VAT car finance fraudster jailed

The leader of gang that set up 90 bogus companies in a bid to steal more than £800,000 in a VAT and car finance fraud has been sentenced to six years.

Shahid Mohammad from Derby led the seven-strong gang in setting up front companies to facilitate the fraud which included a fake recruitment firm to steal identities.

Mohammad was jailed for six years and his co-defendants were handed suspended prison sentences.

A joint investigation by HM Revenue and Customs (HMRC), Derbyshire Police and West Midlands Police revealed the gang used 91 different stolen identities to submit claims between January 2015 and November 2016, pocketing £390,980.

The gang also used these fake firms to submit fraudulent VAT repayments totalling £80,716.

Ringleader Shahid Mohammad, 31, and five other men; Zahid Mohammad, 30, Mohammed Maroof, 28, Adnan Sharif, 43, Mohsan Hussain, 25, and Usman Sharif, 41, were convicted after a trial at Birmingham Crown Court.

Mark Robinson, operational lead for the fraud investigation service at HMRC, said: “Shahid Mohammad and his criminal gang caused utter misery for dozens of innocent people whose stolen details were used in this fraud.

“A huge amount of effort and planning went into committing these offences, which stole much needed money from our public services.

“We will continue to work with our law enforcement partners to pursue the small minority who commit these types of crimes and we urge anyone with information about tax evasion to report it to HMRC online.”

The fraudsters set up a fake recruitment firm to steal identities and list people as directors of phony car dealerships without their knowledge.

They then used the addresses of vacant premises across the Midlands for their fake dealerships.

Personal information stolen through the recruitment firm was used to record made-up vehicle sales and complete car finance agreements with lenders.

Once paid out by lenders, the money was transferred through several bank accounts and withdrawn in cash. These fake firms to make fraudulent VAT repayment claims.

The gang tried to steal a further £144,500 in car finance and a further £233,160 in VAT but these payments were withheld by HMRC.

Unusually, the trial was concluded in March without a jury after they were discharged in November following allegations of interference.

The High Court ruled in January that the trial could be completed the trial without a jury.

All six men were sentenced at Birmingham Crown Court yesterday (May 9).

The final gang member, Nathon Downes, 41, of Stoke-on-Trent, who pleaded guilty, will be sentenced on May 20.

Action to recover the money has been launched.