The ringleader behind one of the UK’s largest ever carousel tax frauds has been ordered to repay more than £90 million, following his conviction in a vast criminal enterprise.
Arif Patel, 57, from Preston, was convicted in 2023 of multiple offences including false accounting, conspiracy to cheat the public revenue, selling counterfeit clothing, and laundering money. Patel and his gang attempted to steal £97 million through fraudulent VAT claims on fake exports of textiles and mobile phones.
The criminal group also trafficked in counterfeit clothing, which—if genuine—would have had a street value of £50 million.
Now, a judge at Chester Crown Court has ruled that Patel’s assets, including properties in six countries and a Ferrari, must be sold. The proceeds will be used to reimburse the UK taxpayer and fund public services.
Patel, alongside his associate Mohamed Jaffar, 61, based in Dubai, was found guilty following a large-scale investigation by HM Revenue & Customs (HMRC) and Lancashire Police. Their efforts helped convict 24 other gang members, who were sentenced to a combined 116 years in prison.
Operating from his company Faisaltex Ltd in Preston, Patel built a “property empire” with proceeds from the scam. His assets spanned Preston, London, Morocco, the UAE, Saudi Arabia, and Turkey. Authorities described this confiscation order as one of the largest ever recovered in the UK.
Richard Las, Director of the Fraud Investigation Service at HMRC, said:
“Arif Patel lived a lavish lifestyle at the expense of the law-abiding majority, but he will now lose the property empire he amassed from the proceeds of crime.”
He added that HMRC’s work continues after convictions, and this case represents a major success in returning stolen funds to public services.
Mark Winstanley, Assistant Chief Constable of Lancashire Constabulary, described Patel as the head of a Preston-based Organised Crime Group.
“Motivated by greed, his actions cost the taxpayer millions. This multi-agency effort has ensured he will not profit from his crimes.”
He added that Patel’s co-accused, Mohamed Jaffar Ali—who helped move illicit funds offshore—has also been hit with a confiscation order totalling £677,000.
Carousel fraud, also known as Missing Trader Intra-Community (MTIC) fraud, involves faking international trade of goods in order to falsely claim VAT refunds. In Patel’s case, the entire supply chain was fabricated to create a fraudulent paper trail.
Patel fled to Dubai in 2011 and failed to return to the UK. Both he and Jaffar Ali were sentenced in their absence to a combined 31 years in prison.
