Accountant jailed for £2.8m VAT con

A corrupt Black Country accountant who masterminded a £2.5 million VAT fraud has been jailed for four years.

Unscrupulous Parmjit Rana recruited clients and business associates to help with the scam that ran for five years. The 47-year-old father of two set up 19 fake travel businesses throughout the UK and used them to put in VAT claims on non-existent businesses

Travel services such as coach companies are allowed to recover VAT spent on fuel and other operating costs and Rana cashed in on that system by reclaiming VAT supposedly done by the bogus companies, prosecutor Paul Sharkey told Wolverhampton Crown Court yesterday afternoon.

Bank accounts were established to receive VAT repayments from the Government for the phoney work and the money was then withdrawn in cash.

The bent accountant "used his persuasive and controlling mind" to manipulate clients and others in to helping to run the racket, the court heard.

It scooped £2.5 million between February 2003 and March 2008 before being smashed by Revenue and Customs investigators, concluded Mr Sharkey.

Michael Wolfkind, QC, defending Rana, said: "His conduct was disgraceful. The public expects members of an honourable profession to behave properly and resist the temptation to take quick and illegal routes to solve financial problems."

Rana from Vicarage Road, Smethwick, like the other defendants admitted conspiracy to cheat the Revenue

Graham Scriven, a 53-year-old printer and designer from Wilden Top road, Stourport on Severn and Ajmir Kooner Sing, aged 41, of Birmingham road, Great Barr were each jailed for 15 months.

Amrit Mangat, 57, of Westfield Road, Edgbaston was given a six month sentence suspended under supervision for 18 months after the court heard that he had been prepared to give evidence for the prosecution.