Men in pub said Vat scam could net €10k a week, court hears

A Clare builder was told by two individuals in a pub that he stood to make between €2,000 and €10,000 per week if he participated in an alleged Vat scam.

Ennis Circuit Court heard the details of a Sept 2000 meeting at Burke’s pub at Ardrahan, Co Galway where Derek Floyd, aged 34, of 21Lower Main St, Tulla, allegedly agreed to take part in the alleged scam.

In an interview with Revenue inspector Michael Downey in May 2004 read out in court yesterday, Mr Floyd said: “They told me that I could earn between €2,000 and €10,000 a week doing this and there would be no comeback on it.”

Mr Floyd told Mr Downey: “I agreed to go along with their plan.”

In the case, Mr Floyd denies fraudulently claiming Vat refunds totalling €683,138 from Revenue.

State counsel, Alex Owens SC, has told the court Mr Floyd created bogus invoices totalling €10.1m to fraudulently claim the Vat refunds.

In an interview with Mr Downey read out in court yesterday, Mr Floyd said that he “accepted that the purchase and sales invoices issued on foot of the arrangement I had the two [named individuals] were bogus”.

In evidence yesterday, Mr Downey said that the Vat returns made by Mr Floyd before the trial were “a work of fiction”.

Mr Owens said that “the fraudulent paper trail of invoices was used and these returns were made making various false claims” to receive the Vat sums from Revenue.

Mr Owens told the jury: “Not only was Vat not paid, Mr Floyd knowingly and fraudulently claimed money for refunds which we say he knew he wasn’t entitled to.”

The trial continues.