Preston fraudster ordered to repay £2.2m VAT

A convicted fraudster from Lancashire, who was part of a VAT repayment fraud involving fake construction companies, must repay more than £2.2m.

The gang, led by Sakaria, set up 19 fake construction companies, used ‘puppet’ directors, fake invoices and bogus building contracts for housing developments as a smokescreen to hide their criminal activity.

Voice recognition technology showed Sakaria contacted HMRC by phone about the fraudulent VAT repayments.

Sakaria, who worked at Forte Accountants in Preston, lied about being an accountant. HMRC investigators found that as well as owning six properties in the Preston area valued at £408,464, a designer watch and a Mercedes Benz car, he had almost £2m in cash generated by the fraud some of which had been transferred to Dubai. HMRC investigators arranged a restraint of Sakaria’s assets while the confiscation proceedings progressed through the courts. Any sale of the restrained assets will now be used to fund the confiscation payment.