Two Merseyside men have been jailed for a multi-million-pound teeth whitening scam that funded luxury holidays and goods. Ian Barnes, 53, and Alastair Ramage, 44, failed to pay £8.5m in VAT and income tax, using the money on expensive items including a £16,000 baseball cap.
Offshore companies and dangerous products
The pair imported and sold teeth whitening products they knew contained dangerously high levels of hydrogen peroxide. The products were sold through two companies, UK Teeth Whitening Ltd and IBAR Trading Ltd, based in the Seychelles and Hong Kong.
They failed to pass on VAT to HMRC and spent taxpayers' money on jet-ski holidays and luxury goods. The pair had also planned to buy neighbouring luxury homes in Florida, connected by a tunnel and with matching swimming pools in the shape of teeth.
Money laundering and hidden accounts
HMRC found Barnes and Ramage had laundered more than £8.5m using 118 bank accounts, credit cards and crypto platforms. They funnelled over £3.4m of stolen money to accounts at Euro Pacific Bank in Puerto Rico, which were shut down in 2022.
A WhatsApp conversation between the two men revealed they knew the products were dangerous. In one message, Barnes said: "They said they used it for 30 minutes and it's taken the enamel off their teeth dentist said they need new teeth." Ramage also stated: "We're on the first plane out of here if they (HMRC) come knocking. We're talking millions and years in jail."
Sentencing and recovery efforts
Both men pleaded guilty to VAT fraud in September. Barnes was sentenced to four years and four months at Liverpool Crown Court, while Ramage received four years and six months for the same charge.
Zoe Gascoyne, Director of HMRC's Fraud Investigation Service, said: "Barnes and Ramage knew they were stealing from taxpayers and selling dangerous products at the same time. Their messages show complete disregard for the hard-working majority who pay the taxes that fund our public services. Hiding stolen money in offshore accounts doesn't put anyone beyond reach and my team will now work with partners at the Crown Prosecution Service to recover the money they stole."
