Birmingham gang convicted for £2.5m Covid fraud

TWELVE members of an organised crime group from Birmingham, Walsall, and Yorkshire have been found guilty of defrauding over £2.5 million in Covid support grants through fraudulent claims.

The crime group exploited non-trading businesses and stolen identities to submit multiple Covid support claims, including Bounce Back Loans, HMRC payments, and various grants set up to assist struggling businesses and individuals during the pandemic.

The convicted were, Qirat Deeas, 50, of The Hurst, Moseley, Birmingham; Ummer Yousaf, 40, of Bent Avenue, Quinton; Usaamah Bin Taariq, 25, of The Hurst, Moseley; Zishan Ahmed, 30, of Higgins Lane, Quinton; Noah Deen, 31 of Wood End Road; Sajid Hussain, 36, of Flackwell Road; Naqeeb Shakurt, 26, of Springcroft Road; Harun Shehzad, 29, of City Road; Sameer Ali Mohammed, 34, of Waterfront Way, Walsall; Tasaddaq Hussain, 54, of Northfield Crescent, Bingley; Imaan Hussain, 24, of Northfield Crescent and Al-Harris Hussain, 29, of Thornbury Grove, Bingley.

All twelve were convicted, with ten sentenced at Birmingham Crown Court on Friday (6) at Birmingham Crown Court. Judge Roderick Henderson said, "This was a continuous and sophisticated fraud, exploiting the community during a national emergency. The haste in distributing funds meant that checks were minimal. These defendants took advantage of the situation and profited from it."

Their fraudulent activities spanned several support schemes such as Small Business Grants and the Eat Out to Help Out initiative.

The convictions followed two separate trials at Birmingham Crown Court, necessitated by the large number of defendants involved. Each of the 12 members either entered guilty pleas or were convicted after trial on charges including conspiracy to defraud and money laundering.

The group’s operations were described as a "well-planned, sophisticated, and sustained attack" on the financial support measures put in place by the UK government during the pandemic.

Mark Jackson and Lucinda Wilmott-Lascelles, prosecuting for Birmingham City Council, detailed how the group took advantage of the pandemic relief schemes by becoming directors of inactive companies or using stolen identities to submit fraudulent applications for funds.

They established numerous bank accounts and recruited others to use their accounts in exchange for payments, which were subsequently laundered through a complex network, including accounts in the Netherlands and the United Arab Emirates.

The crime group was responsible for submitting fraudulent applications for at least 53 Small Business Grant Funds valued at over £530,000 across five local authorities. They also accessed public funds via HMRC Self-Assessment and Eat Out To Help Out payments totalling more than £530,000, and obtained at least 26 Bounce Back Loans totalling over £1.3m from seven banks.

The court heard that the group used more than 50 companies and over 100 different bank accounts as part of their fraud and money laundering operation.

The investigation into the group’s activities began in 2020 when Birmingham City Council’s Trading Standards service started looking into large-scale misuse of the Small Business Grant Funds. As the investigation progressed, evidence emerged indicating the defendants were working as part of an organised crime group. The investigation was supported by West Midlands Police.

Cllr Sam Forsyth, chair of Birmingham City Council’s licensing and public protection committee, condemned the crime as “wicked during a national emergency.”

Forsyth stressed that while many were struggling during the pandemic, these individuals saw an opportunity to exploit the system for personal gain. “These convictions should serve as a strong warning that if you engage in such behaviour, you will be caught and held accountable,” Forsyth said. “The investigation was complex and lengthy, and I extend my thanks to everyone who played a role in bringing these criminals to justice.”

Cllr John Cotton, leader of the city council, described the attempt to defraud taxpayers as “abhorrent.” He praised the efforts of council officers and partners who worked tirelessly to bring the criminals to justice.

“Attempting to deprive others of vital funds during a global pandemic is unforgivable,” Cotton said. “These convictions make it clear that such behaviour will not go unpunished.”

The gang were convicted and sentenced as follows:

Qirat Deeas admitted two counts of conspiracy to defraud and two counts of money laundering. He was sentenced to seven years and seven months.

Ummer Yousaf was found guilty of two counts of conspiracy to defraud, two counts of money laundering, and failing to comply with a RIPA notice. He received an eight-year sentence.

Sajid Hussain admitted two counts of conspiracy to defraud and one count of money laundering. He was sentenced to five years.

Sameer Mohammed admitted two counts of conspiracy to defraud and one count of money laundering. His sentence was four years and nine months.

Noah Deen pleaded guilty to two counts of conspiracy to defraud and one count of money laundering. He was sentenced to five years and three months.

Usaamah Bin Taariq admitted two counts of conspiracy to defraud and one count of money laundering. He was sentenced to four years.

Tassadaq Hussain admitted one count each of conspiracy to defraud and money laundering. He was sentenced to four years and nine months.

Imaan Hussain admitted two counts of conspiracy to defraud and one count of money laundering. He received a four-year and nine-month sentence.

Naqeeb Shakurt admitted two counts of conspiracy to defraud and one count of money laundering. His sentence was four years and nine months.

Al-Harris Hussain was found guilty of one count of money laundering and sentenced to two years suspended for two years.

Zishan Ahmed and Harun Shehzad both admitted two counts of conspiracy to defraud and one count of money laundering. Their sentencing will take place at a later date.