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Tax

VAT fraud convictions

Written by Roberta Murray

Monday, 15 September 2008

3 convicted for fraudulent activity relating to mobile phone trading.

Three fraudsters have been found guilty for their part in one of the UK's largest ever conspiracies to steal a staggering £250 million from the taxpayer.

They were jailed today for a total of 19.5 years at Southwark Crown Court following a major investigation by HM Revenue & Customs (HMRC), codenamed Operation Euripus. A fourth man was previously jailed for six years.

HM Revenue & Customs officers unravelled the complex and highly sophisticated plot to steal millions from the public purse through a major VAT conspiracy commonly known as 'missing trader' or carousel fraud through the import and export of mobile phones.

Chris Pygall, Deputy Director of Criminal Investigation for HM Revenue & Customs (HMRC) said:

"VAT fraud is a serious crime which diverts vital income from the UK's public services into the pockets of career criminals. HMRC will do everything in its power to put a stop to this. The hard work and dedication of HMRC officers has resulted in these fraudsters behind this particular sustained and determined criminal attack against the taxpayer being brought to justice."

The Court heard that on 2 July 2003, following a lengthy and painstaking investigation, HMRC officers (formerly Customs & Excise) carried out a series of co-ordinated arrests across the UK.

Over 40 suspects were arrested and questioned and more than one hundred homes and business were searched. Analysis of numerous documents and computers seized showed transaction chains, contacts between the defendants and how the organisation was carrying out fraudulent deals.

Offshore bank accounts were identified showing monies being transferred from the UK and EU into accounts in Hong Kong, Pakistan and Dubai.

Taher Majid was said by the Crown to be one of the principle organisers and Abdul Koser, and Quentin Reynolds were all said to be directors of the companies involved in the fraud.

His Honour Judge David Higgins commented on sentencing: "This was an attack on the very fabric of our society. It is deplorable and deeply anti-social. The public is entitled to be, and are, outraged."

David Green QC, Director of Revenue and Customs Prosecutions Office (RCPO), said: "The convictions in this case are the culmination of close working between HMRC investigators and RCPO prosecutors. This demonstrates the continued commitment of my staff to the prosecution of 'missing trader' or carousel fraud, despite the size and complexity of these cases and the challenges that they pose to the prosecutor."

The defendants were charged with Conspiracy to Cheat the Public Revenue under the Criminal Law Act 1977. They were sentenced as follows after a ten week trial at Southwark Crown Court.