Data Protection Act Proves Fruitless 
In March 2004 the North West Regional Asset Recovery Team (NWRART) and Lancashire Constabulary launched an investigation into Mohammed Arshid KHATANA of Nelson. He was suspected of being responsible for what was commonly known as DPA fraud and money Laundering.
Over previous months businesses across the country had been receiving bogus and misleading letters relating to registration requirements under the Data Protection Act. They all purported to have been sent out by an official body involved in the administration of the Data Protection Act, called the 'Data Protection Agency'. This was in fact a completely bogus body. The letters often carried words such as "Enforcement Section" and "Failure to comply... constitutes a criminal offence" and demanded a payment of either £95 or £135 payable to "DPA".
Thousands of these letters were sent out daily using commercial mailing lists with return addresses that sounded official but were no more than drop addresses. Those who sent cheques had them cashed through an account operated by Khatana's co-accused James Stuart. The account was held in Stuart's former name Adrian Belford, trading as Domestic Property Agency 'DPA'. This account was the first stage in the money laundering process. Thereafter, the funds were transferred into the account of Ultima Consulting Ltd, one of three companies set up by Khatana. From the Ultima Consulting Ltd account substantial monies paid off mortgages obtained by Ultima Developments Ltd, for properties purchased in the name of Ultima Construction Ltd. Other substantial amounts were withdrawn in cash. In total over £750,000 was laundered by Khatana through the Ultima Group.
Khatana subsequently pleaded guilty to 21 specimen offences of theft and deception and asked for a further 54 similar offences to be taken into consideration. He also pleaded guilty to money laundering between 1st January and 12th May 2004 contrary to section 327 of the Proceeds of Crime Act 2002. Stuart admitted money laundering contrary to section 328. On 20th December 2004 Khatana and Stuart were sentenced to 4 years 9 months and 1 year 9 months respectively. Both defendants have had restraint orders made against them. The confiscation hearing took place at Burnley Crown Court between the 11th and the 21st of September 2006 before her honour Judge Lunt. At a hearing on Friday 20th of October 2006 Judge Lunt ruled that Khatana had benefited by £1,326,292 and she ordered that he should pay back £473,076 before the 20th of April 2007 or face a further 2 years imprisonment. She also ruled that Stuart had benefited by £318,548 and that he should pay back £19,625 within 28 days or face a further 30 days imprisonment. This is a particularly satisfying result as other similar prosecutions around the country have either been unsuccessful or discontinued.
The Head of the North West RART, DCI Mike Kellett, said after the hearing: 'There is a misconception that the Proceeds of Crime Act applies solely to drug dealers; that is not the case. Mohammed Khatana lived a very comfortable lifestyle from cheating and deceiving honest business people. Whilst obtaining relatively minor amounts from individual companies, these very quickly mounted up to substantial sums that he and James Stuart laundered in order that they could enjoy the fruits of their criminal behaviour. The Proceeds of Crime Act was designed for people such as Khatana and Stuart as much as for any drug dealer and it is the intention of the police and the Crown Prosecution Service to invite the courts to use the Act in a robust manner in all such cases, as doing so ensures that criminals such as Khatana and Stuart cannot enjoy lifestyles paid for by their innocent victims'.