A tax fraudster who spent over two years evading justice has been extradited back to the UK after being caught due to his email signature, receiving an additional six months on his existing seven-year prison sentence. Craig Rees, 52, fled the country to avoid cross-examination in a case involving a 'staggering and audaciously dishonest' film-related tax fraud.
How He Was Caught
Rees, formerly of Shakespeare Avenue, Warwick, was apprehended in the Czech Republic in March, despite having claimed to be in Ukraine. His location was pinpointed after he sent an email claiming he lacked phone access, only for the message to carry a default signature indicating it was sent from his iPhone, HM Revenue and Customs (HMRC) said.
Extradition and Sentencing
An extradition order was approved by a Czech regional court on 27 March, leading to Rees's return 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 his role in the attempt to steal £1 million.
His trial was told the charges related to inflated or completely made-up claims to HMRC for tax relief for the production costs of three separate films.
Court Proceedings
An HMRC spokesman said Rees was sentenced on Wednesday, with the judge saying it was no coincidence 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 there had been extensive efforts from HMRC's fugitive unit to locate, arrest and return Rees, including work across multiple European jurisdictions.
The judge said Rees had sent a number of messages promising to return but had only been 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 Rees had failed to attend day 51 of his trial in January 2024 and had emailed to say he had travelled to Ukraine, HMRC said.
Further Arrest
The HMRC spokesman said 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, the spokesman said.
The Fraud Scheme
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.
To qualify for Film Tax Relief at the time they made their claims between 2011 and 2015, at least 25% of production costs had to relate to activity in the UK. An HMRC investigation found their 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 movie was produced in the US purely to submit further fraudulent claims, HMRC said.
