Shahid Mohammad, the ringleader of a gang that orchestrated a complex fraud scheme, has been sentenced to six years in prison for his role in establishing 90 fake companies that collectively stole over £800,000.
The Derby-based criminal led a group that created a fraudulent recruitment firm to steal identities and misused them for illicit gains. His co-defendants received suspended sentences.
A thorough investigation by HM Revenue and Customs (HMRC), alongside Derbyshire and West Midlands Police, revealed that the gang exploited 91 stolen identities to file claims between January 2015 and November 2016, illegally pocketing £390,980. They also submitted fraudulent VAT repayments totaling £80,716.
Mohammad, 31, along with five accomplices—Zahid Mohammad, 30, Mohammed Maroof, 28, Adnan Sharif, 43, Mohsan Hussain, 25, and Usman Sharif, 41—was convicted following a trial at Birmingham Crown Court that concluded in March 2024.
Mark Robinson, operational lead of HMRC’s Fraud Investigation Service, stated, “Shahid Mohammad and his gang caused immense distress to innocent individuals whose identities were stolen. Their elaborate scheme siphoned off vital funds from public services.”
The fraudsters set up a fake recruitment agency to gather personal information and falsely listed individuals as directors of nonexistent car dealerships without their consent. They used vacant addresses across the Midlands for these fake businesses.
Information obtained through the recruitment firm facilitated fake vehicle sales and fraudulent car finance agreements. Once funds were released by lenders, the money was funneled through various bank accounts and withdrawn in cash. The gang also attempted to claim additional VAT repayments.
Interestingly, the trial proceeded without a jury after the original jury was discharged due to interference allegations. In January, the High Court permitted Judge Andrew Smith to complete the trial and issue verdicts independently.
All six men were sentenced at Birmingham Crown Court on May 9.