Two Friends Jailed for Fraudulent BMW Ownership Claims

Two friends, Ethan Smith and Marshall Hayes, have been sentenced to prison for attempting to mislead authorities about the ownership of a BMW vehicle valued at approximately £37,000. Their deception unraveled after a financial investigator raised concerns regarding a purported invoice of sale they presented in Swansea Crown Court.

The court was informed that both men had previously pleaded guilty to conspiracy to pervert the course of justice. A judge emphasized that their actions undermined the integrity of the criminal justice system, necessitating immediate custodial sentences.

Details of the Case

Smith, aged 28, and Hayes, 42, faced scrutiny following a financial investigation into Smith’s prior fraudulent activities. In May 2022, Smith was convicted for operating a business that sold illegal vaping products, generating a net profit of around £50,000 monthly. As part of the investigation under the Proceeds of Crime Act, authorities identified the BMW as a potential asset linked to Smith, despite it being registered to an individual in Scotland.

When questioned about the vehicle, Smith claimed it belonged to Hayes, providing an invoice that investigators later discovered was fraudulent. The document, which appeared to come from a garage in Leeds, was nearly identical in format to other invoices linked to Smith’s financial dealings. Further inquiries revealed that the garage did not sell cars but was solely an MoT service provider.

Sentencing and Reactions

During the proceedings, prosecutor Lee Reynolds presented evidence suggesting that Smith orchestrated the scheme to deceive both the police and the court, with Hayes assisting him. Both defendants had extensive criminal records, with Smith having 13 prior convictions and Hayes 12.

In court, Smith expressed remorse through a letter, attributing his actions to a troubled upbringing and acknowledging the seriousness of his offenses. His barrister, Matthew Comer, characterized the fraudulent invoice as a “very basic document” that was easily debunked.

Hayes’ advocate, Andrew Evans, highlighted his client’s background, noting that he had served in the armed forces before a life-altering motorcycle accident curtailed his military career. Evans argued that Hayes acted out of “misguided loyalty” and that a custodial sentence would lead to significant personal consequences, including loss of employment and housing.

Judge Geraint Walters addressed the defendants directly, condemning their actions as a serious betrayal of the judicial process. He noted the need for a strong message regarding the seriousness of attempting to mislead the court, leading to sentences of 12 months for Smith and 9 months for Hayes, with both men eligible for release after serving half their terms in custody.

The investigation into Smith’s finances continues, underscoring the ongoing efforts to address fraudulent activities within the community.