As a result of his conviction and sentencing, Heaney was banned from being the director of a limited company for 15 years as a judge said he was “no longer a fit and proper person to be a director’
A Derry-born accountant narrowly avoided immediate custody over a six-figure tax scam.
James Joseph Heaney, 56, now of St Michael’s Close, Finchley in London, was handed a 40-month sentence suspended for three years.
He had previously pleaded guilty to cheating the public revenue out of Income Tax, VAT and Corporation Tax, fraudulently claiming tax credit and fraud by false representation.
Heaney further admitted making or supplying articles for use in fraud and two counts of possessing articles in connection with fraud.
The offences were committed on dates between April 6, 2013 and November 19, 2020.
As a result of his conviction and sentencing, Heaney was banned from being the director of a limited company for 15 years as a judge said he was “no longer a fit and proper person to be a director”.
Belfast Crown Court heard that over a decade ago, Heaney, then of Spruce Meadows in Derry, was prosecuted by HM Revenue & Customs in relation to a £70,000 VAT, tax credit and mortgage fraud, codenamed ‘Operation Honeyman’.
In October 2015, he was jailed for six months for the fraud following a further six months on supervised licence on his release from custody.
The court heard that following his sentence, financial confiscation proceedings took place and he was adjudicated to owe £111,245.78p and Heaney made an arrangement with HMRC to repay the money in full.
In April 2018, Heaney paid by cheque the sum of £55,245,78p to the finance branch of the NI Courts Service.
However, within a week he contacted them to say that he had stopped the cheque and then made a further payment for the same amount to the finance branch on a debit card.
It was the prosecution case that there was suspicion around these “strange transactions” and that he had cancelled the original cheque in order to conceal the source of his funds which was a new Barclays bank account.
The prosecution believed that not only did he want to conceal this from HMRC, but he also wanted to conceal his association with Insignia Finance Ltd.
As a result of these suspicions, Operation Honeyman became Operation Hex in March 2017 and a financial investigation was started.
It revealed that Heaney was receiving payments from clients into his bank account in the name of Insignia Financial Ltd.
He was questioned about this but made no comment. The investigation continued and it “established beyond any doubt” his connection with Insignia Finance Ltd.
It also “established beyond any doubt” his criminality in relation to claiming tax credits and failing to fully account for profits he was making.
The prosecution stated: “Since James Heaney’s previous conviction under Operation Honeyman, he has failed to submit accurate details of his self employed incomes as an accountant.
“Nor has he submitted any corporation tax accounts for Insignia Financial Ltd.
“It is believed from the outset of these investigations James Heaney has been submitting false self-assessment returns for himself.
“Banking material obtained shows a regular income into his bank account and he has failed to accurately declare his income to HMRC.
“It is believed James Heaney has failed to declare income for the tax years April 2013 through to April 2019.
“The sums assessed that somewhere in around £389,850 was owed from the fraud.”
Defence counsel Eoghan Devlin said that earlier this week Heaney was diagnosed with Multiple Sclerosis and the defendant was awaiting a prognosis from his consultant.
During his sentencing remarks, Judge Neil Rafferty KC said: “I am satisfied that the defendant continued the criminality after the previous detection and I have to regard that as a significant aggravating factor.”
Judge Rafferty said he noted from the pre-sentence report that Heaney’s wife of 22 year was almost totally dependent on him because of a number of debilitating health conditions.
He stated that he would also factor into his sentencing the recent MS diagnosis by the defendant.
Judge Rafferty said that “not without some degree of hesitation and some degree of hesitation”, he had decided to suspend the 40 month sentence for a period of three years.
He told Heaney: “If you commit any further offence, particularly an offence of dishonesty, you will go to jail for that offence and this sentence of 40 months will be put into operation.
“I will have no hesitation, wife or not, of sending to you to jail for as long as I can.”
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