A tax fraudster who evaded justice for over two years has been extradited back to the United Kingdom after being caught due to an oversight in his email signature. Craig Rees, 52, received an additional six-month prison sentence on top of his existing seven-year term for his role in a film-related tax fraud described as “staggering and audaciously dishonest.”
The Fugitive’s Downfall
Rees, formerly of Shakespeare Avenue, Warwick, fled the country to avoid cross-examination in his trial. He was apprehended in the Czech Republic in March, despite having claimed to be in Ukraine. HM Revenue and Customs (HMRC) revealed that his location was pinpointed after he sent an email claiming he lacked phone access. However, the message carried a default signature indicating it was sent from his iPhone, leading authorities to his whereabouts.
An extradition order was approved by a Czech regional court on 27 March, and Rees was returned to the UK on 9 April. He subsequently admitted a bail offence, resulting in the consecutive six-month term. He had previously been sentenced in his absence to seven years in 2024 for attempting to steal £1 million.
The Fraud Scheme
Rees’s trial heard that the charges related to inflated or completely fabricated claims to HMRC for tax relief on production costs for three separate films. To qualify for Film Tax Relief at the time of the claims between 2011 and 2015, at least 25% of production costs had to relate to activity in the UK. An HMRC investigation found that the claims were fraudulently inflated for the first film, which was moved to the United States. The second film was entirely made up, and the third was produced in the US solely to submit further fraudulent claims.
Court Proceedings
An HMRC spokesman said Rees was sentenced on Wednesday, with the judge noting it was no coincidence that the fraudster had deliberately departed to prevent cross-examination of evidence he had given and avoid “facing the gaping holes” in his account. The court heard that extensive efforts from HMRC’s fugitive unit were required to locate, arrest, and return Rees, including work across multiple European jurisdictions.
The judge stated that Rees had sent several messages promising to return but was only brought back to the UK due to “significant time, resource and expense” on the part of the relevant authorities. Ben Close KC, prosecuting, told the court that Rees had failed to attend day 51 of his trial in January 2024 and had emailed to say he had travelled to Ukraine.
Related Arrest
The HMRC spokesman added that officers had also arrested a 36-year-old man in Manchester on Thursday on suspicion of assisting an offender in connection with the inquiry. The man has been questioned and released under investigation.
Rees and his 54-year-old brother Carl Rees, who was also jailed for seven years in 2024, were both convicted at trial of two counts of conspiracy to cheat the public revenue. Jurors were told the brothers submitted fraudulent Film Tax Relief and VAT claims.
