The SIA, using its powers under the Proceeds of Crime Act 2002, has reclaimed over £40,000 that was earned through fraudulent activities by former security company boss John Gaines, and has returned it to his victims.
Mr Gaines was sentenced to 4 years and 8 months’ imprisonment in 2019 after being found guilty of 4 counts of fraud by false representation and one offence under Section 16 of the Private Security Industry Act 2001. These involved him employing individuals, who were often vulnerable, on security contracts without paying them the wages he owed them. Gaines also operated under multiple identities to avoid detection.
Following a complex and lengthy investigation, the SIA was granted an Enforcement Receiver Order (ERO) to allow a house part-owned by Gaines in Enniskillen, Northern Ireland to be sold. The payments from this liquidation were received in July 2024, but the final court proceedings for the case concluded in August 2025.
This money has been returned to the 21 victims of Mr Gaines’s crimes. The full amount owed to the 21 victims is £58,140. Gaines remains liable for the outstanding criminal benefit amount and the SIA will act on any new information that could lead to the full recovery of this compensation.
Mark Chapman, Head of Criminal Enforcement at the SIA, said
Mr Gaines deliberately failed to pay the wages he owed to a number of security operatives who worked for his companies across several contracts. When they challenged him, he evaded, threatened, and bullied his employees claiming their work was substandard or that they had the incorrect documentation.
Mr Gaines has been held to account for his crimes, facing the full force of the law, having been convicted by a jury of his peers. We acted using our Proceeds of Crime Act powers to identify money and property held by him. Recovering funds needed to allow the court to compensate his victims from the money that he was ordered to repay.
If any more of his assets come to light, we will not hesitate to take further action to ensure that his victims receive the full compensation they deserve.
In 2022 the court in the Proceeds of Crime Act (POCA) hearing judged that the total criminal benefit from Gaines’s illegal activity amounted to £445,336.84. It heard that Gaines had £91,934.21 available to him following the court finding that he held a beneficial interest in a house in Enniskillen. The amount available was subsequently downgraded due to the deteriorating state of this property.
Background
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the Proceeds of Crime Act 2002 (POCA) sets out the legislative scheme for the recovery of criminal assets, with criminal confiscation being the most commonly used power (confiscation occurs after a conviction has taken place)
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When a POCA Order is made, if it is not paid then enforcement proceedings commence and failing to pay may result in the individual having to serve a default prison sentence by law
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Security operatives working under contract must hold and display a valid SIA licence – read about SIA enforcement and penalties
The Security Industry Authority is the organisation responsible for regulating the private security industry in the United Kingdom, reporting to the Home Secretary under the terms of the Private Security Industry Act 2001. The SIA’s main duties are the compulsory licensing of individuals undertaking designated activities and managing the voluntary Approved Contractor Scheme.
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