Convicted fraudster Christakis Phillipou, and his accomplices, have agreed to pay over £6.5 million towards those they had defrauded, including ABTA.

In the biggest case of its kind, the gang of fraudsters were prosecuted in connection with five holiday companies which, between July 2003 and August 2006, advertised holiday bargains that lead customers to pay for holidays that did not exist.

All of the creditors agreed that members of the public who had lost out should receive full reimbursement.

The £6.5 million sum, agreed at Southwark Crown Court earlier this week, also means that ABTA will recoup a significant portion of the amount paid out in claims.

“This latest development follows on from the gang’s successful prosecution last year and should very forcibly ram home the message to the criminal fraternity, that if they're tempted to target ABTA and our Members, we'll pursue them not just to obtain a lengthy prison sentence, but also do our best to ensure that they don't benefit from the money they've stolen,” said ABTA chief executive Mark Tanzer.

“Head of Financial Services, Mike Monk, and his team, together with the Metropolitan Police, CAA and IATA all deserve great credit for helping to bring this crew to justice.”

Phillipou, Tim Entwisle and Evangelia Liogka were all found guilty of five counts of conspiracy to defraud. A fourth man, Peter Kemp, pleaded guilty to the same offences.

By Bev Fearis