Community order needed - fine is too easy for him

A property developer with a £500,000 nest-egg has been convicted of falsely claiming benefits.

Geoffrey Berg, of Carnatic Road, in Mossley Hill, appeared at Liverpool Magistrates’ Court where he admitted falsely receiving the government hand-outs, totalling £10,799, between February, 2003, and March, 2010.

District Judge Ian Lomax ordered Berg to pay back the whole amount, and said at least £5,000 was to be paid within a month.

He was also fined £5,000 and ordered to pay the council’s costs of £1,228.

Berg owned two flats on the street where he lives – he resided in one and the other, which he has since sold, he rented out for £1,000 a month.

An investigation by Liverpool City Council’s benefit fraud team found that Berg bought the apartment he lived in with cash.

He then sold his previous home, making a profit of £70,000.

Following this, he was able to make a second cash purchase of another flat for £205,000.

When he was investigated, Berg was found to have around £200,000 in capital. Along with his own flat, his total worth was around £500,000.

Anyone with savings of more than £16,000 is not eligible for council tax benefit.

• Everyone convicted of benefit fraud who doesn't go to prison should have to do unpaid work.
  
  Benefit thieves should also have to repay twice what they've stolen, and should not be eligible for any further benefits – including tax credits - until they have. A confiscation order should be automatic and immediate.
  
  If you don't punish people who are convicted of an easy crime, the offence will continue to look attractive.