A Rochdale businessman, who pocketed nearly £1.25 million from two VAT frauds, has been ordered to repay almost £400,000 or face another four years in jail after an investigation by HM Revenue and Customs (HMRC).
Mubbashir Alam, 42, of Maldon Street, set up eight fake clothing companies in a deliberate attempt to claim false VAT repayments. He was originally jailed for the fraud in November 2014, he now has to repay the stolen tax within three months or he goes back to jail for four years and still has to pay.
Debbie Porter, Assistant Director, Fraud Investigation Service, HMRC, said:
“Alam went to great lengths to distance himself from the fake companies he set up to commit his frauds and stole a substantial sum of public money to line his own pockets. HMRC will pursue every avenue to ensure that the UK VAT system is not abused in this way and that we recover all the stolen money to restore it to taxpayers’ funds.”
The court decided that Alam had benefited from his crimes by £1,053,586.57 and ordered him to repay £397,235.94 based on evidence of his assets provided by HMRC investigators including: more than £328,840.12 in investments and known bank accounts and tainted gifts of almost £70,000 to other family members.
Notes for Editors
1. Mubbashir Alam Aslam (known as Mubbashir Alam), DOB 25/12/74, of Maldon Street, Rochdale, Greater Manchester, was ordered to repay £397,235.94 within three months or he goes back to jail for four years and still has to pay, at Manchester Crown Court on 1 August 2017. He was originally sentenced for cheating the public revenue and three counts of furnishing false Value Added Tax (VAT) returns and jailed for five years jail on Tuesday 18 November 2014.
2.For details of the fraud case see HMRC news release NW21/14: http://www.mynewsdesk.com/uk/hm-revenue-customs-hmrc/pressreleases/rochdale-clothing-boss-jailed-for-vat-fraud-1086455
3. There is no appeal against default jail sentences issued in confiscation orders and the order for repayment remains in place after the default sentence is served by the fraudster. If the assets held by the convicted criminal at the time of the order are less than the benefit derived from the fraud, then any future assets can be confiscated up to the value of the benefit of the fraud.
4. Anyone with information regarding fraud is encouraged to contact the new HMRC Fraud hotline on 0800 788 887 or report it online via: http://www.hmrc.gov.uk/reportingfraud/online.htm
5. Follow HMRC’s Press Office on Twitter @hmrcpressoffice
6. HMRC’s Flickr channel www.flickr.com/hmrcgovuk
Issued by HM Revenue & Customs Press Office
HM Revenue & Customs (HMRC) is the UK’s tax authority.
HMRC is responsible for making sure that the money is available to fund the UK’s public services and for helping families and individuals with targeted financial support.