The discovery of a van full of counterfeit clothes on the M74 near Ecclefechan nearly 20 years ago played a key part in the prosecution of a multi-million pound tax fraud case.
Police arrested a van driver who was transporting fake designer goods bearing the name of brands such as Calvin Klein, Nike, Lacoste and Levi Strauss.
The man was part of a major crime gang masterminded by Arif Patel, 55, of Preston, who tried to steal £97 million through VAT repayment claims on false exports of textiles and mobile phones.
The gang also imported and sold counterfeit clothes that would have been worth at least £50 million, had they been genuine.
The proceeds were used to buy property across Preston and London through offshore bank accounts.
Following a joint investigation between HM Revenue and Customs (HMRC) and Lancashire Police, Arif Patel was this week found guilty of false accounting, conspiracy to cheat the public revenue, the onward sale of counterfeit clothing and money laundering.
Co-accused Mohamed Jaffar Ali, 58, of Dubai, was also found guilty on Tuesday of conspiracy to cheat the revenue and money laundering.
The convictions followed a 14-week trial at Chester Crown Court.
Reporting restrictions have now been lifted and it can be revealed for the first time that 24 members of the criminal empire were convicted in five trials between 2011 and 2014 and jailed for a total of more than 116 years.
A spokesman for HMRC told the Standard: “A key part of the prosecution’s case was when a member of the gang driving a van full of counterfeit clothes was stopped by Scottish police officers on the M74 near Ecclefechan in Dumfries and Galloway in August 2005.
“Inside the van were a huge variety of ripped off brands, including Calvin Klein, Walt Disney, Nike, Prada, Emporio Armani, Lacoste and Levi Strauss.”
Arif Patel’s Preston-based company, Faisaltex Ltd, was at the heart of his criminal empire.
From here, he ran the counterfeit clothing import operation and a false export business.
As well as being a major player in the overall criminal conspiracy, Mohamed Jaffar Ali also laundered the proceeds through bank accounts he set up in Dubai and offshore.
Patel and the Faisaltex group of companies had turned to bulk imports of counterfeit clothing in 2004. During the next three years dozens of containers with fake designer clothing inside were stopped at ports across the UK, including Liverpool, Southampton and Felixstowe.
Onward distribution to UK traders was confirmed when a delivery to a Glasgow wholesaler was intercepted by police at Ecclefechan and revealed to be poorly made designer rip-offs.
Patel also used the business, from 2004, to make fraudulent VAT repayment claims on supposed high-value goods and yarns.
In total, the gang fraudulently claimed £97 million on false exports of textiles and mobile phones, but HMRC stopped £64 million of the claims.
The scam is known as a carousel fraud, where goods are purportedly sold to genuine buyers, but in fact the whole process is controlled by the criminal, who instigates a paper trail of alleged sales and exports in order to reclaim VAT.
Patel, who lives in Dubai, was convicted in his absence.
Richard Las, director of HMRC’s fraud investigation service, 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.
“Tax crime is not victimless and fraudsters like this pair steal the money that funds the NHS and other vital public services we all rely on.
“Our work doesn’t stop here.
“We have more than £78 million of the gang’s UK assets restrained and have begun the process to recover all those proceeds of crime.”
Arif Patel travelled to Dubai in July 2011 and failed to return.
He was tried in his absence at Chester Crown Court where he was found guilty of all charges on Tuesday. He will be sentenced next month.
After attending the majority of the trial Mohamed Jaffar Ali failed to appear in court on March 27 and a warrant was issued for his arrest.
He will also be sentenced next month.
Two Preston based accountants were previously sentenced for their part in the fraud.
Anil Hindocha , 69, was jailed for 12 years and 10 months in 2014 and Yogesh Patel, 66, was sent to prison for five years and seven months.
