Feeds

MP's son guilty of VAT carousel fraud

Dad will 'contest the verdict'

Top three mobile application threats

The son of Labour MP Mohammed Sarwar has been convicted of an £850,000 money laundering scam involving imported mobile phones.

The Glasgow High Court heard that Athif Sarwar, 28 of Lynebank Place, Mearnskirk had handled thousands of pounds of money described as "criminal property", the BBC reports.

Sarwar was found guilty of laundering various sums of money between 24 February and 25 April 2003 while working as a cash-and-carry manager at United Wholesale (Scotland) Ltd based in Maxwell Road, Glasgow.

Assistant manager of the cash and carry firm, Mansoor Khan, 43, of Giffnock, Glasgow, who had been co-accused in the case, was found not guilty of any involvement in the money laundering scam.

The money or "criminal property" was said to have been received by Sarwar who then electronically transferred the cash into the firm's business account.

The Court heard that cash was taken from the proceeds of a complex Missing Trader Intra-Community (MTIC), or "carousel fraud" as it is more commonly known, using mobile phones to bypass VAT payments when the goods enter the UK from Europe.

Sarwar, who had strongly disputed having any involvement in the scam, was granted bail and will be sentenced in June. His father, who is a millionaire businessman and Labour MP for Govan said he was "disappointed" by his son's conviction.

The MP, who had previously been found not guilty of trying to bribe a rival candidate in the 1997 general election, is said to be worth an estimated £16m.

"I genuinely, sincerely and passionately believe that my son has done nothing wrong. Everything was legal and above board.

"We will contest the verdict. There was no shred of evidence to convict and we will appeal against the sentence. I am certain that justice will win."

Sarwar was found guilty on two charges, one of laundering £565,000 as part of a VAT fraud scam and the second of moving £280,500 from the firm's bank account to another held by a shell company.

From 1 June this year, Her Majesty's Revenue and Customs (HMRC) will place a "reverse charge" on computer chips and mobile phones, to combat VAT fraud.

According to official figures from HMRC, carousel fraud cost British taxpayers £3bn last year. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.