Criminal gang in multi-million alcohol scam jailed for more than 34 years

The mastermind of the scam, Shafqat Majeed, formerly of Hove, was sentenced to 10 years in prison for running the multi-million VAT and excise fraud which funded a life of luxury.

Majeed orchestrated a criminal operation where huge quantities of alcohol were smuggled into the UK and sold through a wholesale company under his control called South Coast Wholesale.

The company operated from two premises – Palace Drinks, in Shoreham-by-Sea, West Sussex, and Kaka Cash and Carry, in Manchester.

An investigation by HM Revenue and Customs (HMRC) revealed the gang used a sophisticated network of fictitious businesses and created a trail of false paperwork on an industrial scale to cover up the conspiracy.

Majeed and his associates set up and used a fake network of businesses and supply chains, supported by reams of paperwork detailing fictitious transactions, to cheat the VAT system and evade paying excise duty.

The artificially created supply chain made it appear that the goods had been bought and sold through a series of companies before being sold onto the UK market by South Coast Wholesale and resulted in the theft of more than £4.8m in VAT.

The network of businesses was also used to cover up the supply of smuggled alcohol goods and evade paying £11.9m in excise duty.

Majeed and ten other gang members were sentenced following two separate trials and sentencing hearings at Southwark Crown Court in London.

Zoe Ellerbeck, operational lead at the HMRC’s Fraud Investigation Service, said: “This was a highly sophisticated fraud which deprived £16m from our public services.

“Majeed and his associates committed serious crimes and now they have to face the life-changing consequences.”