Runaway fraudster gets four years in prison

Nazir Abdul Rashid Daud

A Leicester businessman, Nazir Abdul Rashid Daud, previously residing on Landseer Road, Leicester, has been sentenced to four years in prison and disqualified from company directorship for 15 years.

Daud, convicted in his absence at Leicester Crown Court on December 2, 2022, faced charges under the Fraud Act 2006 and the Companies Act 2006 for false representations and fraudulent trading between 2015 and 2018.

After evading trial, Daud was arrested on October 25, 2023, and held in custody pending sentencing.

At Leicester Crown Court on January 31, Judge Ebrahim Mooncey gave the prison sentence and ordered Daud to pay prosecution costs of £30,046.

Additionally, Daud’s company, Payrolls Direct, was fined £973,000.

The prosecution followed an investigation by Leicestershire County Council Trading Standards Service, which gathered statements from 18 victims.

Daud, as the sole director of Payrolls Direct established in 2014, advertised franchise licenses for a cloud-based payroll system priced between £5,995 and £9,995.

Despite promises of substantial earnings and comprehensive support, statements from franchisees revealed significant financial losses and contractual terminations due to unfulfilled promises of assistance.

The total value of the fraud exceeded £320,000, with victims experiencing additional financial burdens, including advertising costs and wasted efforts to gain clients.

Daud’s defence argued that Payrolls Direct started with legitimate intentions but lost control over time.

Harpreet Giani, representing Mr Daud, said: “Mr Daud wants to come clean now. He understands he’s probably going to receive a long prison sentence.”

Anthony Raybould, Daud’s accomplice, was given a suspended 22-month prison term after admitting guilt in December 2022 at Leicester Crown Court