Luton man handed suspended sentence for laundering millions in insolvency fraud scheme
A man from Luton who laundered millions of pounds through a network of accounts and companies has been given a suspended sentence.
Christopher Francis, 40, and of Letchworth Road, was responsible for funnelling money from disqualified director Tariq Sarwar, through his food and drinks company.
Sarwar, 59, knew his company was in financial difficulty and likely to be wound up when he sold commercial property in Salford – his company’s only substantial asset – for more than £5 million.
He then fraudulently transferred more than £3 million from the proceeds of the sale to Francis without paying the outstanding debts to HMRC and other creditors.
Francis laundered the funds through a network of accounts and other companies back to Sarwar.
Creditors were owed more than £500,000 while Sarwar and his family lived in luxury in a six-bedroom home filled with designer products from Versace and Louis Vuitton in the Cheshire countryside.
Sarwar, of Gore Lane, Alderley Edge, admitted to fraudulently removing assets in anticipation of winding-up and acting as a company director while disqualified.
He was jailed for four years and banned as a company director for 10 years when he appeared at Manchester Crown Court today (Friday).
Francis pleaded guilty in the middle of his trial to one count of money laundering under the Proceeds of Crime Act 2002.
He was sentenced to two years and one month in prison, suspended for two years. Francis was also ordered to carry out 250 hours of unpaid work.
The Insolvency Service has already started investigations to confiscate the funds.
David Snasdell, Chief Investigator at the Insolvency Service, said: “Tariq Sarwar and Christopher Francis went to considerable lengths to hide their criminal actions, moving millions of pounds through a web of companies to cover their tracks.
“Property companies do not hand more than £3 million to an unconnected food and drinks business out of generosity. This was fraud, plain and simple.
“The Insolvency Service will continue to pursue confiscation proceedings to ensure Sarwar and Francis do not get to keep what was never rightfully theirs.”