Customs and Excise is claiming success in its crackdown on missing trader fraud, as three men face possible prison sentences after a multimillion-pound VAT scam.

Robert Paul Vass, alias The Fox, who is known for doing business in lap-dancing clubs and driving a Rolls-Royce, Anthony Perkins, from Cartmel Priory in Cumbria, and Richard Anthony How, from Shefford in Bedfordshire, are all awaiting sentencing for their part in the £16m fraud.

During a six-month trial at Snaresbrook Crown Court in East London, it was revealed that companies, including one called Webnet and another Floven, were used to trade computer components imported from the Republic of Ireland free of VAT.

Customs said it would not comment on the case until sentencing on 23 April, but a representative said "measurable success" had been made against this type of fraud.

"The strategy we have put in place to prevent missing trader fraud has been successful because the amount being evaded has fallen," he said.

"[Resellers] have to be vigilant about who they deal with and be aware of the potential fraudulent activity."

But Phil Stevens, assistant manager at insolvency specialist PKF, said: "It's all very well Customs telling people to be vigilant, but they haven't made it clear what VARs should look out for."

Stevens cited the benchmark Bond House Systems case, when the components wholesaler was forced to pay £13m to the Treasury after unwittingly becoming involved in carousel fraud.

The law established by this case is to be reviewed by the European Court of Justice, as CRN revealed last week.

karl_flinders@vnu.co.uk