The group of 12 people, who also included men from Birmingham and Walsall, used non-trade businesses and stolen personal information to cash in on support packages set up during the pandemic, including coronavirus grants, bounce back loans and more. Made hundreds of fraudulent claims for HMRC support payments.
Tasadak Hussain, 54, and Imaan Hussain, 24, of Northfield Crescent, Cottingley, were each sentenced to four years and nine months.
Both men were also disqualified from being company directors for six years.
Al Harris Hussain, 30, of Thornbury Grove, Bradford, was sentenced to two years in prison, suspended for two years.
The group is “responsible for very well-planned, sophisticated and sustained attacks”
Following a lengthy investigation by Birmingham City Council's Trading Standards Office, the defendants appeared at Birmingham Crown Court and in two trials divided by number of defendants, 12 each entered guilty pleas or were charged with charges including conspiracy. He was convicted after a trial. commit fraud or money laundering;
Mark Jackson and Lucinda Willmott-Russels, prosecuting on behalf of Birmingham City Council, said the group had “a highly planned and sophisticated response to the financial support measures introduced by the UK government to support businesses”. “We are responsible for the sustained attacks.” and individuals suffering during and as a result of the COVID-19 pandemic. ”
court precedent
The court heard a number of support packages were set up during the pandemic, including small business grants, Bounce Back loans and the Eat Out to Help Out scheme.
All of these are aimed at providing financial support to businesses and individuals who have suffered during the coronavirus crisis that began in 2020.
Fraudulent HMRC self-assessments and VAT claims were also submitted.
The court heard the group saw an opportunity to take advantage of the system, becoming directors of companies with which they did not trade, and using stolen personal information to make fraudulent applications for cash.
They opened multiple bank accounts and after convincing others to use their accounts in exchange for payments, the funds were laundered through multiple accounts and sent to the UK via accounts in the Netherlands and the United Arab Emirates. Money was sent outside the jurisdiction.
Obtained at least 26 bounce back loans totaling over £1,300,000
The criminal group was responsible for submitting at least 53 fraudulent applications for small business grants (totaling more than £530,000) from five different local authorities.
They obtained public funding in the form of an HMRC self-assessment and a meal out support scheme payment worth more than £530,000.
They also secured at least 26 bounce back loans from seven different banks, totaling more than £1.3 million.
The court heard that the defendants used more than 50 different companies and more than 100 different bank accounts in their fraud and money laundering operations.
“Heinous crime during a national emergency”
Birmingham City Council initially launched an investigation into coordinated large-scale funding (initially small business grant funding) in 2020.
As the investigation progressed, evidence was discovered indicating that the defendants were collaborating with and working as members of organized crime groups.
The investigation was assisted by West Midlands Police.
Councilor Sam Forsyth, chair of Birmingham City Council's licensing and civil protection committee, said: “These were heinous crimes during a national emergency.
“People across the country were suffering during the pandemic, but most were determined to help each other.
“However, these people found an opportunity to take funds from the public purse and make money illegally.
“These convictions should make it absolutely clear that if you act in this way, you will be arrested and face the consequences of your actions.
“This investigation has been long and complex and we would like to express our huge gratitude to everyone involved.”
Leader of the council, Councilor John Cotton, said: “Attempting to defraud taxpayers and deprive others of vital funding during a global pandemic is an abhorrent crime.
“I would like to thank council staff and our partners for working so hard to bring these offenders to justice.”
Other men were also convicted
Kirat Dias, 51, of The Hurst in Moseley, Birmingham, was sentenced to seven years and seven months. Umar Yousaf, 40, of Bent Avenue, Quinton, Birmingham, was sentenced to eight years in prison. Sajid Hussain, 36, of Flackwell Road, Erdington, Birmingham, was sentenced to five years in prison. Samir Mohammed, 34, of Waterfront Way, Walsall, was sentenced to four years and nine months. Noah Dean, 32, of Woodend Road, Erdington, Birmingham, was sentenced to five years and three months. Osama bin Tariq, 26, of The Hurst in Moseley, Birmingham, was sentenced to four years in prison. Naqeeb Shakrut, 26, of Springcroft Road, Hall Green, Birmingham, was sentenced to four years and nine months. Jishan Ahmed, 30, of Higgins Lane, Quinton, Birmingham, and Harun Shehzad, 29, of City Road, Edgbaston, Birmingham, will be sentenced at a later date.
