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Home»Finance»Derby gang leader helped pocket nearly £400k in finance fraud operation
Finance

Derby gang leader helped pocket nearly £400k in finance fraud operation

May 10, 20243 Mins Read


A Derby man has been jailed for leading a complex fraud operation that saw 90 bogus companies established in a bid to steal more than £800,000 in VAT. Shahid Mohammad, 31, of Crewe Street, Normanton, was the ringleader of the seven-strong gang, which would set up front companies to facilitate fraud.

A joint investigation by HM Revenue and Customs (HMRC), Derbyshire Police and West Midlands Police revealed the gang used 91 different stolen identities to submit claims between January 2015 and November 2016, pocketing £390,980. The gang also used these fake firms to submit fraudulent VAT repayments totalling £80,716.




Shahid Mohammad was jailed for six years and his co-defendants were handed suspended prison sentences. Zahid Mohammad, 30, also of Crewe Street, was handed a 12-month prison sentence, suspended for 18 months, after being found guilty of conspiracy to cheat the public revenue.

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A third Derby man, Mohammed Maroof, 29, of Duncan Road, Normanton, was found guilty of one count of one count of conspiracy to cheat the public revenue and one count of fraud. He was handed a two-year prison sentence, suspended for 18 months.

Three other men; Mohsan Hussain, 25, and Usman Sharif, 41, were convicted after a trial at Birmingham Crown Court which ended on Wednesday, March 2. Mark Robinson, operational lead, fraud investigation service, HMRC, said: “Shahid Mohammad and his criminal gang caused utter misery for dozens of innocent people whose stolen details were used in this fraud.

“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 and we urge anyone with information about tax evasion to report it to HMRC online.”

The fraudsters set up a fake recruitment firm to steal identities and list people as directors of phony car dealerships without their knowledge. They then used the addresses of vacant premises across the Midlands for their fake dealerships.

Personal information stolen through the recruitment firm was used to record made-up vehicle sales and complete car finance agreements with lenders. Once paid out by lenders, the money was transferred through several bank accounts and withdrawn in cash. These fake firms to make fraudulent VAT repayment claims.

The gang tried to steal a further £144,500 in car finance and a further £233,160 in VAT but these payments were withheld by HMRC. Unusually, the trial was concluded without a jury after they were discharged on 17 November 2023 following allegations of interference.


The High Court ruled on January 24 2024, that HHJ Andrew Smith could, in the interest of justice, complete the trial and deliver the verdicts without a jury. All six men were sentenced at Birmingham Crown Court on Thursday, May 9.

The final gang member, Nathon Downes, 41, of Stoke-on-Trent, pleaded guilty in March 2022 and will be sentenced on 20 May 2024. The police say action to recover the money has been launched.

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