Is this fraud?

penniejane

Sorry if this is wrong place to post.
My daughter had a head-on collision in July 2016 and was encouraged by the hospital to take the person to court on a no win, no fee case. She is due to get her money soon. Her father is pressuring her into opening a fake business account to out her money in and he says she can then still claim benefits. 
I am sure this is fraud but I need to get proof so I can show my daughter. She thinks it is fraud too but I want solid proof.
He has done this already with his girlfriend's inheritance while they live together and claim benefits. 

DCFC79

PinkPJs said:

Sorry if this is wrong place to post.
My daughter had a head-on collision in July 2016 and was encouraged by the hospital to take the person to court on a no win, no fee case. She is due to get her money soon. Her father is pressuring her into opening a fake business account to out her money in and he says she can then still claim benefits. 
I am sure this is fraud but I need to get proof so I can show my daughter. She thinks it is fraud too but I want solid proof.
He has done this already with his girlfriend's inheritance while they live together and claim benefits. 

No if it sounds dodgy then its dodgy.
If she had a legit need to claim benefits then do so by the proper channels.
I cant provide proof but Im sure other posters will do so.

Grumpelstiltskin

OP I would put a thread up here.
Benefits & Tax Credits — MoneySavingExpert Forum
Give details of which benefits would be involved as some have a capital limit and others don't.

penniejane

DCFC79 said:

PinkPJs said:

Sorry if this is wrong place to post.
My daughter had a head-on collision in July 2016 and was encouraged by the hospital to take the person to court on a no win, no fee case. She is due to get her money soon. Her father is pressuring her into opening a fake business account to out her money in and he says she can then still claim benefits. 
I am sure this is fraud but I need to get proof so I can show my daughter. She thinks it is fraud too but I want solid proof.
He has done this already with his girlfriend's inheritance while they live together and claim benefits. 

No if it sounds dodgy then its dodgy.
If she had a legit need to claim benefits then do so by the proper channels.
I cant provide proof but Im sure other posters will do so.

By law, as she is currently claiming benefits, once her payment from this case arrives, she must declare it to the benefits system and then live on her payment until it has been spent.  His idea of creating a fake business account would mean that she would still claim benefits, including Housing Benefit, Council Tax Benefit and PIP.  So in essence, she will have her £xxx,xxx.xx in another account AS WELL as her benefits.  Which in my eyes is fraud and if she is caught could potentially be an imprisonable offence.  (We both have ASD so we are very, very honest and this does not sit well with either of us).  I don't think she will do this but I want proof that this is illegal so I can show her.

74jax

I don't think you need to proof to show her, the word is in the sentence - FAKE business account. If you and she doesn't want too, then don't. Her dad doesn't come into it. Does she live with him? 

wannabe_a_saver

Yes that's definitely fraud and she would be in a lot of trouble if she was caught.  Her father wouldn't be the one facing the consequences. 

comeandgo

I don’t understand how you can have a fake business account.  If you are trading as a sole trader then the money has still to be declared and no bank would allow a ltd company bank account without viewing the proper ltd company paperwork.

Pollycat

Grumpelstiltskin said:

OP I would put a thread up here.
Benefits & Tax Credits — MoneySavingExpert Forum
Give details of which benefits would be involved as some have a capital limit and others don't.

^^^^ Best advice.

Your daughter's Father's suggestion of hiding the payout may lead to prosecution.

Of your daughter, not her Father.

If you Google something like this 'benefits and personal injury compensation' all links will tell you that a personal injury payment may affect your benefits.

I believe there is a period of disregard after receiving payment (may be 52 weeks).

The very knowledge people who give advice on the Benefits board will almost certainly know all about this.

They will also tell you that your daughter's Father's suggestion is a pretty good way to get her into trouble with the government department that she may be relying on to give her financial support.

RAS

I don't think PIP is means-tested, but do go over to the benefits forum.

There were a few people who went off on one when anyone asked about capital sums, so take any harsh responses with a bit of a pinch of salt.

It was certainly the case that replacing worn out appliances and furniture with reasonably priced new ones and a moderate holiday were permissible expenses, as in some cases was buying a newer car. Although I recall one lady discovering that paying for a friend to accompany her on holiday was deprivation of assets, so your daughter needs to be clear about the rules.

AskAsk

yes it is fraud.  the benefits people will also find out soon enough.  they have access to almost everything if they start an investigation.

Pollycat

AskAsk said:

yes it is fraud.  the benefits people will also find out soon enough.  they have access to almost everything if they start an investigation.

I've found this on one of the Google search websites:

Who will be notified of my personal injury claim?

As soon as you make a claim for compensation, the insurance company receiving your claim will inform the government via the Department for Work and Pensions (DWP).

The DWP will also be notified by the insurer of any interim payments made to you, and again when your compensation is paid in full.

As soon as your financial circumstances change, it is up to you to tell your benefits agency. If you do not tell them, you are at risk of committing fraud.

https://www.quittance.co.uk/personal-injury/advice/general/does-injury-compensation-affect-my-state-benefits

So it's quite possible that the DWP know about your daughter's claim and the fact that she is about to receive money that may affect her benefits.

I hope the above is sufficient for your daughter to tell her Dad that his suggestion is pants.