A criminal gang that orchestrated an elaborate scheme involving 90 bogus companies in a bid to steal over £800,000 in VAT and car finance fraud has been sentenced to more than 10 years in prison.
Led by Derby man Shahid Mohammad, the seven-member gang established front companies to facilitate the fraud, including a fake recruitment firm used to steal identities. Mohammad received a six-year jail term, while his co-defendants were handed suspended prison sentences.
The gang’s fraudulent activities, conducted between January 2015 and November 2016, involved the use of 91 stolen identities to submit claims, resulting in the illicit pocketing of £390,980. Additionally, the gang exploited these fake firms to file fraudulent VAT repayments totalling £80,716.
Following a joint investigation by HM Revenue and Customs (HMRC), Derbyshire Police, and West Midlands Police, Mohammad and five other men—Zahid Mohammad, Mohammed Maroof, Adnan Sharif, Mohsan Hussain, and Usman Sharif—were convicted after a trial at Birmingham Crown Court.
Mark Robinson, Operational Lead of HMRC’s Fraud Investigation Service, condemned the gang’s actions, emphasizing the significant harm inflicted on innocent individuals whose identities were stolen for the fraud. Robinson underscored HMRC’s commitment to collaborating with law enforcement partners to pursue those engaged in such crimes.
The gang employed various tactics, including the establishment of a fake recruitment firm to siphon identities and the listing of unwitting individuals as directors of fictitious car dealerships. Stolen personal information obtained through the recruitment firm was used to fabricate vehicle sales records and complete fraudulent car finance agreements with lenders.
Once lenders disbursed funds, the gang routed the money through multiple bank accounts, ultimately withdrawing it in cash. Moreover, they exploited these sham companies to make fraudulent VAT repayment claims.
Despite attempts to steal an additional £144,500 in car finance and £233,160 in VAT, HMRC thwarted these efforts by withholding the payments.
The trial, marked by unusual circumstances, concluded without a jury after their discharge in November 2023 due to allegations of interference. The High Court subsequently ruled in January 2024 that Judge Andrew Smith could proceed with the trial and deliver verdicts without a jury.
All six men were sentenced at Birmingham Crown Court on May 9, 2024. The final gang member, Nathon Downes, who pleaded guilty in March 2022, awaits sentencing on May 20, 2024.
Efforts to recover the misappropriated funds are underway.
