Bogus car dealership gang stole 91 identities
Six members of a criminal gang have been sentenced for their part in setting up 90 fake companies in an effort to steal more than £800,000 via VAT and car finance fraud.
The operation established front companies, as well as a fake recruitment firm, to steal people's identities.
In a joint investigation, HM Revenue and Customs (HMRC), Derbyshire Police, and West Midlands Police found the gang used 91 stolen identities to submit claims between January 2015 and November 2016, pocketing £390,980.
The gang also used fake firms to submit fake VAT repayments, totalling £80,716.
Ringleader Shahid Mohammad, 31, alongside his co-defendants, Zahid Mohammad, 30, Mohammed Maroof, 28, all from Derby, and Adnan Sharif, 43, Mohsan Hussain, 25, and Usman Sharif, 41, all from Birmingham, were sentenced at Birmingham Crown Court on Thursday, after being convicted following a trial that ended in March.
The gang set up a fake recruitment firm to steal identities, and listed people as directors of fake car dealerships, using addresses of vacant premises across the Midlands for the phoney enterprises.
Personal information was stolen through the recruitment firm, which was then used to record fabricated vehicle sales, and to complete car finance agreements with lenders.
Once the lenders paid out, the money was transferred through several bank accounts, and then withdrawn in cash. The fake firms were used to make fraudulent VAT repayment claims.
There was also an attempt to steal a further £144,500 in car finance, and £233,160 in VAT, but these payments were withheld by HMRC.
Convictions in full
Shahid Mohammad: Convicted of conspiracy to cheat the public revenue and two counts of fraud - sentenced to six years in prison.
Zahid Mohammad: Convicted of conspiracy to cheat the public revenue - sentenced to 12 months in prison, suspended for 18 months.
Mohammed Maroof: Convicted of conspiracy to cheat the public revenue and one count of fraud - sentenced to 24 months in prison, suspended for 18 months.
Adnan Sharif: Convicted of conspiracy to cheat the public revenue - sentenced to nine months in prison, suspended for 15 months.
Mohsan Hussain: Convicted of money laundering - sentenced to an 18-month community order.
Usman Sharif: Convicted of conspiracy to cheat the public revenue - sentenced to nine months in prison, suspended for 15 months.
A seventh gang member, Nathon Downes, 41, of Stoke-on-Trent, pleaded guilty in March 2022 to offences in connection. He is due to be sentenced on 20 May.
“Shahid Mohammad and his criminal gang caused utter misery for dozens of innocent people," said Mark Robinson, operational lead at HMRC's Fraud Investigation Service.
"A huge amount of effort and planning went into committing these offences, which stole much-needed money from our public services.
“We will continue to work with our law enforcement partners to pursue the small minority who commit these types of crimes."
HMRC says action to recover the money has been launched.
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