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Investigations and Prosecutions
PLEASE NOTE: In order to fulfill its duty to protect public funds, the Department for Innovation, Universities and Skills may use information that it holds to prevent and detect fraud. The Department may also share such information, for the same purpose, with other organisations that handle public funds and the police.
The Department is continuing to investigate complaints made against providers and has formally referred over 100 cases where fraud or other criminal activity may be involved to the police.
While the precise extent of fraudulent activity will not be known until investigations are complete, based on estimates and extrapolations, fraud and serious irregularities may be up to some £67 million. In addition, the Department estimates that it has made irregular payments of some £19 million where learning was delivered but where the claims did not fully meet the programme rules, for example, where the provider did not seek the full personal contribution from the learner.
At December 2003, we had recovered some £2.7 million from learning providers; the vast majority was in respect of wrongful claims from public funds. We have not released withheld funds totalling over £16m to LPs that we are investigating. Further cases are still under police investigation or have had charges brought. Some £44 million (including £7.8 million withheld) is involved in these cases.
Decisions on prosecutions are a matter for the police and the Crown Prosecution Service; however we assemble evidence to provide to the police and follow up complaints and irregularities. To date the police have made over 100 arrests resulting in significant charges and convictions.
Additionally, the Department assists in investigations and refers individual cases to the Department of Trade and Industry, Customs and Excise, the Inland Revenue, the Registrar of Companies and the Official Receiver. Our assistance has, for example, aided in the conviction of a learning provider (LP) for acting as a Director while disqualified; the prosecution of a LP Director for acting improperly in the affairs of the company; the prosecution of LP Directors for fraudulent trading; prosecution of a LP sole trader for tax avoidance; and action against a provider for seeking to dissolve a company without following proper procedures.
The Department has assisted in successful prosecutions involving ILA claims in excess of £1.5 million. Convicted learning providers may be subject to compensation or confiscation orders; these funds are returned to Treasury.
We continue to seek the recovery of any payments made on accounts that do not comply with the rules for the programme.