A man from Surrey who masterminded a six-strong gang that fraudulently claimed £240,000 in VAT repayments by setting up a fake catering business, has been jailed for three and a half years
Michael Akindele recruited five others to launder the money through their bank accounts. The fraud was uncovered by HMRC’s VAT repayment taskforce, which also found Akindele had set up other fake businesses including a newsagents, tobacconist and IT consultants as part of the fraud.
In addition, the gang had hijacked an innocent person’s identity to start the catering business.
At Kingston Crown Court Akindele, a director of TGL Logistics, which handles exports mainly to Nigeria, and accomplice Abdul Mohamed both admitted money laundering. Akindele also pleaded guilty to cheating the public revenue.
As well as the three and a half years handed down to Akindele, Mohamed was sentenced to six months in jail, suspended for 15 months. He must also do 120 hours of unpaid work.
Four others, who pleaded guilty, were alongside them in the dock: Akindele’s wife Abimbola, who is an accountant; Sunday Adejobi; Abiodun Gbadamosi; and Kayode Sangosanya. They all admitted money laundering and were each sentenced to three months in jail, suspended for 12 months, and 100 hours of unpaid work.
Brett Wilkinson, assistant director, fraud investigation service, HMRC said: ‘This gang thought they were above the law and that they could get away with cheating the system. They were wrong and they are paying the price for their greed.
Report by Pat Sweet
