Arif Patel, an Indian-origin sock maker, was sentenced to 20 years for organizing one of the UK’s greatest “carousel” tax scams. The plan featured fake VAT payback claims on textiles and mobile phone exports to steal GBP 97 million. Patel was convicted of fraudulent accounting, conspiracy to defraud the government, and money laundering.
HMRC and Lancashire police found that Patel and his gang imported and marketed counterfeit apparel worth at least GBP 50 million. Offshore bank accounts bought Preston and London residences with criminal revenues.
Mohamed Jaffar Ali from Dubai, another gang member, was found guilty and sentenced to 11 years in jail for conspiracy to defraud HMRC and money laundering.
With 26 criminal empire members convicted and jailed, this case is part of a bigger sweep. The gang members were sentenced to 147 years and seven months in six trials between 2011 and 2023. The UK tax agency has detained over GBP 78 million of their assets.
In absentia, Patel was condemned. The Crown Prosecution Service (CPS) will seek confiscation to prevent the accused from profiting from their crimes. The HMRC said that Patel’s business relied on several collaborators, including two chartered accountants, Anil Hindocha and Yogesh Patel, who were convicted of fraud.
