Fugitive VAT fraudster sentenced to jail
A STOCKPORT businessman, currently on the run after being convicted of VAT fraud, has been sentenced to 42 months in prison.
Mohammad Tanwir Khan of Bluestone Drive, Heaton Moor ran mecahnical parts distribution company Spearpoint. He was found guilty of committing an £800,000 VAT repayment fraud by submitting over 350 false invoices linked to fictitious exports to Pakistan.
He was was sentenced in absence at Manchester Crown Court.
Khan, 58, who featured on the HM Revenue and Customs ‘Most Wanted’ list two weeks ago, went on the run in May following his conviction for VAT fraud. A bench warrant for his arrest was issued in June 2013.
Sandra Smith, assistant director of criminal investigation at HMRC which investigated Spearpoint’s accounts, said: “HMRC officers identified suspicious trading by Khan’s company, Spearpoint when his paperwork did not match the true level of exports.
“During interviews he couldn’t justify or prove his business claims. He had been living off stolen VAT repayments for a number of years, using faked paperwork to fraudulently reclaim on average over £100,000 per year.
“Tax fraud and attempts to launder the proceeds of crime are treated extremely seriously by HMRC, and we will relentlessly pursue any individuals or crime gangs believed to be involved.”
HMRC investigators discovered more than 1,700 suspect documents on Khan’s computer, plus hundreds of blank invoices in his home office and garage in readiness for further fraud attempts.
Spearpoint claimed to regularly supply mechanical parts to clients, including the Pakistan Navy.
HMRC officers searched Khan’s home and arrested him in May 2011. A detailed investigation followed and it became clear that he was vastly overstating the scale and cost of his company’s trading.
Khan now faces a confiscation hearing over his criminal profits.
