The Bulgarian town that thrived on a £200m UK benefits fraud

Sliven, the eighth largest city in Bulgaria, is located at the foot of the Balkan Mountains and serves as the administrative and industrial center of Sliven province. Known for its location in a region famous for wine production, it has recently gained notoriety for another reason.

The city is now notorious for its link to a criminal gang suspected of stealing up to £200 million a year from the UK government through fraudulent benefit claims.

On May 5, 2021, Galina Nikolova, 38, her boyfriend, Stoyan Stoyanov, 27, Tsvetka Todorova, 52, Gyunesh Ali, 33, and Patritsia Paneva, 26, were arrested in London. All pleaded guilty to fraud and money laundering offenses committed between October 2016 and May 2021, with sentencing expected soon.

READ MORE: ‘Eager and tight-knit’ gang of criminals convicted after targeting UK ATMs

The bold scam was discovered by a detective from Sliven, Vassil Panayotov, who became suspicious when he saw locals dressed in designer clothes and an increase in new construction projects. Its investigations revealed thousands of residents were receiving up to £2,500 a month in UK benefits, despite many never having set foot in the country.

Inspector Panayotov alerted the British authorities, which led to the identification of the five Bulgarian masterminds behind the massive fraud, Express reports.

The criminals are believed to have pocketed £54m from their fraudulent activities.

Mr Panayotov revealed to The Telegraph: “I first became suspicious when I started seeing the influx of money into Sliven. I wondered how these people got such money”.

He continued: “When I got that information, I started checking myself and started my own investigation. In the end we came to the conclusion that we are talking about maybe £200 million every year from the UK.”

The inspector alleged that the syndicate served at least 6,000 customers who each paid a single commission fee of between £500 and £800.

In return, they would typically receive between £2,000 and £2,500 per month for a period of sixty days. After this time, the gang would keep the proceeds, amassing enough wealth to live as “barons”.

According to Mr Panayotov, the sudden wealth in Sliven has led to a transformation of the town, with new shops, casinos and properties.

Don’t miss the latest crime stories and court news with our Crime newsletter