13 Apr 2011

UK hacker receives prison term for tax scam

Nikola Novakovic was recently sentenced to three years and three months in prison after executing a self-assessment tax fraud scam in London by implementing a computer virus.

Novakovic, 34, also conspired with 28-year-old Oleg Rozputnii to register more than 1,050 fake taxpayers on the Income Tax Assessment system through 200 fraudulent bank accounts, stealing more than $5 million. Rozputnii was living illegally in the UK and transferred money back to Ukraine. Details were extracted from computers using an unspecified computer virus.

The two men pleaded guilty last month at a hearing and were recently was sentenced at Harrow Crown Court.

“They used their illegal profits to fund lavish lifestyles, buying performance cars including Porches, Mercedes and Jaguars,” said Joe Rawbone, assistant director of HMRC Criminal Investigation. “HMRC takes tax fraud extremely seriously and we will recover any financial gain from this criminal activity."

A hacker in the United States also was sentenced last month. Jesse William McGraw, hacker and former leader of anarchist group the Electronik Tribulation Army received nine years and two months for installing malware on computers in a Texas hospital.