A man and woman involved in a £2.5m tax fraud have walked free from court today after receiving suspended prison sentences.

Richard Safadi, aged 47, and Mandy Galinsky, 53, enjoyed "lavish lifestyles" on the back of unpaid VAT, corporation tax and income tax.

Swansea crown court heard that the taxman lost £2.55m as Penybanc Car Sales and Ammanford Metals Recycling, plus a string of associated companies, turned over £30m without declaring any records or submitting false accounts.

Safadi, of Trem y Coleg, Carmarthen, cheated the taxman out of £888,142 but for five years declared his income as nil.

Galinsky, of Tyrcroes Road, Tycroes, claimed to be making £90 a week.

But, said Ben Douglas-Jones, prosecuting, investigators found £88,000 cash when they raided Safadi's home and £16,500 in Galinsky's house.

And Safadi had bought his home using his wife's name and four other houses and a parcel of land, plus a property in Spain. And he enjoyed holidays in the USA and cruises.

Galinsky, said Mr Douglas-Jones, also invested in property, including a £200,000 house in Kenya, and had Rolex watches, a valuable collection of clocks and £80,000 worth of jewellery. And she her husband, since deceased, drove around in a Rolls Royce Phantom, Porsches and Jaguars.

They both admitted being concerned in the evasion of VAT and cheating the Inland Revenue.

Mr Douglas-Jones said the offending was exposed by the local council's trading standards department, which alerted HMRC who launched Operation Festival.

It was discovered the pair had used a number of "dissolved and then Phoenix" companies to disguise income.

But the main tactic, he added, was simply to not submit any company accounts at all.

He said it was accepted that the driving force behind the scam was Jack Galinsky, Mandy Galinsky's husband, described as a "deceitful and nefarious" man, who was also charged but died before today's hearing.

The court heard that Safadi had repaid the £888,142 in full, thanks to the last minute arrival of a payment of £200,000.

Mandy Galinsky was deemed to have made £296,000 out of her offending and had repaid £80,502 by selling her jewellery. She hoped to clear the debt by selling the property in Kenya.

Giles Cockings, for Safadi, said Jack Galinsky had been a man of "nefarious reputation" and the cheating had been underway before Safadi had joined the companies.

He said he still ran Penybanc Car Sales and hoped he had regained the trust of the court by repaying all he owed.

Benjamin Gordon, for Galinsky, said her husband had been a deceitful and dominating man and she had "fallen under his magnetic spell."

Judge Peter Heywood said it had been a simple but significant fraud on the public purse at a time when everyone was aware of the financial pressures felt by the National Health Service and other public bodies.

But repaying the missing money was a significant factor that enabled him to reduce what would otherwise have been the sentences.

Safadi was jailed for two years, suspended for two years, and Galinsky for 10 months suspended for 18 months.

Judge Heywood said there would be significant legal costs to be paid and the amounts will be decided after further court hearings in 2018.

There is also a Proceeds of Crime investigation underway in the case of Mandy Galinsky.