Judge Demands Investigation After Crime Gang Successfully Applied for £145,000 in Covid Bounce Back Loans

A judge has demanded an investigation after two members of an organised crime gang were able to successfully apply for £145,000 in Covid ‘bounce back’ loans.

Asif Hussain, the ringleader of an international ‘chop shop’ ring, which exported stolen Range Rovers and other expensive cars to Dubai, was able to secure £50,000 in funding offered by the Government to help businesses struggling during the pandemic.

Another gang member, Ibraaz Shafique, was able to receive two huge loans, firstly for £50,000 then for £45,000.

The maximum loan available was £50,000.

Both men had previous criminal convictions.

A judge said ‘the most basic of checks’ would have revealed the fraud, and demanded an explanation from the authorities within two weeks.

Judge Anthony Cross QC said it ‘defies belief’ that Hussain, who has 48 previous offences on his record and was previously jailed for four years for drug dealing, was given funding.

It is the second time that the M.E.N. have revealed how Greater Manchester crime gangs have been able to play the system to receive cash.

A drugs gang was able to obtain a £25,000 coronavirus recovery loan from the government, using a a once-legitimate business to apply.

“Here the most basic of checks would have revealed the fraud,” Judge Cross said of Hussain and Shafique case.

“The public are entitled to an explanation as to how these loans were obtained.

“That explanation must made public.

“I require an explanation form the relevant body within 14 days.”

A judge said the abuse of the system by Hussain and Shafique demonstrated ‘moral depravity of the highest order’.

“At a time when genuine businesses were being devastated by the pandemic, you that are concerned with that aspect of this case, showed your utter contempt for others,” the judge told the pair.

Hussain was jailed for 15 years for his role in the gang, while Shafique was locked up for five years.

The gang exported stolen cars to the Middle East, or stripped them down for parts.

More than 95 cars were stolen, including Range Rovers, Porsches and Mercedes, worth £3 million.

Hussain was the director of a firm called German Automotive 365 Ltd, a business selling and buying cars and offering maintenance.

Prosecutors said the firm never submitted a tax return, and there was no records of the company being registered for VAT.

The company received a £50,000 payment a week after making an application.

Shafique, a director of Merc Car Breakers Ltd, set up a Lloyds bank account a month after being made a director.

He also received a £50,000 loan.

A few months later, Shafique received a second loan, this time for £45,000, after opening a another bank account for his work as a sole trader in computing.

Just five days after opening the bank account, he received the loan.

He then transferred the sum to his Merc Car Breakers bank account, and then sent the majority to his personal account.

The government introduced the ‘bounce back’ loan scheme in April 2020, at the height of the pandemic.

It was set up to help small and medium-sized businesses to borrow between £2,000 and up to 25 per cent of their turnover.

The government guaranteed 100pc of the loan, and there were no fees or interest to pay for the first year.

The scheme closed on March 31 last year.

A third-party review of the scheme revealed that while some risks can be mitigated, there remained a “very high” level of fraud risk.

The risk was caused by self-certification, multiple applications, lack of legitimate business and impersonation as well organised crime.

Originally the scheme was expected to cost about £18 billion to £26 billion, but that later increased to between £38 to £48 billion.

Hussain, 44, of Tonge Moor Road, Bolton, pleaded guilty to conspiracy to steal, conspiracy to handle stolen goods, conspiracy to export and fraud.

Ibraaz Shafique, 23, of Camberwell Street, Oldham, pleaded guilty to conspiracy to handle stolen goods, conspiracy to export and fraud.

Article credit: https://www.manchestereveningnews.co.uk/news/greater-manchester-news/judge-demands-investigation-within-days-22820821