A former director, Tariq Sarwar, has been sentenced to four years in prison for his role in a sophisticated £3 million insolvency fraud and money laundering scheme. Sarwar, 59, who was already disqualified from acting as a company director, fraudulently diverted funds from the sale of a commercial property in Salford, depriving creditors, including HM Revenue and Customs (HMRC), of significant sums. His accomplice, Christopher Francis, 40, received a two-year and one-month suspended prison sentence for laundering the illicit proceeds.
The elaborate scheme unfolded when Sarwar, aware his company was facing financial difficulties and likely to be wound up, sold its primary asset – a commercial property – for over £5 million. From these proceeds, more than £3 million was fraudulently transferred by Sarwar. These funds were then channelled to a food and drinks company controlled by Francis, who subsequently laundered the money through a complex network of accounts and other businesses, ultimately returning it to Sarwar.
While creditors were left owed over £500,000, Sarwar and his family reportedly enjoyed a lavish existence in the Cheshire countryside. This included residing in a six-bedroom home adorned with designer goods from brands such as Versace and Louis Vuitton. Reports also highlighted his son's appearance on a reality television programme in 2019, where he spoke of never having used a bus and being chauffeured in a Rolls-Royce, illustrating the extent of the family's opulent lifestyle.
Sarwar, of Gore Lane, Alderley Edge, admitted charges of fraudulently removing assets in anticipation of winding-up and acting as a company director while disqualified. He was sentenced at Manchester Crown Court on Friday, 12th June, and received a 10-year ban from acting as a company director in addition to his prison term. Francis, of Letchworth Road, Luton, pleaded guilty to one count of money laundering under the Proceeds of Crime Act 2002 and was also ordered to complete 250 hours of unpaid work.
This is not Sarwar's first brush with such offences; he was previously disqualified as a company director for 11 years in November 2013. At that time, his company owed at least £1.6 million to creditors, yet he arranged for more than a quarter of a million pounds from an insurance claim to be paid for his personal benefit, with the company entering administration less than eight weeks later. His current disqualification legally prohibited him from forming, managing, or promoting a company without court permission, which he did not possess, yet he acted as director of A Property Management Limited.
The Insolvency Service has confirmed that investigations are now underway to confiscate the fraudulently obtained funds. David Snasdell, Chief Investigator at the Insolvency Service, stated that Sarwar and Francis went to considerable lengths to conceal their criminal actions, moving millions through a web of companies. Daniel Hart, Senior Criminal Lawyer at the Insolvency Service, emphasised the organisation's commitment to pursuing those who hide criminality behind corporate structures and abuse the insolvency regime.
Source: Insolvency Service