Shameless family swindled £400,000 in disability benefits and splashed the money on Rolexes, a £24,000 fitted kitchen and lavish trips to Dubai, Las Vegas and Antarctica

Bernard Knutsen dodged taxes over a seven year period while claiming benefits
His wife Maureen helped run his businesses while cheating the benefits system
Their daughter Kelly Knutsen helped her parents launder the excess cash

Published: 16:57 GMT, 2 December 2017 | Updated: 18:08 GMT, 2 December 2017

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A shameless family at the head of a £400,000 benefit and tax fraud ring lived a jet-setting lifestyle while claiming they were unable to work.

Business owner Bernard Knutsen, 68, dodged his taxes over a seven year period - while also claiming Income Support, Council Tax Benefit and later Pension Credit over a decade.

His wife Maureen helped run his businesses, a bar called Chaplin's and a garage in Toxteh, while their daughter Kelly helped her parents launder the excess cash. The women also cheated the benefits system.

The scam came crashing down in April last year, when Bernard, who owned a bar and a garage, and Kelly were arrested in Liverpool and Maureen was picked up at Manchester Airport returning from a holiday to Las Vegas.

Police searched the couple's home in Liverpool and found £39,500 in cash, Rolex watches worth £15,000, and a number of gold sovereigns stashed in Bernard and Maureen's bedroom.

Fraudsters: Bernard and Maureen Knutsen headed a £400,000 benefit and tax fraud ring

Yesterday, Bernard was jailed for four years at Liverpool Crown Court after admitting three tax fraud and six benefit fraud offences.

Maureen, 63, was jailed for three years after a jury also convicted her of benefit fraud and tax fraud.

Mother-of-five Kelly, 39, sobbed with relief as Judge Rachel Smith, sentenced her to 21 months in prison, suspended for two years, after she was convicted of money laundering and benefit fraud.

Kevin Slack, prosecuting, said: 'The fruits of Bernard Knutsen's tax evasion enabled him and Maureen Knutsen to enjoy lavish holidays.

'During the trial, it emerged that the Knutsens had travelled to Dubai in March 2008 and March 2009 to attend the Dubai World Cup (a horse racing event).

'The court will recall the aggrieved tones in which Maureen wrote her subsequent letter of complaint to the travel agents, expressing her dismay at the VIP treatment they had expected not being available to them.'

Spared jail: Mother-of-five Kelly Knutsen

The couple's tax-dodging scheme also allowed them:

Trips to the UAE and USA in 2010 followed by a dream holiday in east Asia which saw them visit Hong Kong, Vietnam, Thailand, Singapore and India in March 2011.
A holiday in South Africa in November 2011, followed by more trips to the USA in 2013 and then a holiday to Argentina, The Falklands and Antarctica in 2014 - all totalling £21,00
A brand new £24,000 kitchen at their home

Mr Slack told the court: 'None of this affluence prevented Bernard Knutsen dishonestly claiming means-tested social security benefits.'

In total, the Knutsens evaded £278,000 in tax on their businesses while Bernard and Maureen received £85,000 in various benefits they were not entitled to.

Mr Slack said Bernard began claiming Income Support in 2004, when he claimed he was unable to work due to diabetes, gout, and spinal injuries.

Bernard claimed to have no savings, no bank account, and failed to declare his income from the garage or Chaplin's Bar, which he bought in 1999.

Between 2009 and 2014, the garage alone brought in over £1.7m revenue, making a profit of £321,000.

Kelly Knutsen, of Anfield, failed to declare paid work at Chaplin's bar and rental income from a property she owned, and illegally received £54,000 in benefits.

She also allowed her bank account to be used to hide £50,000 of her parent's criminal gains.

The court heard that the couple were no strangers to fraud, with Maureen jailed in 2005 for her role in a £1.6m scam involving a crooked Norwich Union worker - while Bernard was convicted of helping her launder money.

Christopher Stables, representing Bernard, told the court his client was in poor health having undergone surgery for both a benign brain tumour and bowel cancer in recent years.

Bernard Knutsen's bar, Chaplin's in Liverpool. He claimed to have no savings, no bank account, and failed to declare his income from the garage or Chaplin's Bar, which he bought in 1999

Mr Stables said: 'Mr Knutsen feels a degree of responsibility for the predicament of his co-defendants, his wife and daughter, particularly his wife, and wishes me to make it absolutely clear he does not blame her and he knows he should take responsibility himself.'

Damian Nolan, representing Maureen, said his client suffered from arthritis and other conditions, and said she still had 'positive elements to her character.'

Louise Santamera, representing Kelly, said her client suffered from anxiety and depression and was now £20,000 in debt relating to council tax arrears and credit cards.

Ms Santamera said Kelly's five children would be hit hard if their mother and both grandparents were jailed.

Judge Rachel Smith, passing sentence, said: 'This was a sophisticated fraud in the sense that property was purchased and placed in alternative names, important licensing and operating regulations were put into other names and money was moved around including in relation to Kelly Knutsen's conviction of laundering the proceeds of the crimes of her parents.'

Kelly was also handed a three month curfew of between 10pm and 7am.