Construction boss jailed for £6.9m payroll fraud

Grant Prior 9 years ago
Share

A construction boss is among three Kent men jailed for a total of 19 years for stealing £6.9m in taxes to fund their lavish lifestyles.

Co-conspirators Aquil Ahmed, 60, an accountant; Victor Shearer, 43, a construction services company director; and Christopher Azzopardi, 37, a payroll administrator employed by Ahmed ran the con for two-and-a-half years

They cheated HM Revenue and Customs of VAT, Income Tax, National Insurance Contributions and Construction Industry Scheme (CIS) deductions.

The men attempted to hide their fraud by using a complex network of companies and bank accounts in the UK and offshore. But their crimes were uncovered by investigators from HMRC.

Ahmed employed Azzopardi to operate payroll services for clients through his various ‘Keepers’ companies, supposedly calculating wages and paying any tax due to HMRC through the PAYE and CIS systems.

Clients were charged VAT on these services, but neither the VAT nor the PAYE and CIS deductions were paid across to HMRC.

Shearer’s company, Leaner Logistics, supplies short-term contractors to the construction industry, mainly in London and the South East.

Often providing hundreds of workers at a time, Shearer turned to Ahmed’s Keepers companies to run his payroll and CIS.

Over time, Shearer introduced other clients to the payroll company, who also used this fraudulent scheme.

But rather than pay the tax and National Insurance to HMRC, the three men stole the money to fund Ahmed and Shearer’s lavish lifestyles.

Ahmed owned a Bentley; bought properties in the UK, USA and Turkey; and took multiple foreign holidays, including trips to Dubai and the Monaco Grand Prix.

Shearer was also found guilty of laundering his £1.2m cut through a bank account in Gibraltar.

The court heard how vast sums were spent by Shearer, through bank transfers, cash withdrawals and by debit card, on property and high-living, ski holidays, cars and treating friends, family and clients.

Chris Gill, Assistant Director, Fraud Investigation Service, HMRC, said: “These men were driven by greed, abusing systems that are designed to ensure workers are paid correctly and taxes paid to HMRC.

“They were all professionals who knew they were breaking the law, but as an accountant Ahmed was in a position of trust, making his part in the conspiracy even more deplorable.

“These criminals thought they’d created a sophisticated fraud, and that by operating through numerous UK and offshore companies, they could hide what they were doing.

“But our investigations are thorough, and with assistance from authorities in Gibraltar, we unravelled the many layers they’d created and they are now paying the price for their crimes.

Ahmed, Azzopardi and Shearer were sentenced to 7 years 8 months, 4 years and 7 years 6 months imprisonment, respectively, when they appeared at Maidstone Crown Court last week.

Latest news

Balfour Beatty terminates Danny Sullivan labour deals

Around 500 workers on HS2 will be moved to alternative agencies or be taken on direct
1 day ago

Trio face prosecution after Hinkley site death

Main contractors and client to face charges over death of site supervisor
1 day ago

Buyers see recovery in house building sector

But civil and commercial work still in the doldrums
2 days ago

Apprentice saws-off thumb on hotel refurb site

Court hears how digit was reattached and teenager continued training with another firm
2 days ago

Laing O’Rourke tops June contracts league

£919m animal super lab dominates new orders
2 days ago

TSL turnover smashes £500m as profit almost trebles

Data centre and logistics contractor rises high on surging demand
2 days ago

Gleeson Homes chief exec leaves business after restructure

Management revamp after "challenging" year
2 days ago

Green light for 1,600-home Oldham town centre overhaul

Plans for over 1,600 homes across six regeneration sites approved
2 days ago

DSM wins Norwich city centre clearance job

Anglia Square shopping centre clearance for £300m scheme
2 days ago

13-year-old becomes UK’s youngest qualified digger driver

Grandson of Gallagher Group chairman sets industry record
2 days ago

Cubby reborn in £12m Svella-backed takeover

£50m revenue target set as 14 firms combine under new Cubby Group banner
3 days ago

North East NHS trusts plot £3bn health estate overhaul

Market engagement begins for major construction push across four trusts
3 days ago

HG goes green on cranes in £1.2m switch to battery power

Diesel-free crane drive cuts fuel bills by 94%
3 days ago

Developer fined £165,000 for fire safety failings

Firm ignored fire safety orders on apartment job in Preston
3 days ago

Bidding to start for £1.8bn North West framework

Contractors invited to bid for latest Procure Partnerships deal
3 days ago

Hill hits record £90m profit as homes pipeline swells

Build-to-rent push and £4.8bn contracting book to fuel next growth phase
4 days ago

Rayner unveils £39bn plan to build 300,000 social homes

Council building revival and rent reform feature in social and affordable homes plan
4 days ago

Keltbray bounces back with £3.2m profit

Tighter controls and smarter project selection fuel strong turnaround
4 days ago

VINCI JV wins 500-home twin town centre revamps

Chester Northgate phase 2 and Northwich Weaver Square schemes move to delivery stage
4 days ago

80 energy projects unlocked as Ofgem backs grid expansion

£24bn energy networks deal gets green light from regulator
5 days ago

How to see your stories on the Enquirer

Join our Suppliers and Buyers directory to get your news published
4 days ago

Henley lands Midland Mill revamp on Leeds tower scheme

Restoration of 18th-century mill kicks off on South Bank regeneration project
4 days ago

New boss at Eric Wright Civil Engineering

Gavin Hulme takes top job as Diane Bourne moves to group role
4 days ago

Pinewood submits £1bn data centre plan

Studio giant adds green and learning spaces to tech hub blueprint
5 days ago

Record results after TClarke goes private

Britain's biggest M&E contractor flourishes after de-listing
5 days ago

Dalkia lands £200m nuclear maintenance deal

1,000 nuclear FM staff to join M&E contractor
5 days ago

Construction comeback to outpace wider economy

Arcadis forecast fueled by spending review optimism
6 days ago

First steel goes up on giant car battery site

Severfield gets to work on McAlpine Somerset site
6 days ago

Permasteelisa wins cladding deal on Bovis city tower

Facade specialist lands package at 60 Gracechurch Street
5 days ago

Fox buys recycled asphalt specialist Fisher

Acquisition adds major recycled asphalt capacity in north west
6 days ago