Four men have received prison sentences exceeding 22 years for an £8.8 million VAT fraud in Scotland. The case involved a West Lothian payroll company that served 27 employment agencies. According to HM Revenue and Customs, the men charged VAT on payroll services. However, they did not pass the money to HMRC. Instead, they used the proceeds to fund luxury purchases. These purchases included gold bullion, diamonds and expensive cars.
£8.8m VAT fraud scheme
Leslie Thompson, Graeme Cullen and Graham Newall faced prosecution over the VAT fraud. The scheme operated between September 2015 and June 2017. Meanwhile, Martin Lang admitted a more limited role in the fraud. His involvement covered the period between February and December 2016. HMRC said Lang admitted stealing £4,813,493.
The four men worked with Linear Services, a West Lothian-based payroll business. The company provided payroll services to 27 employment agencies. According to the prosecution case, the business charged clients VAT on its invoices. However, the company did not pay the VAT to HMRC. Instead, the offenders diverted the money for their own purposes.
Men sentenced at Glasgow High Court
The court sentenced all four men at Glasgow High Court on 21 April 2026. Leslie Thompson, aged 63, received a seven-year prison sentence. Graeme Cullen, aged 54, received a six-year prison sentence. Graham Newall, aged 49, received a five-and-a-half-year prison sentence. Martin Lang, aged 68, received a four-year-and-three-month prison sentence. Together, the four sentences exceed 22 years.
How the VAT fraud operated
The scheme centred on VAT charged through payroll service invoices. The offenders should have paid that VAT to HMRC. Instead, they diverted the money to themselves and other associates. The prosecution also linked the proceeds to expensive lifestyles. For example, the men spent money on gold bullion and diamonds. They also purchased luxury vehicles and spent money on overseas trips. The court heard further evidence about expensive properties and other spending.
HMRC investigation
HMRC’s Fraud Investigation Service investigated the VAT fraud. Meanwhile, Police Scotland’s Specialist Crime Division worked with HMRC. The investigation examined the financial arrangements surrounding the payroll business. Investigators also examined how the offenders handled the VAT proceeds. Ultimately, the investigation led to convictions and prison sentences for all four men.
Serious organised crime connection
The court heard evidence linking the offending to serious organised crime. The prosecution also described sustained dishonesty over an extended period. Furthermore, prosecutors presented evidence about the movement of the fraud proceeds. The court considered the scale and circumstances of the financial offending.
Leslie Thompson’s previous VAT conviction
Leslie Thompson was already serving a six-year sentence for another VAT fraud. That earlier case involved a separate multi-million-pound tax fraud. HMRC said the earlier case involved a network of company directors. Thompson’s wife, Beverley, also received a two-year suspended sentence.
Defence submissions
Thompson continued to maintain his innocence during the sentencing proceedings. His defence told the court that he had lost, or faced losing, his family home. Meanwhile, Cullen’s defence highlighted his previous employment with accountancy firms. His lawyer also referred to an assessment of his future offending risk.
Lang’s defence said he had accepted responsibility for his involvement. His lawyer also told the court about his health. Newall’s defence said people described as having bad character had influenced him. His lawyer said Newall felt genuine remorse for his actions.
Impact on public finances
VAT contributes to the UK’s public revenue. Therefore, businesses must account for VAT according to HMRC requirements. When businesses charge VAT, they generally must account for that tax to HMRC. In this case, the prosecution said the offenders diverted VAT instead. HMRC continues to investigate suspected tax fraud and related financial offences.
What happened in the Scottish VAT fraud case?
Four men received prison sentences after a payroll-related VAT fraud involving £8.8 million. The case involved Linear Services and a West Lothian payroll operation. The scheme operated between 2015 and 2017. Three men faced conviction following a trial. Meanwhile, Martin Lang pleaded guilty to a more limited role. The court sentenced all four men in April 2026.
Where did the VAT fraud take place?
The case involved a payroll business based in West Lothian, Scotland. The court sentenced the defendants at Glasgow High Court. HMRC investigated the financial fraud with support from Police Scotland.
How much VAT did the scheme involve?
The main fraud involved more than £8.8 million in VAT. HMRC said Martin Lang admitted stealing £4,813,493. The four men received combined prison sentences exceeding 22 years.
Editorial note
This article is based on information released by HM Revenue and Customs and reporting about the court proceedings. The news does not suggest any connection between this case and other people who share similar names.
