A 23-year-old who ran a fraudulent business from his bedroom has been jailed for submitting a fake VAT claim of over £788,000.
Ranvir Singh Malhi, director of computer components supplier RonsElectronics, registered the company first in Newcastle-under-Lyme and later in Mayfair. The business was actually operated from his bedroom. Malhi has been banned from being a company director for nine years, Stoke-on-Trent Live reported.
Prosecutor Daniel Bishop told Stoke-on-Trent Crown Court that Malhi claimed RonsElectronics had an estimated turnover of £500,000 and submitted an online VAT return to HMRC in November 2022 showing £8.5 million in sales and requesting a refund of £788,159.58. HMRC officer requested further information, and between December 2022 and January 2023, Malhi provided bank statements, invoices, and accounts. Investigations later found the invoices were false.
Malhi admitted fraud by false representation and being knowingly concerned in the fraudulent evasion of VAT. He was sentenced to 54 months in prison.
Mitigating, Timothy Cray said Malhi felt remorse, had brought shame on his family, and had health issues affecting his studies. Recorder Anthony Warner said the fraud was premeditated and noted Malhi had put a promising career in jeopardy.
