Twelve Convicted in £2.5M COVID-19 Support Fraud Scheme

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Birmingham Crown Court has sentenced ten members of a gang who defrauded the government of £2.5 million in COVID-19 relief funds, marking the conclusion of one of the most complex and significant fraud investigations in the UK. The group, operating from Birmingham, Walsall, and Yorkshire, exploited business support schemes during the pandemic, using a network of non-trading companies, stolen identities, and forged documents to orchestrate the scam.

Sophisticated Fraud Operation

The scheme targeted various financial support measures introduced in 2020, including Small Business Grants, Bounce Back Loans, and HMRC relief schemes. Over 50 companies and 100 bank accounts were used to funnel money to the conspirators, with funds laundered through cryptocurrency and transferred abroad, including to Dubai and Istanbul.

Prosecutor Mark Jackson, representing Birmingham City Council Trading Standards, described the fraud as “persistent and sophisticated,” emphasizing the defendants’ determination to exploit public funds meant to support struggling businesses during the pandemic.

Investigation and Arrests

The investigation, led by Birmingham Trading Standards, began in April 2021 following suspicious grant applications linked to non-trading businesses. Key arrests were made between 2021 and 2022, uncovering a network of conspirators who carefully planned the fraud. Evidence recovered from mobile phones, routers, and forged documents solidified the case against the gang.

The investigation revealed:

• 49 successful Small Business Grant applications, totaling £490,000.

• 46 fraudulent claims under HMRC schemes, netting £559,000.

• 25 Bounce Back Loans, amounting to £1.25 million.

Birmingham City Council’s Legal Services played a crucial role in securing convictions, with Judge Roderick Henderson commending their “impressive, diligent, and far-reaching” efforts.

Sentences Handed Down

During two trials spanning June to August 2024, all 12 defendants either pleaded guilty or were convicted. Sentencing took place on December 6, with Judge Henderson highlighting the significant impact of the fraud during a national emergency.

• Qirat Deeas, 51, of Moseley, Birmingham: 7 years, 7 months.

• Ummer Yousaf, 40, of Quinton, Birmingham: 8 years.

• Sajid Hussain, 36, of Erdington, Birmingham: 5 years.

• Sameer Mohammed, 34, of Walsall: 4 years, 9 months.

• Noah Deen, 32, of Erdington, Birmingham: 5 years, 3 months.

• Usaamah Bin Taariq, 26, of Moseley, Birmingham: 4 years.

• Tassadaq Hussain, 54, of Bradford: 4 years, 9 months.

• Imaan Hussain, 24, of Bradford: 4 years, 9 months.

• Naqeeb Shakurt, 26, of Hall Green, Birmingham: 4 years, 9 months.

• Al-Harris Hussain, 30, of Bradford: 2 years suspended for 2 years.

Two defendants, Zishan Ahmed, 30, of Quinton, Birmingham, and Harun Shehzad, 29, of Edgbaston, Birmingham, will be sentenced at a later date.

Operation’s Leaders

Deeas and Yousaf were identified as the leaders of the conspiracy. Yousaf, described as the “forger” and the “brains” behind the money laundering operation, played a central role in creating fake documents and facilitating the scheme.

Impact and Legacy

The sentences serve as a warning to those seeking to exploit government support systems, reaffirming the importance of protecting public funds.

“This was public money,” said Mark Jackson, “and the defendants set out to dishonestly take as much as they possibly could, then launder it outside the UK jurisdiction.”

ACCESS TO THE LAW: Understanding the Crime and Sentencing

As part of our campaign to improve citizens’ access and understanding of UK Criminal law, we will be explaining the relevant UK legislation surrounding any case law relevant to our articles:

ACCESS TO THE LAW: Fraud and COVID-19 Support Scheme Abuse

As part of our campaign to improve citizens’ access to and understanding of UK criminal law, we are explaining the legal framework governing cases like the £2.5 million COVID-19 support fraud uncovered in Birmingham.

The offences committed in this case fall under the Fraud Act 2006 and related financial crime legislation. These laws are designed to prevent abuse of public funds and ensure accountability in the use of government support schemes.

Key Legal Provisions Relevant to This Case:

1. Fraud by False Representation (Section 2, Fraud Act 2006)

The conspirators submitted fraudulent applications for COVID-19 relief schemes, falsely claiming to represent legitimate businesses. This offence involves intentionally providing false information to gain financially or cause loss to another.

2. Conspiracy to Commit Fraud (Section 1, Criminal Law Act 1977)

The group worked together to orchestrate a large-scale conspiracy, combining false claims, forged documents, and stolen identities. Under this law, planning and acting in concert to commit fraud increases culpability.

3. Money Laundering (Proceeds of Crime Act 2002)

Laundering stolen funds through cryptocurrency and international transfers to destinations like Dubai and Istanbul is prohibited under this act. It targets those handling or benefiting from proceeds of crime.

The maximum sentence for offences under the Fraud Act 2006 is 10 years’ imprisonment and/or an unlimited fine. For conspiracy and money laundering, sentences vary based on the level of planning, the amount defrauded, and the harm caused to public resources. In this case, sentences ranged from suspended terms to over 8 years’ imprisonment.

This case highlights the serious consequences of defrauding public funds, especially during a national emergency. COVID-19 relief schemes were intended to support struggling businesses, making their abuse an aggravating factor in sentencing. The court’s actions underscore the importance of protecting public trust and ensuring funds reach those in genuine need.

Well, that’s all for now. But until our next article, please stay tuned, stay informed, but most of all stay safe, and I’ll see you then.

Jason King

Birmingham City-Desk

Twitter (X) @JasonKingNews

Jasonkingnews@gmail.com