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Students warned not to cheat the Benefits system

March 13, 2009
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Newham Council is warning students not to claim Benefits illegally, or they face a criminal conviction, which may affect their future employability.

The warning comes after two students were prosecuted for fraudulently claiming Housing and Council Tax Benefits.

Student Abul Hussain, 28, of Millennium Close, Canning Town was given 40 weeks suspended sentence and 150 Hours Community Order.

Investigations by the fraud team found he had claimed £10,785 in Housing Benefit while failing to declare he was in full-time education and in receipt of grants and loans.

Appearing for sentencing at Inner London Crown Court on February 23, Hussain pleaded guilty to four charges of dishonestly obtaining Housing Benefit, with one charge to be laid on file.

The court heard how Hussain obtained Housing Benefit from 2004 to 2007. On his claim forms, he declared his only income as Job Seekers Allowance and continued to receive benefits.

Since his guilty plea in January, Hussain has started repaying the monies that he received fraudulently. Having taken his current financial situation into account, he was not ordered to pay any costs or compensation.

In another case, Mohammad H Rahman,33, of Edwin Avenue, East Ham was ordered to perform a 100 hours community order and made to pay £1,000 costs for illegally claiming £16,865.83 in Housing and Council Tax Benefit while he was receiving Student Loans and Grants.

On February 25, Rahman appeared at Stratford Magistrates' Court where he pleaded guilty to ten charges of fraudulently obtaining the Benefit money.

The council's fraud team identified the fraud when they cross-referenced records that identified Rahman as being a student. The money is being recovered by deductions from his ongoing benefit entitlement.

Executive member for finance, Councillor Lester Hudson, said: "Many students will experience some financial hardship, however, that is no excuse for breaking the law.

"Benefit fraud is stealing from the public purse. This is money that is meant for services such as schools, libraries and social care.

"Both students will now have a criminal conviction, which could impact on their future employability.

"We will not hesitate in prosecuting anyone who is caught committing fraud."

People who suspect others of committing Housing Benefit or Council Tax fraud can contact the fraud team in confidence by emailing: fraud@newham.gov.uk or by calling freephone 0800 052 2420.

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