John Harrison KC – Defence Representation in Major VAT Fraud Trial known as Operation Barbados.

Operation Barbados has been one of the more significant VAT fraud prosecutions brought before the Crown Court in recent years. The multi-million-pound case, involving an alleged £20 million loss to the public purse, concluded with a series of convictions and sentences for a number of defendants.

John Harrison KC was instructed to defend Darren Wright a key defendant in the second of the four trials for what has been a long-running prosecution series.

The Case: A £20 Million Fraud Against HMRC

According to Crown Prosecution Service, the prosecution centred on the activities of a network of companies that engaged in both genuine trading and fictitious transactions designed to offset VAT liabilities. The scheme used complex financial structures, including offshore accounts, alternative banking platforms, and the creation of artificial “VOIP” trading chains to reclaim VAT unlawfully.

The fraud, which was described by trial Judge Dafna Spiro as “complex and highly sophisticated” saw WNL generating VAT by creating price drops on metals and electrical items they sold via a contrived chain of business transactions outside the UK.

The case formed part of a wider HMRC investigation that saw 20 individuals convicted across multiple trials over several years.

Our Role: Defence of Darren Wright

Darren Wright faced allegations of being involved in the VOIP trading arrangements and associated financial movements. His defence required the unravelling of highly technical financial evidence and the forensic analysis of trading records over a sustained period.

Instructed Counsel: John Harrison KC was instructed as leading counsel for the defence, by Peter Minnikin of McCormick’s Solicitors, Harrogate.

The defence focused on Darren Wright’s actual role within the business structures, the absence of direct involvement in fraudulent activity, and the complexities of the financial flows relied upon by the prosecution.  Specialist forensic accounting and VAT trading experts were instructed to assist the defence in analysing the VOIP trading models and the banking arrangements underpinning the prosecution’s case.

This was a technically demanding trial, spanning months of evidence in which disclosure, financial data analysis and expert evidence played central roles. John Harrison KC’s expertise in serious fraud and financial crime was instrumental in presenting a robust and persuasive defence.

The sentencing of other defendants earlier in the investigation ranged from suspended sentences to more than seven years’ imprisonment, illustrating the seriousness with which the courts and HMRC treat VAT fraud at this scale.  Darren Wright was sentenced to 3 Years 6 Months Imprisonment with a Directors Disqualification Order for 6 Years.

This case demonstrates the increasing complexity of financial crime prosecutions and the importance of experienced legal representation in defending individuals accused of involvement in large-scale economic crime.

At St Pauls Chambers our financial crime team, including leading silks with extensive experience in HMRC prosecutions, is well placed to advise and represent clients in high-value and complex fraud cases. For more information please contact the clerks.