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30 August 2012



Go Straight to Prison – Do Not Pass Go or Collect £200

A benefit and mortgage fraudster has been sent back to prison after failing to pay his Confiscation Order under the Proceeds of Crime Act. 

Mohammed Wasi Sheikh, 48, formerly of Northview Road, Luton, was sentenced to 15 months in prison in February 2010. He pleaded guilty to eight fraud charges relating to housing benefit claims, income support claims and mortgage fraud and had served the sentence for the crimes he committed.  

He had also been ordered to repay money to the state through a Confiscation Order granted under the Proceeds of Crime Act, which he failed to do, and as a result is now beginning a further 21 months in prison.  

Luton Crown Court heard at the POCA Confiscation Order hearing in April 2011, that the total value of Sheikh’s fraud was £398,482, with the criminal benefit to him deemed to be £265,100. The court assessed his available assets to be £67,131.57. He was ordered to repay this amount to the taxpayer within six months, or face a further spell in prison.  

Last Friday (Aug 24) Sheikh was back before the court for a Default Hearing, having not made any   payment at all, and was returned to prison for 21 months which he will serve in full. When he is released, the Confiscation Order will still be payable, and he will still owe the full £67,131.57.       

The fraud came to light in 2008 when Luton Borough Council and the Department of Work and Pensions became suspicious about his benefit claims. Bedfordshire Police became involved and it was discovered that both Wasi and his brother Mohammed Zaki Sheikh had obtained mortgages brokered by London man, Gillies St Juste.  

St Juste, also known as Anthony Yates or Mohammed Ibrahim, aged 48, had been a mortgage broker and had used this status to arrange a large amount of fraudulent mortgages for himself and others. He had even re-mortgaged his own mother’s home without her knowledge, using someone else’s name. He was eventually jailed for four and half years for eleven charges of various fraudulent activities totalling around £1.5 million.  

The Sheikh brothers had presented false statements about their income in order to buy property.* Zaki Sheikh, 50, of Cutenhoe Road, Luton, was given a 12 month suspended jail sentence and 200 hours of unpaid work for falsely presenting payslips in order to get a mortgage on his home.  

“We do a lot of publicity on this subject because there is a perception amongst both criminals and the general public that once you’ve “done your time”, it’s a free pass to enjoy the fruits of your dishonest labour. That idea could not be further from the truth. When people have been convicted of a crime where they have benefited financially, a Confiscation Order to recover their ill gotten gains is made against them,” said Sgt Giles Hutchinson, who investigated the case from the police side.  

“The fact is that a Confiscation Order stays with you until the day you die or until you pay it. If you do not pay it within in the time stipulated by the Court you will sent back to prison and serve your default sentence in full, and still be required to pay your Confiscation Order upon your release. I’m delighted that the Court has sent Sheikh back to prison as it needs to be made abundantly clear to people like him, that they cannot live off hard-working tax payers and honest businesses.”  

Every year, Bedfordshire Police confiscates money and assets from criminals to the tune of over £1million – the proceeds of tax evasion, benefit fraud, drug dealing or other criminal activity. Amounts can be as little of £500 in cash found in a suspect’s car, or six-figure property portfolios    located on the other side of the world.  

Some of this money comes back to the local police and is used to fund more crime-fighting and crime prevention activities.

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