A benefits fraudster was ordered to surrender £6,800 found during a drug raid at his home.

Earlier this year Michael Costellow, 59, of Fellowes Road, Carshalton, was ordered to repay £18,000 to Sutton Council after fraudulently claiming housing and council tax benefits.

During a civil hearing at Sutton Magistrates’ Court, Costellow was ordered to forfeit £6,800 in cash, believed to be the proceeds of criminal activity.

Costellow was also made to pay £3,179 Metropolitan Police Authority costs.

Police raided Costellow’s home during the early hours of April 21, 2008, and found a quantity of drugs, three cars – a Jaguar, a Mercedes and a Jeep – worth £17,000, two bundles of notes in a bedside cabinet and a quantity of £1 coins in two pint glasses in the lounge.

He also had a £10,000 speed boat called Goodnight at a marina where berthing costs are £1,300 a year.

Following the raid, police discovered a bank account containing £55,000, which Costellow also claimed to be from an inheritance. This money continues to be subject of on-going enquiries.

Costellow said he had not worked for 15 years since a motorcycle accident and was in receipt of incapacity benefit, and housing and council tax benefits.

He was arrested after the raid and appeared at Croydon Crown Court in April 2009 where he pleaded guilty to possession of cannabis and to failing to notify changes in circumstances regarding housing and council tax benefits.

He was sentenced to 12 months’ prison, suspended for two years, and was ordered to pay £1,000 costs.

Sutton police financial investigator Detective Constable Ian Davis said Costellow told police the drugs were for his own use and the money was from an inheritance.

Sutton police financial investigation unit’s Detective Sergeant Louis Silva said: “This case is another example of how Sutton’s financial investigation team is working with the community to repatriate unlawfully gained funds.”

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