Thursday, March 24, 2011

Handset sellers jailed for 140 million VAT scam

Five men who imported handsets VAT free and then resold them VAT inclusive have been jailed for a combined total of nearly 40 years

Five men who illegally imported mobile phones have been jailed for a combined 37 and a half years for failing to pay HM Revenue and Customs (HMRC) 140 million in VAT.

The men, Andrew Hart ( pictured top left), Mohammed Chaudhery, Kevin Davis (top right), Abdul Jabbar Butt (bottom left) and Tariq Sarwar (bottom right) where all part of a syndicate that imported handsets and central processing units, VAT free from EU countries.

Hart, Chaudhery, Davis and Butt each set up their own limited company, each which existed for a maximum of five weeks, to handle the importation, while Sarwar allegedly coordinated the businesses activities.

The gang then resold the devices to a UK customer base, inclusive of VAT, earning between 26.5 million to 39.1 million each.

None of the money has been repaid to HMRC and confiscation of the men’s assets is being sought.

On passing sentence His Honour Judge Tanzer said: “Society as a whole has been harmed by the type of activity you have indulged in.

“The loss to society is in the billions.”

Meanwhile convicted fraudster Craig Johnson who earned 20 million from similar fraud scam has been jailed for a further eight years, after being unable to pay back a 26 million confiscation order.

Johnson, who was originally sentenced to 12 and a half years jail in 2006, headed up a serious organised crime gang that earned 138 million by also importing mobile devices VAT free and reselling them VAT inclusive.

Johnson was unable to pay the confiscation order despite selling a variety of assets including four UK properties including a stately home in Staffordshire, high performance vehicles including a Bentley and a Ferrari as well as Rolex watches and diamond jewellery.

He was due to be released from his original sentence in April.

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