A benefits fraudster who orchestrated an elaborate scheme, faking the identities of nearly 200 children to siphon public money, has been ordered to repay over £2 million or face a nine-year prison sentence, according to the Department for Work and Pensions.
Ali Bana Mohamed, 42, hailing from Hulme in Manchester, was initially incarcerated in 2022 for spearheading a ten-year-long scam that defrauded taxpayers of at least £1.7 million.
In his elaborate scheme, Mohamed enlisted the help of relatives and friends to submit fraudulent claims under approximately 70 different names. He employed stolen identities of adults along with forged birth certificates for 188 fictitious children.
These deceptive claims were all predicated on the false premise that the adults were responsible for the care of these fictitious children and were therefore entitled to child benefits and tax credits.
Mohamed’s scheme came to light when Her Majesty’s Revenue and Customs (HMRC) noticed the repetitive use of the same two telephone numbers in connection with seemingly unrelated claims. Subsequently, the Department for Work and Pensions initiated an investigation known as “Operation Paratrooper,” revealing Mohamed and six others as the architects of the fraud.
Investigators also uncovered links to four properties in Manchester, including a fast-food shop and cafe, along with £500,000 in illicit bank transfers and withdrawals.
In 2022, Mohamed admitted to 29 fraud offences and was sentenced to three and a half years in prison. His sentence would have been more extended if he hadn’t already been serving a 16-year term for drugs and immigration-related offences.
Six individuals who assisted Mohamed in the fraud were sentenced in 2022 to over 13 years in prison collectively, with one receiving a suspended sentence.
Judge Brian Cummings commended the DWP officers for their “skill and determination in their investigation.”
The serious and organized crime section of the department established that Mohamed had submitted fraudulent child benefit and tax credit claims under approximately 70 different adult names between April 2007 and July 2016.
During the investigation, it was revealed that Mohamed maintained handwritten notebooks containing detailed information, which he concealed in his wardrobe.
On December 22, 2023, Liverpool Crown Court issued a confiscation order against Mohamed, requiring him to repay £2,164,828.30. The Proceeds of Crime Act empowers courts to calculate the financial benefits derived from criminal activities and issue confiscation orders based on assets.
Work and Pensions Secretary Mel Stride remarked, “Our welfare system is predicated on fairness, and we will make sure that those who need our help receive it and those who wish to exploit the system face justice.”
Striding forward against increasing benefit fraud sophistication, the DWP has pledged £900 million over three years to combat the issue. Additionally, a new Data Protection and Digital Information Bill will equip officials with the ability to scrutinize the accounts of individuals receiving benefits. Last year, the DWP’s anti-fraud squad saved the hard-working taxpayer £1.1 billion.
The crackdown on fraud, estimated to cost taxpayers £8 billion annually, reinforces the DWP’s commitment to preserving the integrity of the welfare system and protecting public funds from exploitation.
