A multibillion-pound mining firm, Gofer Mining plc, has been exposed as a firm with a fake audit and a true threat to tax fraud in the UK.
At first glance, Gofer Mining appears to be just another large corporation, with its headquarters located in Canary Wharf and interests in mining in various parts of the world, including Greece, Congo, Kenya, Greenland, Tibet and Ukraine. However, a closer inspection reveals the company’s true colors – it has not filed accounts for several years, and its director, the “Duke of Commonwealth,” appears to have declared his own country, the Union State of British Commonwealth.
According to the company’s account files, Gofer Mining has nearly 4,000 employees and has issued over 10 million passports in its new country. Gofer Mining’s involvement in a high-stakes attempt to seize control of a Ukrainian goldmine in 2020 highlights concerns over weak checks and a lack of enforcement at Companies House, the UK’s official register of companies.
Investigations conducted by Dan Neidle, a former senior tax lawyer and founder of the Tax Policy Associates thinktank, have revealed evidence suggesting that Gofer Mining’s accounts have been falsified. Further concerns arise from Neidle’s findings that Gofer Mining was audited by a firm linked to its own director, Michail Roerich, rather than an independent auditor. There is no evidence of the named auditor, accounting firm Smith Barclay LLP, and its address is completely fake.
Gofer Mining has a complex network of other companies associated with it, collectively claiming to have billions of assets on their balance sheets or tied up in shares. Furthermore, the firm has a past association with the now-defunct British Technology Bank, which claimed to be part-owned by the Bank of England.
Roerich denied any involvement in falsifying the company’s accounts and instead stated that the company was being exploited by criminals. However, an investigation by The Observer found that the company’s Auditor, James Whitelaw, has no trace and the named accountancy firm, Smith Barclay LLP, was actually an offshoot of his partner, Roerich’s, current employer. Moreover, a warning notice from the FCA has also noted non-autorisation. Gofer Mining remains active despite prompt action being urged.
The case highlights concerns over weak checks and a lack of enforcement at Companies House and questions around the veracity of audited accounts in the UK. Neidle stated that the UK is a “business centre” that fraudsters find particularly vulnerable and allured by Companies House’s access, independence, and reputation. Therefore, improvements are necessary to prevent fake auditors and document arrangements. Campaigners including Dan Neidle, warn that Companies House should not leave loopholes like loopholes against fraudulent entities.
In response to the allegations, Companies House stated that they take fraud allegations seriously and that they are developing systems and processes to determine the accuracy of information.
