A confiscation hearing at Worcester crown court on April 3rd 2007 has determined that two men involved in VAT fraud will have to pay back almost £5 million pounds.
David William Burch and Bhovinder Singh Sangha had previously been sentenced in July 2006 at Worcester crown court for offences involving what is known as ‘carousel fraud’
The defendants set up trading companies claiming to be involved in the importation and distribution of mobile telephones but failed to pay the VAT required, yet at the same time claimed VAT from HM Revenue and Customs.
Burch has already served two and a half years in prison, and Singh who is still serving four and a half will have to serve a further period of imprisonment if they fail to satisfy confiscation orders.
The investigating officers established that Burch had benefited to the sum of £1,000,552.75 from his involvement and he was ordered to repay £101,267.58 within three months or face further time in jail.
Sangha was said to have benefited to the tune of £28,608,317.56 and he was ordered to repay £4,729,006.14 within 15 months or face another four years in jail.
Investigators identified five properties, three motor cars and numerous bank accounts in Sangha’s name. Sangha may be forced to sell his assets to repay his confiscation order.
Properties identified included luxurious houses in Jarvis Park and Newick Avenue Little Aston an exclusive suburb of Birmingham. Also a flat in the same area, a Bentley car and a Mercedes car.
In June 2006 whilst awaiting sentence for these matters Sangha was stopped by officials as he tried to leave the country via the channel tunnel heading for India. In his possession were papers that identified a further £1.8m in funds that were later included in the confiscation order.
Other persons involved in this carousel fraud and other similar offences are still being investigated and confiscation orders for two further defendants are to be decided later in the year.
Yvonne Stone head of the Midlands Regional Asset Recovery Team said ‘ This enquiry has taken almost five years to reach this stage, with the potential of more cash being confiscated in the future. It demonstrates the determination and persistence of the Regional Asset Recovery Team and all officers involved in asset recovery to pursue the recovery of funds from those involved in crime’.