News Release issued by
the COI News Distribution Service on 17 September 2010
Two men who failed
to pay a record £184.6 million in the largest ever confiscation
order secured by HM Revenue & Customs (HMRC), yesterday
received extended jail terms of ten years each.
Gang members Syed Ahmed and Shakeel Ahmad, both currently serving
prison sentences of seven years, received the additional jail
terms of ten years for failing to abide by the court order issued
in July 2010. The order required them to re-pay crime profits of
£92.3 million each by the beginning of this month.
They were part of a 21-strong criminal gang who 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.
Richard Meadows, Assistant Director of Criminal Investigation for
HMRC, said:
“This will send the strongest message yet to criminals that they
cannot hide, even in prison, from our actions to reclaim their
criminal profits. We are determined that this money will be
restored to the nation’s finances in what is the largest
confiscation order ever secured in the UK. Their prison sentences
now total 34 years and they will still have to re-pay the
outstanding confiscation order.
Syed Ahmed and Shakeel Ahmad’s £184.6 million debt will be
realised through the assets restrained by HMRC including:
· A luxury flat in Knightsbridge worth £4.5 million
· A house
in Harrow worth £2 million
· A house in Buckinghamshire worth
£1.5 million
· A riverside flat in Battersea worth
£500,000
· Two apartment tower blocks in Dubai worth £80
million
· High performance motorcars including a Ferrari 360
Modena convertible and a Mercedes 500CL.
They also gave ‘tainted gifts’ to their families including top of
the range designer clothing, a Range Rover and cash totalling
around £1 million.
Background
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 in
June 2010 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, substantial property in Dubai and a luxury flat
near Harrods.
Notes to Editors
1. Photographs of the defendants and assets restrained are
available on request. A copy of the news release previously
issued, which includes all 21 defendants, can be viewed at: http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=414272&SubjectId=9
2. Details of the defendants confiscation order default hearing
on,16 September 2010, at Northampton District Magistrates Court,
along with sentencing on 30 March 2007 and confiscation orders on
5 July 2010, at Northampton Crown Court, include:
· Syed Mubarak Ahmed (DOB 25.09.72) of HM Prison Service
and formerly of Round Coppice, Iver Heath Buckinghamshire and of
Beaulieu Close, Datchet, Slough, Berkshire.
Sentencing - seven years in prison. He was
disqualified from being a company director for 12 years.
Confiscation Order - £92.3 million, to be
paid within two months or face an additional ten years in jail.
Default Sentence – an additionalten
years in prison
· Shakeel Ahmad (DOB 07.01.72) of HM Prison Service and
formerly of 10 Astons Northwood, Middlesex,
Sentencing - seven years in prison. He was
disqualified from being a company director for 12 years.
Confiscation Order - £92.3 million, to be
paid within two months or face an additional ten years in jail.
Default Sentence – an additionalten
years in prison
Issued by HM Revenue & Customs Press
Office
Press enquiries only please contact:
Contacts:
HMRC Out of Hours
Phone: 07860 359544
NDS.HMRC@coi.gsi.gov.uk
Jennie Kendall
Mobile: 07810 815832
jennie.kendall@hmrc.gsi.gov.uk
Bob Gaiger
Phone: 01392 440318
bob.gaiger@hmrc.gsi.gov.uk