The head of a sock-manufacturing firm has been hit with a staggering £90 million repayment order after running an elaborate tax fraud scheme.
56-year-old Arif Patel, a wealthy resident of Preston known for his flashy lifestyle, drove a Ferrari and joined forces with a network of criminals to file false VAT claims linked to bogus exports of textiles and mobile devices.
Aside from their tax scams, Patel and his crew were also involved in selling knock-off clothing and channeling the ill-gotten gains into a sprawling real estate empire worldwide.
During a courtroom session at Chester Crown Court, a judge mandated the liquidation of £90 million worth of Patel’s assets, all to be funneled into public service funding. Notably, Patel is currently evading justice.
Managing a Preston-based textile business named Faisaltex Ltd, Patel and his accomplices executed a deceptive “carousel fraud” scheme—fabricating business transactions to make it look like goods were moving through multiple companies. They then exploited these counterfeit import and export records to reclaim hefty sums in VAT.
According to His Majesty’s Revenue and Customs (HMRC), this particular operation marked one of the largest carousel fraud incidents ever encountered.
Profits from their criminal activities enabled the gang to purchase properties situated in Preston, London, Morocco, the UAE, Saudi Arabia, and Turkey.
The tales of their counterfeit clothing schemes indicate that, had their wares been authentic, they could have been valued at approximately £50 million.
Patel fled to Dubai back in 2011 and has not returned since.
Together with co-defendant Mohamed Jaffar Ali, who is also from Dubai and aged 61, both were tried in their absence and convicted of fraud and money laundering after a 14-week legal battle in 2023.
Ali was ordered to repay over £677,000, while the duo collectively received prison sentences totaling 31 years.
In addition to seizing properties, the judge ruled that Patel’s dazzling Ferrari 575 Superamerica should be sold off at auction.
The investigation led to 24 other gang associates receiving a total of 116 years behind bars, after collaboration efforts between HMRC and Lancashire Police.
Richard Las, Director at the HMRC Fraud Investigation Service, highlighted that “Arif Patel led a luxurious life at the cost of lawful society, but now he will lose the real estate empire built on criminal earnings.”
Assistant Chief Constable Mark Winstanley from Lancashire Police reinforced that “Arif Patel was the leader of a Preston-based organized crime group that inflicted millions of pounds in losses to numerous businesses.”
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