claims for disabled children who did not exist as part of a £250,000 embezzlement scam, a court has heard.

Nasir Ahmed, 39, and Imran Ayub, 25, admitted using their jobs at the Inland Revenue in West Lothian to get genuine information about families.

The data was then doctored and money transferred to different bank accounts.

The men, from Motherwell and Glasgow, pleaded guilty at Edinburgh Sheriff Court and will be sentenced later.

The court heard how families who phoned the tax credit helpline in Livingston gave their details - including security passwords - to Ahmed and Ayub.

The pair then gave the personal information to others so they could pretend to be the applicants, call up and claim they had additional children with disabilities.

As a direct result of the various payment diversions made, genuine claimants were temporarily deprived of their tax credits which caused stress and upset Dawn Lewington Fiscal depute

Different bank details were then given and the money was then channelled through other accounts.

Ahmed carried out his part of the scheme between June 2003 and January 2004, while Ayub operated between August 2003 and March 2004.

In total almost £250,000 was siphoned off leaving some genuine families less well-off.

Fiscal Depute Dawn Lewington told Sheriff Isobel Poole: "As a direct result of the various payment diversions made, genuine claimants were temporarily deprived of their tax credits which caused stress and upset.

"These claimants were frustrated by the fact that the Inland Revenue had inaccurate records relating to their personal circumstances. They were forced to make repeated telephone calls and write letters to the Inland Revenue."

She said that they suffered months of upset and stress before their accounts were fixed and their payment resumed.

Sheriff Isobel Poole deferred sentence for background reports until 24 October, saying: "Clearly these are very serious matters."