Patels swell jail population after massive Tax fraud in Manchester

Seven people were jailed for over 11 years in Liverpool on Monday for their part in a £5.3 million tax fraud involving a North West newsagents/garage chain. Three directors along with six other senior managers and employees of Aleef Garages Limited (also trading as Aleef Newsagents) pleaded guilty to the multi-million pound fraud after a long and complex investigation by HM Revenue & Customs (HMRC) investigators.

In court, confiscation orders in excess of £5.3 million were made with one to follow.

The 8 men and 1 woman were charged with offences related to Conspiracy to cheat the Revenue contrary to section 1 (1) of the Criminal Law Act 1977 and prosecuted by the Revenue and Customs Prosecutions Office (RCPO). The charges centred on fraudulent accounting related to franchise outlets, suppression of stock purchases and under declaration of takings at the newsagents' shops to the diversion of funds and payments of tax free undeclared wages. Money was distributed using bank accounts opened in the name of a charity but in reality the cash was used to fund private lifestyles and transferred to other personal accounts including some in the Channel Islands. Aleef Garages Limited is a limited company owned by members of a family called Patel, who reside in the Great Lever area of Bolton. The principle trade of the company is/was retail outlets and the business operates a number of garages and newsagents in the North West.

Three sons of the company founder, Mubarak (aged 55), Mustaq (53) and Iqbal (51) as company directors all had an integral role in running the business. The three brothers who pleaded guilty to cheating the Revenue have now been banned as directors for ten years each and have been subjected to confiscation orders totalling £5million plus a contribution to court costs of £500,000.

The main assets for the principal defendants consist of a large property portfolio of garages and newsagent outlets based mainly in Manchester, but also in Bolton and Liverpool. Default sentences totalling a further 15 years have been imposed on the three directors that will be served if they fail to pay the orders within a set timetable laid down by the court. Five of their co-conspirators also had confiscation orders added to their sentences yesterday and the sixth faces a confiscation hearing in approximately one month.

The six other employees who were sentenced for their part in the fraud are Hanif Patel (46), Usman Patel (45), Ibrahim Vali Patel (55), Nichole Patel (34), Inayat Patel (34) (all unrelated) and Javeed Bashir (48). All reside in the same Bolton area.

This has nothing to do with the Postman. (No relation)