A BLACKBURN fraudster labelled 'The Lying Dutchman' has been jailed for ripping off employment agencies of £197,000.

And four more people from the town have also been sentenced for laundering the ill-gotten cash.

Edward Van Vessem, 32, of no fixed abode but formerly of Blackburn, used the money to fund a lavish lifestyle, renting a riverside apartment in Liverpool and enjoying expensive champagne meals at fashionable city centre restaurants.

A police investigation began in 2007 into a number of frauds committed on employment agencies throughout the country and it became clear that Van Vessem was behind them.

His knowledge of how the agencies made payments to tradesman on behalf of third parties helped him commit the frauds and he recruited others who allowed large amounts of money to be transferred into their bank accounts.

He and his gang were arrested in October and November last year.

Van Vessem admitted obtaining £197,000 by fraud and was sentenced to three years and eight months in prison.

Thomas Maher, 30, of New Chapel Street, Blackburn pleaded guilty to money laundering and was given a two-year community order and an 18 month drug rehabilitation order.

Andrew Smith, 32, of Angela Street, Blackburn was sentenced to eight months in prison which was suspended for 18 months.

He was also given an 18-month supervision and drug rehabilitation order.

Donna Hope, 32, of St Aidens Avenue, Mill HIll, Blackburn was given an 18 month community order and ordered to complete 150 hours of unpaid work.

Lorraine Flynn, 31, of New Wellington Street, also Mill Hill, was given an 18-month community order and an 18-month supervision and drug rehabilitation order.

During sentencing Judge Cornwall described Van Vessem as a “professional fraudster and the driving force for this sophisticated and prolonged fraud who had frittered away the money living the high life”.

Detective Superintendent Dave Brian, head of Lancashire Constabulary’s Serious and Organised Crime Unit, said: “Inquiries will continue to trace any assets in respect of all the defendants and we will use current legislation to financially disrupt them following their convictions as this helps to reduce harm in the community.”

“I would advise companies to consider using Companies House Webfiling, an online filing service designed to reduce fraud."

More information can be obtained at www.companieshouse.gov.uk.