Restaurant director given suspended jail sentence for VAT fraud

A director of a Manchester restaurant, who changed his name to hide his part in his family’s £1m VAT fraud, been given a suspended jail sentence.

Sibtain Ali, 35, of Burton on Trent, laundered £32,000 from the £1m fraud that saw his two sisters, his brother and his brother’s partner make false VAT repayment claims for several companies, including the Popadom and Shawarma Express restaurants in the Trafford Centre.

The four fraudsters were sentenced in 2010 after an investigation by HM Revenue and Customs (HMRC). Tasejad Hussain Jeffrey and his partner Bijan Khoshabi were jailed for the VAT fraud. Ali’s two sisters, Fiza and Asmat Hussain, were given suspended jail sentences.

Subthain Hussain Jeffrey was named on paperwork as a company officer and a director of the two restaurants. Investigators could not initially trace him until they discovered Ali had changed his name from Subthain Hussain Jeffrey.

The Jeffery family had previously tried to mislead investigators by claiming Tasejad Hussain Jeffrey was dead.

Ali admitted laundering £32,000 through the restaurant’s finances.

Sandra Smith, assistant director, fraud investigation service, HMRC, said: “Ali failed to hide his part in this fraud and is now paying the price. Bizarrely, the Jeffery family was prepared to go to extraordinary lengths to hide their crimes with name changes and claiming to be dead.

“If you suspect fraud contact us on 0800 788 887. We are determined to create a level playing field for local businesses by recovering stolen taxes and punishing the fraudsters.

Ali was jailed for one year suspended for 12 months and ordered to repay £32,000 within seven days of June 13 to HMRC under a compensation order. He must also do 180 hours unpaid community work, and pay £2,000 court costs at Stafford Crown Court.

Judge M Chambers QC told Ali: “You were involved in a VAT fraud led by your brother in which other family members were involved using a vehicle to claim VAT for which there was no legitimate entitlement. In relation to Popadom Ltd, you laundered £32,000 of false VAT repayments part of approximately £166,000.

“This fraud was committed when the UK was facing difficult financial times and is a serious matter for public money to be defrauded in this way. You were not arrested until February 2016, as your name change frustrated the authorities in finding you and were less than helpful in interview.”