Derby Gang Sentenced for £800K VAT and Car Finance Scam
A ruthless criminal gang masterminded a massive fraud involving 90 fake firms to con over £800,000 in VAT and car finance payouts. The ring-leader, Derby man Shahid Mohammad, has been jailed for six years. His six accomplices got suspended sentences after a Birmingham Crown Court trial.
Fake Firms and Stolen Identities Fuel Fraud
Between January 2015 and November 2016, the gang set up 91 bogus companies and a sham recruitment agency to steal identities. Using stolen personal details, they submitted bogus claims netting nearly £391,000. On top of that, they looted £80,716 in fraudulent VAT repayments.
They also faked car sales records and car finance deals by listing innocent people as directors of the fake dealerships. Once lenders paid out, the gang laundered the cash through a web of bank accounts before withdrawing it in fat cash piles.
Law Enforcement Cracks Down
HM Revenue and Customs (HMRC), Derbyshire Police, and West Midlands Police teamed up to bring the scammers down. Mark Robinson of HMRC slammed the gang for the damage inflicted on innocent victims whose identities were stolen. He vowed to keep working with police to hunt down fraudsters.
The gang even tried to rip off a further £144,500 in car finance and £233,160 in VAT but HMRC blocked those dodgy claims.
Jury Dropped, But Justice Served
The trial hit a snag when the jury was discharged over interference claims in November 2023. The High Court ruled Judge Andrew Smith could press ahead without a jury and hand down verdicts.
On May 9, 2024, six men, including Shahid Mohammad, were sentenced at Birmingham Crown Court. The last gang member, Nathon Downes, who admitted guilt back in March 2022, faces sentencing on May 20.
Efforts are now underway to recover the stolen cash.
