Brothers jailed for £50 million tax fraud

Two brothers, who stored illegal vodka before it was released into the UK market as part of a £50 million duty fraud, have been jailed. 

The men used a non-registered warehouse with a secret entrance, which was raided by HM Revenue and Customs (HMRC) officers.

Shakeel Awan (51), Imran Awan (43) and their accomplice, Michael Parker (53), all from Rochdale were found guilty of excise duty evasion in November 2012 at Manchester Crown Court. Their crime was linked to a wider conspiracy during an HMRC investigation.

HMRC officers raided the Rochdale industrial unit in 2007 after a covert surveillance operation tracking the movement of criminal gangs and illegal alcohol from Essex to the North West. The vodka was produced in Scotland and on paper was due to be exported to Belgium.

However, the co-conspirators diverted the consignment to Rochdale to a warehouse that was not licensed for the storage of duty-free goods and tried to conceal its location from HMRC. Access was through a secret door in a shower cubicle from an adjacent warehouse.

The revenue evaded on the Rochdale vodka was about £100,000.

Mike O’Grady, HMRC Assistant Director of Criminal Investigation, said: “These men have been linked to a much larger organised crime gang by evidence gathered during our investigation.

"Ultimately, the fraudsters diverted shipments of alcohol, produced in the UK and destined for export, in an attempt to evade over £50 million in excise duty. Despite their denials these three have been sentenced for their part in this wholesale fraud. The secret door in the shower cubicle was very telling evidence.

"Anyone who suspects illegal alcohol is being stored or sold locally can help us by calling the Customs’ hotline on 0800 59 5000.”