A millionaire fraudster from Staffordshire has been ordered to pay back £26 million of the money he stole from the public purse to fund his lavish lifestyle or face a further 10 years in prison.

Craig Johnson, who owned the £3 million stately home Meaford Hall, near Stone, is already serving twelve-and-a-half years behind bars for his role in leading an organised crime gang that stole £138 million from the taxpayer in a “missing trader” VAT scam.

The scam funded a champagne lifestyle which came complete with a fleet of flash cars, a helicopter, yacht, two luxury homes and expensive jewellery.

The fraud involved importing VAT-free mobiles from the European Union, selling them off to dummy companies and then claiming the VAT back from the Inland Revenue.

The gang divided the proceeds, laundering cash through false accounts in Eastern Europe, Gibraltar and Hong Kong.

But a confiscation order has now been granted at Wolverhampton Crown Court, forcing Johnson to pay back £26 million made from the scam. His restrained assets include his Staffordshire home as well as a Ducati, an Aston Martin, a Ferrari and two Bentleys.

Robert Alder, assistant director of criminal investigation for HM Revenue and Customs, said after the hearing: “This is one of the largest thefts from public funds that has been brought before the courts following our investigations.

“It has resulted in one of the longest prison sentences and one of the largest confiscation orders ever secured. The outcome of our investigations will result in vital funds being restored to the nation for investment in public services.”

Johnson must pay back £8 million within the next 12 months and the remainder within a further 12 months. Johnson was part of a 21-strong gang all given lengthy jail sentences after being found guilty of taking part in the scam.

By Wyn Matthews