PROBATE FRAUD - How fake-will fraudsters stole millions from the dead – lawyers can HELP stop it

THE BBC HAS RECENTLY POSTED A NEWS ARTICLE TITLED

• HOW FAKE-WILL FRAUDSTERS STOLE MILLIONS FROM THE DEAD

THE FULL ARTICLE IS HERE:

• https://www-bbc-com.cdn.ampproject.org/c/s/www.bbc.com/news/articles/cx2390x51zqo.amp

THE FOLLOWING IS A CASE SUMMARY AND RISK ANALYSIS OF THE STORY

THE ARTICLE

• HIGHLIGHTS systemic flaws in the probate process, exacerbated by its digitisation, which removed human oversight and enabled fraud.
• Despite some action (e.g., HMRC suspending a property sale), the issue persists, leaving rightful heirs devastated and fraudsters enriched.
• INVESTIGATES a sophisticated probate fraud scheme in the UK, where criminals exploit weaknesses in the probate system to steal millions from deceased individuals' estates.
• FOCUSES on cases in southern England, including:
• That of sisters Lisa and Nicole, who were initially informed they would inherit their late Aunt Christine Harverson’s substantial estate, including a £1m house in Wimbledon. However, a man named Tamas Szvercsok produced a will claiming he was Christine’s “dear friend” and sole heir, despite no evidence of their connection.
• Similar cases involve other estates, such as those of Charles Haxton, George Woon, and Michael Judd, where suspicious wills surfaced, often naming Hungarian individuals as beneficiaries.

KEY FINDINGS INCLUDE:

• Criminals use the public Bona Vacantia register, which lists unclaimed estates, to target estates without wills.
• https://www.gov.uk/government/organisations/bona-vacantia
• Fraudulent wills often contain errors (e.g., misspelt addresses, implausible claims) and are linked to a network of companies, suggesting organised crime.
• The online probate application system, introduced in 2017, lacks robust checks, allowing fraudsters to secure grants of probate with minimal scrutiny.
• Estates are often undervalued to avoid inheritance tax, and properties are sometimes misused (e.g., converted into cannabis farms).
• Handwriting analysis suggests a single individual may be forging multiple wills and witness signatures.
• Victims, like Lisa and Nicole, face significant financial barriers to challenging fraudulent wills through civil courts, and police and probate services often decline to investigate.

RISKS ASSOCIATED WITH PROBATE FRAUD

1. Financial Loss for Rightful Heirs: Fraudulent wills divert estates—often worth millions—to criminals, leaving legitimate heirs, like Lisa and Nicole, with nothing. The high cost of civil litigation (tens of thousands of pounds) prevents many from challenging these claims.
2. Tax Fraud: Fraudsters undervalue estates to fall below the £325,000 inheritance tax threshold, evading significant tax liabilities (40% on amounts above the threshold). This deprives the government of revenue and complicates estate disputes.
3. Property Misuse and Loss: Properties are sometimes ransacked, valuable items are destroyed, or premises are repurposed for illegal activities (e.g., Charles Haxton’s house was used as a cannabis farm), thereby diminishing their value and complicating recovery.
4. Emotional and Psychological Harm: Heirs experience distress and “heartache” from losing expected inheritances and navigating prolonged disputes, as Lisa described the situation as a “nightmare.”
5. Systemic Exploitation: The public accessibility of the Bona Vacantia register and the ease of online probate applications make it simple for criminals to identify and claim estates, with minimal checks to verify their legitimacy.
6. Organised Crime Networks: The involvement of interconnected companies and recurring names (e.g., Szvercsok, Silye, Kovacs) suggests sophisticated criminal networks that disperse funds across accounts, making it harder for law enforcement to trace and recover assets.

WHAT LAWYERS NEED TO DO BETTER TO SPOT AND STOP PROBATE FRAUD

1. Enhanced Due Diligence:
• Verify Will Authenticity: Lawyers should scrutinise wills for inconsistencies, such as misspelt addresses, implausible relationships (e.g., Christine’s “dear friend” Szvercsok), or dates that conflict with the deceased’s circumstances (e.g., Christine’s housebound state in 2016).
• Handwriting Analysis: Engage experts, such as Christina Strang, to examine signatures and detect forgeries, especially when wills share similar handwriting patterns or involve fictitious witnesses.
• Background Checks on Claimants: Investigate beneficiaries and executors, particularly when they have no verifiable connection to the deceased (e.g., checking visitor records for Christine in her care home or confirming Szvercsok’s address history).
2. Improved Scrutiny of Probate Applications:
• Cross-Reference Property Ownership: Verify property claims, as in the case of Roland Silye’s inclusion of an unconnected Hertfordshire house in Charles Haxton’s will. Lawyers should check Land Registry records to confirm ownership.
• Tax Valuation Oversight: Question estate valuations that fall just below the £325,000 inheritance tax threshold, as seen in Haxton’s and Judd’s cases, and request supporting documentation to ensure accuracy.
• Flagging Suspicious Patterns: Identify recurring names, addresses, or company links (e.g., Szvercsok and Silye’s shared company addresses) that suggest organised fraud networks.
3. Advocacy for Systemic Reform:
• Push for Robust Digital Checks: Lawyers should advocate for advanced fraud-detection algorithms in the online probate system, like those used by insurance companies, to flag suspicious patterns (e.g., multiple wills with similar handwriting or beneficiaries).
• Reinstate Human Oversight: Support the reintroduction of in-person evaluations, as suggested by Matt Boardman, to assess executors’ demeanour and legitimacy, which was standard before the 2017 digitisation.
• Collaborate with Authorities: Work closely with HMRC, police, and the probate service to report suspicious cases and ensure follow-up, addressing the current reluctance to investigate (e.g., Lisa and Nicole’s case).
4. Client Support and Education:
• Assist with Legal Challenges: Provide affordable legal options or pro bono support for heirs, such as Lisa and Nicole, who lack the funds to pursue civil action against fraudulent wills.
• Educate Clients on Will Creation: Encourage clients to create and register clear, witnessed wills to minimise the risk of estates appearing on the Bona Vacantia list and becoming targets of fraud.
• Monitor Estate Handling: Ensure properties are not prematurely cleared or sold (e.g., Judd’s valuable heirlooms destroyed or Haxton’s house misused) by overseeing executors’ actions during probate.
5. Proactive Investigation:
• Engage Heir-Finders Responsibly: Collaborate with reputable heir-finding firms like Anglia Research to verify heirs and challenge dubious claims early in the process.
• Monitor Bona Vacantia: Actively track estates listed on the register to identify potential fraud before probate is granted, especially for high-value estates.
• Investigate Company Networks: Use resources like Companies House to trace connections between claimants and suspicious businesses, as Graham Barrow did with Szvercsok and Silye.

By implementing these measures, lawyers can better detect and prevent probate fraud, protect rightful heirs, and advocate for a more secure probate system.

THE FULL ARTICLE IS HERE

• https://www-bbc-com.cdn.ampproject.org/c/s/www.bbc.com/news/articles/cx2390x51zqo.amp