A COVENTRY man has been jailed for his part in a £38m 'missing trader' VAT fraud which exploited the mobile phone and computer industry.
Harnaik Singh Sandhu, 36, from Courthouse Green, is the eighth member of the gang to be sentenced, receiving a three-year term at Birmingham Crown Court yesterday after admitting charges of conspiracy to cheat the public revenue and money laundering.
Six other gang members were jailed in February this year, and a seventh last year, to over 40 years in total.
The multi-million VAT fraud in 2005 was uncovered by HM Revenue and Customers, which said the gang had set up chains of VAT registered companies, both here and abroad.
The conspiracy involved the import of mobile phones and computer processing units, predominantly from Dubai via Europe.
Once in the UK, the goods would be sold on with VAT added through a series of companies.
Once this had been done a number of times, they would be exported back to the EU with the exporter claiming a VAT credit from HMRC for the tax paid on the purchase of the goods, although this was never actually paid.
HMRC said this money was siphoned off and laundered through overseas companies in Dubai and Spain.
Enquiries were launched when links were identified with an associated investigation, codenamed Operation Elemi, which saw seven men from the Midlands and one from Dubai jailed for more than three decades in 2008 and 2009.
HMRC said confiscation proceedings were underway from this latest operation and properties worth in excess of £2.5m had been restrained, including a Spanish holiday home.
The sentencing of another defendant, 36-year-old Iqbal Singh Gandham, from Handsworth in Birmingham, will take place in the next few weeks.
He had already pleaded guilty to charges of conspiracy to cheat the public revenue and money laundering, said HMRC.
Source:http://www.thebusinessdesk.com/westmidlands/news/153901-coventry-fraudster-jailed-for-part-in-38m-con.html?news_section=19009 (Sign up required)
