HM REVENUE AND
CUSTOMS News Release (NAT 41/08) issued by COI News Distribution
Service. 12 September 2008
Three fraudsters
have been found guilty for their part in one of the UK's
largest ever conspiracies to steal a staggering £250 million from
the taxpayer. They were jailed today for a total of 19.5 years at
Southwark Crown Court following a major investigation by HM
Revenue & Customs (HMRC), codenamed Operation Euripus. A
fourth man was previously jailed for six years.
HM Revenue & Customs officers unravelled the complex and
highly sophisticated plot to steal millions from the public purse
through a major VAT conspiracy commonly known as 'missing
trader' or carousel fraud through the import and export of
mobile phones.
Chris Pygall, Deputy Director of Criminal Investigation for HM
Revenue & Customs (HMRC) said:
"VAT fraud is a serious crime which diverts vital income
from the UK's public services into the pockets of career
criminals. HMRC will do everything in its power to put a stop to
this. The hard work and dedication of HMRC officers has resulted
in these fraudsters behind this particular sustained and
determined criminal attack against the taxpayer being brought to
justice. The successful prosecution by the Revenue and Customs
Prosecutions Office (RCPO) of these criminals should send a clear
signal to anyone involved or considering becoming involved in VAT
fraud that the crime is serious and so are the penalties."
The Court heard that on 2 July 2003, following a lengthy and
painstaking investigation, HMRC officers (formerly Customs &
Excise) carried out a series of co-ordinated arrests across the UK.
Over 40 suspects were arrested and questioned and more than one
hundred homes and business were searched. Analysis of numerous
documents and computers seized showed transaction chains, contacts
between the defendants and how the organisation was carrying out
fraudulent deals. Offshore bank accounts were identified showing
monies being transferred from the UK and EU into accounts in Hong
Kong, Pakistan and Dubai.
Taher Majid was said by the Crown to be one of the principle
organisers and Abdul Koser, and Quentin Reynolds were all said to
be directors of the companies involved in the fraud.
His Honour Judge David Higgins commented on sentencing:
"This was an attack on the very fabric of our society. It is
deplorable and deeply anti-social. The public is entitled to be,
and are, outraged."
David Green QC, Director of Revenue and Customs Prosecutions
Office (RCPO), said: "The convictions in this case are the
culmination of close working between HMRC investigators and RCPO
prosecutors. This demonstrates the continued commitment of my
staff to the prosecution of 'missing trader' or carousel
fraud, despite the size and complexity of these cases and the
challenges that they pose to the prosecutor."
Notes for editors
1. Photographs of the defendants are available on request.
2. The defendants were charged with Conspiracy to Cheat the
Public Revenue under the Criminal Law Act 1977. They were
sentenced as follows after a ten week trial at Southwark Crown Court
* Taher Majid, (18.06.72) of Ty Draw Road, Roath Park, Cardiff,
was sentenced to 10 years in prison. He was disqualified from
being a company director for 10 years
Majid was a principal player in the fraud organising the chain of
companies and how they would each be used to carry out the fraud.
* Abdul Koser, (DOB 05.01.66), of Alexandra Road South,
Manchester, was sentenced to five years in prison. He was
disqualified from being a company director for five years
Koser acted as a 'buffer trader' in the fraud. He used
his business, a VAT registered company, to put distance between
the 'missing trader' and the 'broker' in the fraud.
* Quentin Reynolds, (DOB 03.07.62) of Herons Lea, Sheldon Avenue,
North London, was sentenced to four-and-a-half years in prison. He
was disqualified from being a company director for five years.
Reynolds acted as a 'buffer trader' in the fraud. He
used his business, a VAT registered company, to put distance
between the 'missing trader' and the 'broker'
in the fraud.
3. On 17 April 2008 at Southwark Crown Court a fourth man pleaded
guilty to Conspiracy to Cheat the Public Revenue under the
Criminal Law Act 1977.
* Marcus Hughes (DOB 08.09.70) of HMP Dovegate and previously of
Millers View, Cheadle, Staffordshire, was sentenced to six years
in prison. He was already serving a 12 year prison sentence for
drug smuggling at the time of his conviction.
4. This case was successfully prosecuted by the Revenue and
Customs Prosecutions Office (RCPO). RCPO is an independent
prosecuting authority, which reports to the Attorney General, and
is responsible for the prosecution of all HMRC cases in England
& Wales.
Issued by HM Revenue & Customs Press Office
Website http://www.hmrc.gov.uk