Twelve men convicted of £2.5m COVID grant fraud

Twelve members of a national ‘organised crime group’ have been convicted of fraudulently claiming in excess of £2.4 million worth of COVID-19 support grants.

It follows an investigation by Birmingham City Council.

The group, from Birmingham, Walsall, and Yorkshire, used non-trading businesses and stolen identities to cash in on support packages set up during the COVID-19 crisis, making hundreds of fraudulent claims for COVID-19 grants, Bounce Back Loans, and HMRC support payments.

Cllr Sam Forsyth, chair of Birmingham City Council’s licensing and public protection committee, said: “These were wicked crimes during a national emergency. Across the country people were suffering during the pandemic but most people were determined to help each other. However, these men saw an opportunity to fraudulently make money, taking funds from the public purse.

“These convictions should make absolutely clear that if you behave like this you will be caught and face the consequences of your actions. The investigation has been long and complex and I would like to extend huge thanks to everyone involved.”

Following a long-running investigation by the council’s Trading Standards service, the men appeared before Birmingham Crown Court over two trials – split because of the number of defendants – each of the 12 either entered guilty pleas or were convicted after trial of offences including conspiracy to defraud and money laundering.

Mr Mark Jackson and Lucinda Wilmott-Lascelles, prosecuting on behalf of Birmingham City Council, said the group was 'responsible for a very well-planned, sophisticated and sustained attack upon the financial support measures put in place by the UK government to try to support businesses and individuals struggling during and as a result of the COVID-19 pandemic.

The court heard that there were a number of support packages set up during the pandemic, including Small Business Grants, Bounce Back loans and the Eat Out to Help Out scheme. They were all designed to offer financial support to businesses and individuals who were struggling during the COVID-19 crisis that began in 2020. Fraudulent HMRC Self-Assessment and VAT claims were also submitted.

The court heard that the group saw an opportunity to take advantage of the schemes and became directors of companies that were not trading or used stolen identities to make fraudulent applications for cash. They opened multiple bank accounts and also persuaded other people to use theirs in exchange for payment before the money was laundered through multiple accounts before being transferred out of the UK jurisdiction via accounts in the Netherlands and the United Arab Emirates.

The crime group were responsible for submitting fraudulent applications for at least 53 Small Business Grant Fund to the total value of over £530,000 from five different local authorities.

They obtained public funds in the form of HMRC Self-Assessment and Eat Out To Help Out scheme payments to the value of in excess of £530,000.00.

They also obtained at least 26 Bounce Back loans totalling £1,300,000+ from seven different banks.

The court head that the defendants used more than 50 different companies and over 100 different bank accounts in their fraud and money laundering operation.

Birmingham City Council initially started an investigation into the organised large scale obtaining of funds – initially the Small Business Grant Funds – back in 2020.

As the investigation progressed, evidence was found that indicated the defendants were working with and as part of an organised crime group. The investigation was supported by West Midlands Police.

Cllr John Cotton, leader of the city council, added: “To attempt to defraud the taxpayer, and potentially deprive others of vital funds, during a global pandemic is an abhorrent crime. My thanks go to the council officers and our partners who have worked so hard to bring these criminals to justice.”

The men included:

• Qirat Deeas, 50, from Moseley, Birmingham
• Ummer Yousaf, 40, from Quinton, Birmingham
• Usaamah Bin Taariq, 25, from Moseley Birmingham
• Zishan Ahmed, 30, from Quinton, Birmingham
• Noah Deen, 31, from Quinton, Birmingham
• Sajid Hussain, 36, from Birmingham
• Naqeeb Shakurt, 26, from Birmingham
• Harun Shehzad, 29, from Birmingham
• Sameer Ali Mohammed, 34, from Walsall
• Tasaddaq Hussain, 54, from Bingley
• Imaan Hussain, 24, from Bingley
• Al-Harris Hussain, 29, from Bingley

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