27.06.14 HMRC Calls 'Cut' on Film Fraudster

Damita Nikapota, who received £1.6m in VAT repayments from HM Revenue and Customs (HMRC) by falsifying claims based on fictitious film production costs, has been jailed for three years.

Mr Nikapota made a number of fraudulent VAT repayment claims beginning in 2006 via his Los Angeles based film company, AS Productions. He spent the proceeds of his crimes on a ‘Hollywood lifestyle’ buying villas and travelling to places such as the Cannes Film Festival. Mr Nikapota would claim VAT repayments on supposed production costs such as the employment of Hollywood actors and work on adaptations of books by well-known authors. He even went so far as impersonating other Hollywood producers, some of whom were deceased, when he contacted HMRC to query his claims.

On 29 April 2014 he was arrested when visiting the UK. On the same day he was charged and pleaded guilty to three counts of fraud, cheating the Public Revenue and money laundering.