Two fugitives involved in one of Britain's biggest VAT frauds have been given a total of 31 years in jail for their part in a £150million criminal racket. Arif Patel, 55, and Mohamed Jaffar Ali, 59, both currently on the run from police in Dubai, were sentenced in their absence yesterday (Thursday) following a 14-week trial.
Sock manufacturer Patel, thought to be the mastermind, tried to steal £97m through VAT repayment claims on false exports of textiles and mobile phones. The pair, who worked in a criminal gang, also imported and sold counterfeit clothes that would have been worth at least £50m had they been genuine.
A joint Lancashire Police and HMRC investigation found their proceeds were used to buy property across Preston and London via offshore bank accounts. Patel was found guilty of false accounting, conspiracy to cheat the public revenue, the onward sale of counterfeit clothing and money laundering and given 20 years in prison
Ali was also found guilty of conspiracy to cheat the public revenue and money laundering, and he was handed 11 years in prison. Sentencing the pair at Chester Crown Court yeserday, HHJ Everett singled out Patel, saying he had led a “breathtakingly arrogant and dishonest organisation”.
Eamonn O’Neill, Assistant Director, Fraud Investigation Service a tHMRC, said the lengthy sentences the pair received reflected the severity of their crimes. He said: “Arif Patel and Mohamed Jaffar Ali were at the heart of one of the biggest carousel tax frauds this country has ever seen and the severity of their crimes has been recognised by today’s sentencing.
“We will continue to pursue those criminals who blatantly steal from the public services we all rely on and look to recover the proceeds of their crimes from current and future wealth. We are determined to ensure absconders face justice and we have helped secure the return of more than 70 fugitives since 2016, including some of the UK’s most harmful tax cheats.
Andrew Fox, Senior Prosecutor, from the Crown Prosecution Service, added that the pair had cost the public tens of millions of pounds in lost tax revenue. He said: “The sentencings of Arif Patel and Mohamed Jaffar Ali successfully conclude this part of an immense investigative and prosecution case against an organised criminal group, involved in counterfeit clothing, fraudulent VAT claims and money laundering.
“The cost to the public purse was tens of millions, money that could have been used for essential public services in the NHS, social care and education. Patel was sentenced in his absence, having remained in Dubai throughout the trial. The CPS will now pursue confiscation proceedings against the defendants, to prevent them enjoying the benefits of their criminal enterprise.”
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Sam Mackenzie, Assistant Chief Constable, Lancashire Constabulary, said hard-working taxpayers had lost out due to Patel’s fraudulent actions. He said: “While presenting himself as a genuine and reputable businessman Arif Patel in fact used stolen taxpayers’ cash to line his own pockets and fund a lavish lifestyle.
“This is money that should have been used to fund the vital public services which we all rely on and to which most of us contribute our fair share by working hard and paying tax."
In total, 26 members of this criminal empire have now been convicted and sentenced following six trials between 2011 and 2023, leading to jail terms totalling 147 years and seven months. And more than £78m of the gang’s assets have been restrained and the process to recover these proceeds of crime is in progress.
