Arif Patel, convicted in one of the UK’s biggest tax fraud cases, faces a Confiscation Order to recover illicit gains from counterfeit clothing and VAT scams
An Indian-origin fraudster at the centre of one of the UK’s largest tax frauds has been ordered to pay back more than £90 million following a major court ruling, reported ndtv.com.
On Thursday, the Crown Prosecution Service (CPS) announced that Chester Crown Court had issued a Confiscation Order against Patel, allowing authorities to sell his assets to recover the funds. “The CPS has worked robustly with HMRC and Lancashire Police to ensure Patel could not profit from his counterfeit designer clothes scam and fraudulent VAT claims,” said Adrian Foster, Chief Crown Prosecutor. Patel must repay over £90 million or face additional prison time.
According to UK prosecutors, Patel and his gang orchestrated a massive fraud by stealing £33.4 million through fake VAT repayment claims on sham textile and mobile phone exports. They also imported and sold counterfeit clothing worth £19.19 million, concealing their activities through a network of fake companies. Profits were funneled into property across Preston and London via offshore accounts.
Arif Patel, 57, a clothing manufacturer from Preston who now lives in Dubai, was convicted in 2023 for false accounting, conspiracy to cheat public revenue, and money laundering
“Arif Patel lived a lavish lifestyle at the expense of the law-abiding majority, but he will now lose the property empire he amassed from crime,” said Richard Las, Director of HMRC’s Fraud Investigation Service. He confirmed the money would be redirected to fund public services.
Patel was sentenced in absentia to 20 years in prison in April 2023, while 26 members of his criminal empire were also convicted across six trials between 2011 and 2023, with total jail terms of over 147 years. Patel, however, fled to Dubai in 2011 and has not returned to the UK since.
Lancashire Police’s Assistant Chief Constable Mark Winstanley said: “Patel’s greed-driven actions cost millions and hurt taxpayers. The confiscation order of £90,503,211 ensures his criminal gains are reclaimed for the public purse.”
