Indian-Origin Mastermind Behind UK's Largest Tax Fraud Ordered to Repay £90 Million

London, Aug 29 (PTI) — An Indian-origin man involved in masterminding a counterfeit designer clothing racket and previously sentenced over one of the largest tax frauds in the UK, Arif Patel, has been mandated to pay back over 90 million pounds following a court decision this week.

Patel, a 57-year-old originating from Preston, North West England and now residing in Dubai, was convicted of fabricating accounts, conspiracy to deceive public revenue, and money laundering in 2023.

The Crown Prosecution Service (CPS) announced on Thursday that a Confiscation Order has been obtained against Patel at Chester Crown Court. This will enable the sale of his assets to recover the owed funds.

"The CPS has worked rigorously alongside HMRC [His Majesty's Revenue and Customs] and Lancashire Police to prevent Arif Patel from benefiting from his counterfeit designer clothing scam and fraudulent VAT claims," stated Adrian Foster, Chief Crown Prosecutor of the CPS Proceeds of Crime Division. “In total, Patel must return more than 90 million pounds or face further time added to his original sentence. Over the last five years, CPS has recovered 478 million pounds through Confiscation Orders ensuring that many convicted criminals cannot enjoy their illicit gains, with more than 95 million pounds returned to crime victims as compensation,” he added.

UK prosecutors revealed that Patel and his criminal network swindled 33.4 million pounds from the British government through false Value Added Tax (VAT) repayment claims on bogus exports involving textiles and mobile phones. Furthermore, they imported and marketed counterfeit clothes valued at over 19.19 million pounds, cleverly concealing their activities by establishing a complex network of sham companies. Proceeds from the scam helped acquire properties across Preston and London using offshore accounts, according to the CPS.

"Arif Patel led an opulent lifestyle at the expense of law-abiding citizens but will now forfeit the property empire built from criminal proceeds,” remarked Richard Las, Director of HMRC’s Fraud Investigation Service. “Our commitment doesn’t end at conviction. For the last two years, with the collaboration of police and CPS, we’ve secured one of the biggest criminal confiscations ever. Tens of millions of stolen funds will now directly benefit public services,” he stated.

After a trial in April 2023, Patel was sentenced in absentia to a 20-year term for tax fraud in the UK. The UK tax authorities reported that, collectively, 26 members of the crime syndicate faced convictions and sentences following six trials between 2011 and 2023, culminating in jail terms totaling 147 years and seven months.

"Arif Patel was the leader of an organized crime group based in Preston responsible for causing millions' worth of losses to numerous companies. His greed-driven actions directly affected taxpayers,” noted Mark Winstanley, Assistant Chief Constable with Lancashire Police. “A diligent multi-agency operation involving Lancashire police and HMRC has culminated in securing this Confiscation Order worth 90,503,211 pounds to reimburse public funds, hence recovering his illicit gains," he added.

HMRC reported that Patel moved to Dubai in July 2011 and has remained absent from the UK since before his conviction and sentencing.

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