The picturesque town of Consett was a 'showcase' for a large online porn and gambling business
Consett is a town in north-west County Durham, England, about 14 miles (23 km) southwest of Newcastle upon Tyne. According to the 2001 census, it was home to 27,394 residents. The picturesque little town suddenly came into the spotlight after it was discovered that 400 of its residents were directors of around 1,000 companies acting as fronts for online pornography and gambling.
A couple, John Mawson and his wife Sandra, were company directors for years and served 15 businesses in total. John one day discovered he was a director at an online porn company. “We’re supposed to be in name only,” said the 61-year-old retired supermarket worker.
And he's not alone. Nearly 400 residents serve as consultants for businesses with addresses in Consett. These shell companies usually have no real business or staff in Britain, but are conduits for millions of pounds in revenue generated from their online businesses around the world.
Reuters, which ran the story, found that many of Consett's burghers are directors of more than 1,000 businesses that include poker games, pop-up get-rich-quick schemes, health food and medicine vendors and more.
All of Consett's front companies appear to be the work of one man. Simon Dowson, 35, from Shotley Bridge, set up the companies to help online merchants with transactions deemed "high risk" by credit card companies get approved.
Dowson, who lives in a converted farmhouse and drives a black Mercedes AMG, said a UK address makes it easier to accept payments in Europe.
According to a Reuters analysis of the case, at least 429 Consett residents were or are directors of companies served by Dowson. He said that for a “typical company” he collects between £2,500 and £3,000 a year in fees, of which he paid the cost of providing a director, a registered address and a tax return.
He claims he was told that his action was "not the best practice," but "it's not illegal in any sense.".
