HM Revenue & Customs: £30m money launderer jailed for 10 years

The ringleader of a gang who laundered £30m of criminal cash through a network of money transfer offices was jailed at Southwark Crown Court today for 10 years, following a complex investigation by HM Revenue & Customs (HMRC).

Asif Ali, 40, of Luton, controlled a network of crooked money transfer offices which he and others used to clean up £30m of illicit money.

HMRC investigators found that Ali was at the centre of a money laundering scheme that is believed to have netted him a personal profit of up to £759,000 in just six months. Ali owned KB Money Transfer in Watford, but also controlled money service businesses registered in the names of his brother, sister-in-law and various employees. These were used to mask the huge sums of criminal cash passing through his bank accounts to foreign destinations. He produced fake business records on a daily basis to make the cash appear legitimate.

Undercover surveillance carried out by HMRC showed criminals, who have since been convicted of money laundering, were delivering cash to be laundered by Ali.

He was arrested outside his house receiving more than £96,000 in cash in a black bin bag from Ibrahim Patel. Searches of money service businesses in Watford, Southall and Manchester led to the arrest of Mohmed Patel, who was also jailed today for four years. More than £400,000 in cash was seized in total.

Peter Millroy, Assistant Director of Criminal Investigation for HMRC, said:

“Organised crime groups will stop at nothing in their bid to build vast portfolios of cash, properties, performance cars and other luxury items at the expense of the taxpayer. HMRC’s dedicated teams of investigators will pursue and bring to justice those who attempt to disguise and hide the illegal profits of other criminals.”

Confiscation proceedings are underway.

Notes to editors

1.      Details of defendants are:

·         Asif ALI, DOB 19/01/1970, of High Mead, Luton, LU3 1RY, convicted of acquiring, using or possessing criminal property, entering into or becoming concerned in a money laundering arrangement and concealing, disguising, converting or transferring criminal property. Sentenced to 10 years.

·         Mohmed Akhtar Yusuf PATEL, DOB 31/01/1976, of Gibraltar Street, Bolton, BL3 5DY, convicted of acquiring, using or possessing criminal property, entering into or becoming concerned in a money laundering arrangement and concealing, disguising, converting or transferring criminal property. Sentenced to four years.

·         Ibrahim Haji Adam PATEL, DOB 20/12/1965, of Rosamond Street, Bolton, BL3 4AL, pleaded guilty to acquiring, using or possessing criminal property, entering into or becoming concerned in a money laundering arrangement and concealing, disguising, converting or transferring criminal property. Sentenced (on 18/09/2009) to 40 weeks suspended for 18 months, and 120 hours community punishment order.

2.      Details of the money service businesses used to launder money are:

·         KB Money Transfer, Whippendell Road, Watford, WD18 7NE

·         Khojent Limited, Stockport Road, Longsight, Manchester M13 0RQ

·         Fast Int, Guru Kirpa Shopping Centre, The Broadway, Southall UB1 1PT

·         Pak Money Exchange, Selbourne Road, Luton LU4 8LP

3.      The total amount laundered was £30m, and the offence took place between October 2006 and April 2007. He and Ibrahim Patel were arrested on 12 April 2007. Mohmed Patel was arrested shortly afterwards.

4.      The laundering process involved Asif Ali using his money service business’ high street bank account to transfer criminal money overseas, where the money could be moved around and made available for criminal organisations. Large deposits made by a money service business are less suspicious than deposits of a similar size made by an individual. Use of a money service business also enables those involved to hide their identity. Some of the dirty money laundered by Asif Ali was provided by Khojent, collecting from criminal organisations. Ali also took cash from individuals (such as Arif Ismail who was arrested by HMRC with £300,000 cash in March 2007 and sentenced to 18 months after pleading guilty to money laundering in May 2008) who act as “go-betweens” for criminal organisations.

5.      If anyone has any information to report to HM Revenue & Customs (HMRC) about any individuals or businesses that may be evading their tax, please contact the Tax Evasion hotline by calling 0800 788 887 or via the website www.hmrc.gov.uk/tax-evasion.

NAT 38/10

Issued by HM Revenue & Customs Press Office
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