One of the largest known carousel tax scams in the UK has been orchestrated by Arif Patel and Mohamed Jaffar Ali. Arif Patel, a 55-year-old Preston sock maker, and his criminal group attempted to steal 97 million pounds by claiming VAT reimbursement on bogus exports of textiles and mobile phones.
Additionally, they imported and marketed fake clothing that, if it had been real, would have cost at least 50 million pounds. Through the use of offshore bank accounts, the money was utilized to purchase real estate in Preston and London.
Arif Patel was found guilty on Tuesday, April 11, of false accounting, a conspiracy to defraud the public revenue, the further sale of counterfeit apparel, and money laundering following a combined investigation by HM Revenue and Customs (HMRC) and Lancashire Police.
Co-accused Mohamed Jaffar Ali, 58, of Dubai, was also convicted of money laundering and conspiracy to defraud the Revenue. The verdict was delivered following a 14-week trial at Chester Crown Court. Patel left for Dubai in 2011 and did not come back. He was found guilty on April 11 in his absence.
With the lifting of reporting limitations, it is now possible to publicly declare for the first time that 24 members of the criminal organisation were found guilty in five trials between 2011 and 2014 and sentenced to a combined total of more than 116 years in prison. The gang’s UK assets have also been frozen by HMRC, and legal action is currently being taken to reclaim these cash for the public coffer.
Richard Las, Director of the Fraud Investigation Service confirmed the matter and said, “These guilty verdicts close a significant chapter in one of the biggest tax fraud cases ever investigated by HMRC. For more than a decade HMRC and our partners have worked tirelessly and together to bring this gang to justice. Arif Patel lived a lavish lifestyle at the expense of the law-abiding majority.”
Las added that tax fraud is not devoid of victims, and fraudsters like these two rob the money that NHS and other essential public services rely on. “Our task is not done yet. The gang’s UK assets total more than 78 million pounds, and we have started the process to reclaim all of those criminal gains,” he stated.
Several lieutenants, including professional enablers, were essential to Arif Patel’s criminal organisation throughout the UK. Anil Hindocha, 69, and Yogesh Patel, 66, from Aylesbury, two chartered accountants from a Preston-based firm, were earlier implicated in this case. After being found guilty of fraudulent accounting, conspiring to defraud the public revenue, and money laundering in 2014, Anil Hindocha was sentenced to 12 years and 10 months in prison and Yogesh Patel was sentenced to five years in prison.
Arif Patel left for Dubai in July 2011 and never came back to the UK. He was found guilty on all counts, on April 11, 2023, following his trial at Chester Crown Court while he was not present.
Mohamed Jaffar Ali was found guilty of conspiracy to defraud public revenue and money laundering on Tuesday, April 11, 2023. He participated in the majority of the trial, but on March 27, 2023, he skipped court and a warrant for his arrest was issued. Next month, he will also receive a sentence. Meanwhile, Munaf Umarji Patel and Faisal Patel, brothers of Arif Patel, are still wanted by Lancashire Police.
