wmlro.com: UK Judge makes it clear: pay up or grow old in jail

Syed Ahmed of Buckinghamshire and Shakeel Ahmad of Middlesex, both currently serving seven year jail terms, were each ordered to repay £92.3m within two months or face an additional ten years in jail as well as still having to repay the money when they appeared before HH Lor Justice Richard Flaux. The amount is to be paid by them jointly, not divided equally as individuals.

Officers have restrained high value assets including:

· A luxury flat in Knightsbridge worth £4.5m

· A house in Harrow worth £2m

· A house in Buckinghamshire worth £1.5m

· A riverside flat in Battersea worth £500,000

· Two apartment tower blocks in Dubai worth £80m

· 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 £1m.

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 £37.5m in a VAT tax fraud using the cash to invest in luxury property in the UK and abroad."

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 in the UK and abroad to steal £37.5m.

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, substantial property in Dubai and a luxury flat near Harrods.

Due diligence information:

Details of defendants and sentencing in Operation Devout Trial 1, at Northampton Crown Court on 14 August 2006 (Farrell) and the remaining defendants on 30 March 2007, along with Confiscation Orders secured include:

• Syed Mubarak Ahmed (DOB 25.09.72) Round Coppice, Iver Heath Buckinghamshire, formerly of Beaulieu Close, Datchet, Slough, Berkshire, was sentenced to seven years in prison. He was disqualified from being a company director for 12 years.

Syed Mubarak Ahmed, one of the main players, was involved in MST Associates (UK) Limited of Uxbridge. A VAT registered business used by the ‘missing trader’ to distance themselves from the shipper (or exporter) and reclaim the VAT charged by the ‘missing trader’.

Confiscation Order - £92.3m, to be paid within two months or face an additional ten years in jail.

· Shakeel Ahmad (DOB 07.01.72) 10 Astons Northwood, Middlesex, was sentenced to seven years in prison. He was disqualified from being a company director for 12 years. Ahmad, one of the main players, was also involved in MST Associates (UK) Limited. A VAT registered business used by the ‘missing trader’ to distance themselves from the shipper (or exporter) and reclaim the VAT charged by the ‘missing trader’.

Confiscation Order - £92.3m, to be paid within two months or face an additional ten years in jail.

• Stephen Farrell (DOB 07.05.59) 1,The Tryst, Birmingham Road, Lickey End, Bromsgrove, Worcestershire, was sentenced to four years in prison. He was disqualified from being a company director for 12 years.

Confiscation Order - £127,000. Unpaid by due date. Farrell is serving an additional 30 months in jail. The money is still owed.

• Mark Frederick Sheasby (DOB 16.10.61) 3 Fox Lane, Alrewas, Burton-on-Trent, Staffordshire, was sentenced to five years in prison. He was disqualified from being a company director for 12 years. The Court of Appeal later reduced his sentence to 3.5 years.

Confiscation Order – £285,283 paid in full.

• Somasuntharam Jeyakumar (DOB 26.11.61) 36 Hawthorne Drive, Harrow, Middlesex was sentenced to 3.5 years in prison. He was disqualified from being a company director for eight years.

Confiscation Order – £285,283 paid in full.

• Jaswender Singh Chahal (DOB 30.01.59) of 15 Hudson Road, Handsworth Wood, Birmingham, was sentenced to 18 months in prison for laundering £461,000.

Confiscation Order - £50,000. So far £38,800 has been paid.