Sneaky Leeds University students used 'loophole' in train-delay scheme to defraud companies of £140,000
Two international students at Leeds University managed to defraud train companies of more than £140,000 using a sophisticated refund scam based on train delays.
Chinese students Li Liu and Wanqing Yu, who lived together in university accommodation “exploited a loophole” by seeking refunds on train tickets.
But before the money was paid back, they would then seek compensation through the delay-repayment scheme, Leeds Crown Court was told.
When British Transport Police finally arrested the pair earlier this year, it was found that 26-year-old Liu had illegally acquired £141,031, while 25-year-old Yu had received £15,712.
The pair, who were both held on remand since their arrest, admitted charges of conspiracy to defraud and possession of criminal property.
The court learned that the pair, who lived as student flatmates on The Plaza, on Clay Pit Lane, Leeds, had multiple bank accounts and had created 16 fictitious people to help conceal their fraud.
They also used a 20-SIM card adapter in a single phone so they could closely monitor their scam and make it appear contact was from different phones and people.
They had even researched services all across the country which were often late and they would buy tickets in advance.
When the trains were late, they would apply through the national scheme for compensation, having already claimed a refund for the tickets.
Their scam was first realised by CrossCountry Trains, but several others were also affected. It was found that the scam was in operation since 2021.
The court heard that Liu, who had no previous convictions, had started a one-year course at Leeds University last year. He had previously applied for an advanced computer science course at Birmingham University.
Yu, who also had no previous convictions, was on a one-year English-teaching course at Leeds.
Both gave a no-comment interviews after their arrest.
Mitigating, Justin McClintock said Liu would “carry the remorse and shame for the of his life”. He said there was a “much more positive side to his character than reflected by his offending”.
He said that Lui also wants to return to China to reunite with his family.
Little mitigation was offered for Yu after Judge Howard Crowson said her sentence would mean she is released imminently due to time already served on remand.
Judge Crowson told them: “You identified a weakness in the system, and between you, you abused that weakness.
“There was some sophistication, you created false identities and created a large number of bank accounts in order to conceal that you were behind the fraud.”
He jailed Liu for 30 months, and Yu for 17 weeks.