Multi-million pound mortgage fraudsters jailed

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Multi-million pound mortgage fraudsters jailed
Monday, March 21, 2011
Published by MILLIE DYSON
Regulation | 0 Comments
Two men involved in a £78 million mortgage fraud and an attempted £12 million VAT fraud have each been jailed for seven years.
HM Revenue & Customs investigators discovered that the two men had hijacked plans of a hotel project in Mauritius. They signed contracts with furniture providers to furnish the project and tried to reclaim over £12 million in VAT from HMRC.

The fraud was discovered before any money was paid out.

£8.8 million was paid out to the fraudsters in mortgage payments, but intervention by the Metropolitan Police prevented a further £70 million in fraudulent mortgage payments being made in relation to the purchase of two commercial premises.

Martin Conrad, (32) (also known as Mitain Conrad, Mitain Patel, and Conrad Martin) from Mauritius, (formerly of Wimbledon, London and Caterham, Surrey) and Richard Murkin (44) of Ashford, Kent, pleaded guilty in January 2011 to the fraudulent attempts to obtain the VAT repayment.

They also pleaded guilty to mortgage fraud, attempted mortgage fraud and money laundering offences after a Metropolitan Police investigation. They were both sentenced to five years for the mortgage fraud and two years for the VAT fraud, to run consecutively, at Southwark Crown Court today.

When passing sentence, His Honour Judge Pitts said:

"This was an audacious and sophisticated fraud, which required expert synchronisation."

Chris Martin, Assistant Director of Criminal Investigation for HMRC said:

“HMRC worked alongside the Metropolitan Police to bring these fraudsters to justice. Tax evasion is serious, blatant theft and we will continue to pursue those trading fraudulently to the full extent of the law.

"The sentences handed down will serve as a deterrent to anyone who thinks that fraud is a risk worth taking. HMRC investigators will look to recover the profits made from these illegal activities. I urge anyone with information about this type of crime to contact our customs hotline on 0800 59 5000 or email: customs.hotline@hmrc.gsi.gov.uk"

Detective Constable, Simon Hanrahan, from the Metropolitan Police’s Money Laundering Investigation Team said:

“Both Martin Conrad and Richard Murkin have been responsible for a series of audacious frauds which have caused substantial losses to financial institutions and much distress to innocent people who have found their homes sold without their knowledge.

"The sentencing reflects the seriousness of their crimes and sends out a clear message that the Metropolitan Police will actively pursue those who have committed large scale frauds and laundered the proceeds of their crimes.”