Preston pair convicted for £56m VAT fraud
TWO men from Preston, who have fled to Dubai, have been found guilty of charges relating to a £56.5m VAT and money laundering fraud following a trial at Liverpool Crown Court.
Adam Umerji, 33 and Addullah Yusaf Allad, 32, were originally charged in January 2009. Three others involved in the fraud pleaded guilty when they appeared at Liverpool Crown Court earlier this year.
The gang operated a number of companies in the Preston area, trading in mobile phones.
Operating a “missing trader” scam they submitted fraudulent VAT repayment claims to reclaim VAT allegedly paid on the purchase of large quantities of stock. This cash was then transferred to Dubai.
Mike O’Grady, HMRC’s assistant director of criminal investigation, said: “Missing trader fraud is not merely a paper fraud, but often has links to other forms of criminal activity.
“In a blatant attack on our tax system these men stole a massive amount of money, lining their own pockets at the expense of the British taxpayer.”
Warrants have been issued for the arrest of Umerji and Allad and extradition proceedings have begun. Sentencing will take place in September.
All five defendants were charged with conspiring to cheat the public revenue. The other defendants were Sajid Muhammed Patel, 34, Wai Fong Yeung, 32, and Mohammed Mehtajee, 32. All three are from Preston.
