Gravesend fraudster must repay £13million or spend 10 more years in jail for tax scam
PUBLISHED: 10:52 18 October 2013 | UPDATED: 10:52 18 October 2013
A Gravesend fraudster who splashed out on luxury cars using millions from a tax scam has been ordered to repay nearly £13million or spend 10 more years in jail.
Sandeep Singh Dosanjh, 31, of Singlewell Road, was the leader of an organised criminal gang that set up a complex chain of companies to trade fraudulently in EU carbon credits, which are meant to reduce pollution emissions.
He spent some of his share of the proceeds on luxury cars including a Rolls Royce, Mercedes and Range Rover, and tried to hide money in offshore bank accounts.
Robert Alder, of HMRC criminal investigations, said: “Dosanjh enjoyed a lavish lifestyle, investing the proceeds of his crimes in property and luxury cars.
“This was a complex and lengthy financial investigation requiring enquires to be made with overseas authorities.”
Dosanjh must pay HM Revenue and Customs (HMRC) £3m of hidden assets within three months and the rest of the £12.9m in six months.
He was jailed for 15 years at Southwark Crown Court in June 2012 after being convicted of fraudulent trading of emissions allowances.
The first fraud of its kind earned Dosanjh and the gang £38m in just six months in 2009.
The scam resulted in a new law being created specifically to stop carbon credit VAT fraud.
By creating bogus companies, they imported carbon credits free of VAT into the UK, and then sold them off, charging VAT and keeping it for themselves.
They dissolved importing companies to cover their tracks and passed the credits through several fake companies before they were sold to real firms.
The trades took just minutes via a computer system, and the stolen VAT was transferred to offshore bank accounts in the United Arab Emirates.
HMRC is also recovering cash from the two other members of the gang.