A benefits cheat who claimed he was "too ill to work" was found working as a taxi driver, following an investigation by Hammersmith & Fulham Council.

So-called 'crooked cabbie' Thaiar Hammoud cheated his way to more than £54,400 between November 2008 and December 2011 while he was living in Langthorne Street in Fulham.

The 53-year-old, who has since moved to Jellico House in Putney, falsely claimed £35,393 in housing benefit, £3,183 in council tax benefit and £15,858 in income support.

A joint investigation between the council and the Department for Work and Pensions discovered that Hammoud had been working as a taxi driver for Fulham-based London Traffic Cars. The mini-cab firm confirmed he had been working regularly for them as a self-employed driver since October 2004, despite him claiming benefits.

Cllr Greg Smith, H&F deputy leader, said: "Benefits are a safety-net for people who genuinely need them and this deliberate deception was a disgraceful abuse of the system. This proves that it does not pay to cheat and that the truth, and the council, will catch up with you if you have been stealing from taxpayers."

The fraud was revealed when a National Fraud Initiative (NFI) data match showed Hammoud held a taxi driver’s licence but was receiving housing and council tax benefits. In interviews, Hammoud claimed that large sums of cash in his bank account that were being deposited in Fulham had come from gambling winnings and loans from friends.

Hammoud admitted fraud at Isleworth Crown Court on January 27 and is due to be sentenced on February 24.