Two Men Jailed for £8.5 Million Teeth Whitening Scam
Tax dodgers funded lavish lifestyles with proceeds from selling dangerous teeth whitening products and planned to build swimming pools shaped like teeth.
Two individuals, Ian Barnes, 53, and Alastair Ramage, 44, have been sentenced to nearly nine years in prison for their involvement in an £8.5 million teeth whitening scam. The pair defrauded taxpayers by importing and selling products containing dangerously high levels of hydrogen peroxide, using the illicit funds to finance their extravagant lifestyles. They also had plans to construct adjacent swimming pools designed in the shape of teeth.
Operating through companies UK Teeth Whitening Ltd and IBAR Trading Ltd, based in Hong Kong and the Seychelles, Barnes and Ramage evaded Value Added Tax (VAT). Her Majesty's Revenue and Customs (HMRC) investigators uncovered that they laundered over £8.5 million through 118 bank accounts, credit cards, and cryptocurrency platforms. A significant portion of this money, more than £3.4 million, was channeled through accounts held with the Euro Pacific Bank in Puerto Rico, which ceased operations in 2022.
The luxury purchases made with the stolen money included a £16,000 baseball cap and a £500 ice cream sundae inspired by the movie "Home Alone." The duo also spent £100,000 with a single holiday company. HMRC seized luxury watches, diamond jewelry, and a gold bar from Barnes and Ramage, who had intended to build neighboring villas in Florida.
During their sentencing at Liverpool Crown Court on Friday, Barnes received a sentence of four years and four months, while Ramage, who had relocated to Portugal, was given four years and six months. Both men had previously pleaded guilty to fraud offenses. WhatsApp messages recovered from their phones revealed callous conversations about their fraudulent activities. Barnes wrote, "In a few hours we’ll be in 1st class, F*** the peasants," and "Platinum luggage tags, that’s how UK teeth whitening roll." The messages also indicated awareness of the dangers of their products and the potential for imprisonment. In one exchange, Barnes noted, "They said they used it for 30 minutes and its taken the enamel off their teeth dentist said they need new teeth." Ramage responded, "We’re on the first plane out of here if they (HMRC) come knocking. We’re talking millions and years in jail."
Zoe Gascoyne, Director of HMRC's Fraud Investigation Service, stated that Barnes and Ramage were aware they were stealing from taxpayers while also selling dangerous products. She added that their communications demonstrated a profound disregard for honest taxpayers funding public services. HMRC intends to work with the Crown Prosecution Service to recover the stolen funds.