Two members of a 21-strong criminal tax fraud gang have been ordered to re-pay a record £92.3 million in the biggest ever confiscation order secured by HM Revenue & Customs (HMRC).
The gang bought luxury houses in London, high performance cars, and built blocks of flats in Dubai after stealing £37.5 million in a ‘missing trader’ VAT tax fraud.
The two men, Syed Ahmed of Buckinghamshire and Shakeel Ahmad of Middlesex, are currently serving seven year jail terms. They could face a further ten years in prison each if they fail to repay the £92.3 million within two months. Even if they do spend an additional ten years in jail, the judge stated that they will still have to pay back the money.
Investigations began in April 2002 into the ‘missing trader’ fraud, involving the dishonest manipulation of the VAT system through the import and export of computer processing units (CPUs). The gang used highly complex chains of VAT registered companies both here and abroad to steal £37.5 million.
The final defendant of the 21-strong crime gang was sentenced last month and ended one of the most complex investigations undertaken by HMRC, which included seven trials and retrials. In total the gang were jailed for 74 years.
The conspiracy involved the import of CPUs mainly from Ireland VAT free. The goods would then be sold on more cheaply, but with VAT added, through a chain of companies each involved in the plot and sham invoices would be issued. Once the goods had been sold on a number of times they would be exported back to the EU. The exporter would then claim a VAT credit from HMRC for the VAT paid on the purchase of the goods.
The gang would divide the dishonest profits of the fraud and launder them through various bank accounts both in the UK and abroad. The account holders would then withdraw the bulk of the cash and were paid a commission for their dishonest service.
Some of the money is believed to have been invested in a third a tonne of gold bullion, two apartment tower blocks in Dubai worth £80 million and a luxury flat near Harrods, worth £4.5 million.
Houses in Harrow and Buckinghamshire, worth £2 million and £1.5 million respectively, have been restrained by offices, as well as a £500,000 riverside flat in Battersea and a fleet of top of the range sports cars.
The gang also gave ‘tainted gifts’ to their family of designer clothes, a Range Rover and cash totalling £1 million.
Richard Meadows, Assistant Director of Criminal Investigation for HMRC, said: “This is the largest ever confiscation order secured by Revenue & Customs at the end of one of our most complicated investigations. I believe it to be one of the largest confiscation orders in the UK to date. The gang stole £37.5 million in a VAT tax fraud using the cash to invest in luxury property in the UK and abroad.
“We are determined to bring to justice the criminals behind this type of fraud and take away the proceeds of their crime. We have worked very closely with the West Midlands Regional Asset Recovery Team (RART) and law enforcement agencies across the world to bring this case to a successful conclusion.”
His Honour Lord Justice Richard Flaux branded the criminals “complete liars and devious”.
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