Omar Bassam, Paul Burke, Nicholas Skidmore and David Withers
controlled a network of companies, bank accounts and property in
the UK and the Cayman Islands.
The first stage of the frauds involved the importation of
computer memory modules into the UK under false invoices. The
components were undervalued by up to 1,000%- the value of one
consignment was declared as $2,000 where the true value was nearly
$1 million.
In the second stage, the computer dealers manufactured false
invoices to support massive VAT reclaims to which they were not
entitled. To add credibility to the invoices, they even “hijacked”
the details and VAT number of Compaq Computers.
The Customs’ investigation started in Birmingham and continued
in the US, Germany and the Republic of Ireland. Proceedings are
currently pending in the US against the fraudsters’ local
suppliers.
Financial investigations showed more than £85 million passing
through just one bank account between May 1998 and January 1999.
The assets of the four computer dealers have been seized by the
customs. One of the fraudsters, Withers, has also pleaded guilty to
an associated money laundering offence.
Bassam was sentenced to 18 months plus an additional 3 years if
he fails to pay nearly £800,000 compensation. Burke was sentenced
to 3 years on each of two charges to run concurrently with an
additional 2 years if he fails to pay £440,000 compensation.
Skidmore was sentenced to 7 years on each of four charges to run
concurrently with an additional 2 years if he fails to pay
compensation of £643,000.
Withers was sentenced to 6 years on each of two charges to
run concurrently plus 1 year for the money laundering charge
to run consecutively plus an additional 2 years if he fails to pay
compensation of £205,000.
