Benefit Cheat Rented Out Spare Rooms

A benefit cheat, who rented out accommodation at his comfortable three-bedroom detached house via the UK's largest spare rooms website during a £15,000 fiddle, has avoided prison with a suspended sentence.

Jobless James Alves, 40, inherited the tenancy to the family home after his mother's cancer death in 2009 and let multiple rooms he advertised on spareroom.co.uk - typically banking monthly rental payments of £450 and £500.

First-time offender Alves, of Manor Road, Cheam pleaded guilty to two counts of failing to notify the Department of Work and Pensions (DWP) of a change of circumstances in his Jobseekers Allowance claim, namely his rental income from sub-tenants between November 28, 2009 and November 12, 2010.

He also pleaded guilty to similarly failing to notify the London Borough of Sutton in relation to his claims for housing benefit and council tax benefit between August 8, 2011 and June 29, last year and making a false statement to the DWP on December 7, 2010.

Camberwell Green Magistrates' Court heard when Alves signed-on for unemployment benefit he declared having two young children, which investigators later discovered were his nephews.

He was caught after the National Fraud Initiative discovered his partner was employed by the NHS and a surveillance operation was mounted, which recorded the various tenants coming and going from the address.

When arrested, Alves, who was overpaid £15,173, said: "I put my hands up. I shouldn't have done it."

He claimed he had insufficient funds to maintain the house and under pressure to raise money decided to let the rooms secretly.

District Judge Timothy Stone told Alves: "There are all sort of mechanisms used here that aggravate the facts.

"It is a serious matter, over a long period of time, and large sums were obtained."

Alves was sentenced to four months imprisonment, suspended for twelve months, and was ordered to complete 180 hours community service work.

Compensation will be pursued separately.