Fireworks retailer boss jailed for fraud and forgery

The director of a Birmingham-based fireworks retailer has been sentenced to four years in prison for multiple fraud and forgery offences.

Investigations by the Insolvency Service uncovered a series of fraudulent activities linked to Raashid Khan’s business, Ikandy Wholesale.

The 29-year-old forged documents to evade payment of £75,000 for fireworks and to unfreeze his business bank account.

He also fraudulently secured a £50,000 Covid Bounce Back Loan just before his company entered liquidation and withdrew more than £60,000 from company funds after it had been wound up by the High Court.

Ikandy Wholesale traded in bulk goods, including fireworks and meat.

In 2019, Khan opened a trade account with a fireworks supplier, who later demanded payment for goods worth over £75,000. Khan sent the supplier a forged letter, falsely claiming that his bank account was frozen due to fraud investigations.

By May 2020, after the company faced mounting debts and liquidation proceedings, Khan forged a court document to convince his bank that the winding-up petition had been dismissed, allowing him to regain access to the account.

Shortly afterwards, he applied for a £50,000 Bounce Back Loan, falsely declaring a £1.5m turnover, even though the business was insolvent. In June 2020, Ikandy entered liquidation, owing creditors over £240,000.

Despite restrictions placed on the company’s bank account, Khan forged further documents to have the account reopened, enabling him to withdraw £62,158 in company funds.

Mark Stephens, Chief Investigator at the Insolvency Service, said: “Raashid Khan’s actions were highly deceptive, devious, and completely fraudulent. His behaviour showed an utter disregard for the insolvency regime which exists to deliver economic confidence to businesses.

“Khan not only forged three documents to his bank but sent a fake letter to a creditor chasing him for payment. His fraudulent actions extended to lying on an application to receive taxpayers’ money during the first few months of the pandemic. The Insolvency Service will not tolerate such an abuse of public money and flagrant attempts to deprive creditors of money they are owed when a company goes into liquidation.”

Khan, who pleaded guilty to fraud, forgery, and insolvency-related charges, was also banned from serving as a company director for 12 years in 2021.