£56m mobile phone VAT fraud gang jailed

TWO Lancashire men, who have absconded to Dubai, have been sentenced in their absence to 34 years in jail for their part in a £56.5m ‘missing trader’ VAT and money laundering fraud.

Preston pair Adam Umerji, 33 and Abdullah Yusaf Allad, 32 were originally charged in January 2009, but absconded before the trial.

Three other members of their gang involved in the fraud who pleaded guilty prior to trial were also jailed for a total 15 years at Liverpool Crown Court.

The offenders operated a number of companies in the Preston area, trading in mobile phones.  They submitted fraudulent VAT repayment claims to reclaim millions of pounds in VAT paid by them on the purchase of large quantities of stock.

They then transferred their criminal proceeds out of the UK to Dubai in an effort to conceal their illegal activities.

Mike O’Grady, assistant director criminal investigation, HMRC 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.”

His Honour Judge Swift described the conspiracy in court  as “carefully and cleverly organised, in reality it was no more than a scam”.

He added that Allad and Umerji “were the main and controlling minds of the fraud” and “that the scale of offending goes far beyond normal sentencing guidelines for sentencing fraud cases.

“This was taxpayers’ money otherwise used for public services and amounts of this size severally damage the public purse.”

HMRC investigations discovered that £37m had been laundered through the network of companies operated by the gang and halted further payments in 2006. The gang had submitted VAT repayment claims for over £56.5 million over a 10-month period.

Bench warrants were issued for the arrest of the two absconders and extradition proceedings have commenced.

Those convicted in this fraud face future confiscation proceedings, which begin in November.

The offenders were convicted of two counts ‘Conspiring to Cheat the Public Revenue.

Adam Umerji, also known as Shafiq Patel, from St John’s Court, Broughton, Preston, was sentenced to 12 years in jail for the VAT fraud and five years for the money laundering.

Umerji was also disqualified from being a director for 10 years. There were many companies listed in evidence in this fraud, Umerji was principally linked to Eurosabre Ltd, Vertu Telecoms Ltd and Master Trading (UK) Ltd.

Abdullah Yusuf Allad, whose last known address was Black Bull Lane, Preston, was sentenced to 12 years for the VAT fraud and five years for the money laundering. Allad was also disqualified from being a director for 10 years.

Sajid Muhammed Patel from Ferndale, Fulwood, Preston pleaded guilty in May and was sentenced to two years in prison for the VAT fraud and two years for the money laundering. Patel, the older brother of Umerji, was also disqualified from being a director for six years.

Wai Fong (Katie) Yeung formerly of Garstang Road, Fulwood, Preston pleaded guilty in April and was sentenced to two and a half years in jail for the VAT fraud plus two and a half years for the money laundering.

She was also disqualified from being a director for six years. Yeung was responsible for creating and operating Hong Kong Jai Hua International Ltd which was used to launder millions abroad.

Mohammed Mehtajee – Yeung’s boyfriend, also formerly of Garstang Road, Fulwood, also pleaded guilty in April and was sentenced to four years in jail for the VAT fraud and two years for the money laundering. He was was also disqualified from being a director for six years.

All the sentences will be served concurrently.