Tax Credit Fraud: Khalid Farid A Self-Employed Property Investor Has Been Jailed

Property investor and chef jailed for tax credit fraud

A self-employed property investor and caterer from Bermondsey, who stole over £70,000 in a tax credit fraud, has been jailed.

Khalid Farid, 59, admitted fraudulently claiming tax credits, despite pocketing more than £509,000 from property sales, when he was investigated by HM Revenue and Customs (HMRC).

Farid’s crime was uncovered by an HMRC property taskforce, set up to identify those who seek to avoid paying tax from property transactions. Taskforces bring together various HMRC compliance and enforcement teams for intensive bursts of activity targeting specific sectors and locations where strong evidence is held to indicate a high risk of tax evasion and fraud.

Investigators found Farid had eight London properties, purchased in his wife’s name, which he’d sold over the previous nine years. Although making substantial profits, at the same time Farid was claiming tax credits for himself and his family. He lied and claimed the only home he had was his rented flat, which, until recently, he used as a base to cook and deliver Indian takeaways.

David Margree, Assistant Director, Fraud Investigation Service, HMRC, said:

More Read

Healthcare Fraud: Nicholas and Gregory Melehov Have Agreed To Pay to Resolve Allegations Concerning Inflated Medicare Claims for Ambulance Transports

Healthcare Fraud: Freedom Health Inc., Agreed to Pay Engaging in Illegal Schemes to Maximize Their Payment From The Government in Connection With Their Medicare Advantage Plans

FBI, and the U.S. Attorney’s Office for the Eastern District of New York Neutralized the FSB’s Premier Cyberespionage Malware Implant

Financial Fraud: Nita Rae Nirschl Charged In 37 Counts of Money Laundering From Credit Union

Financial Fraud: Evans Appiah Sentenced from an Internet Romance Scheme – Mail and Wire Fraud, Identity Theft

“Farid deliberately abused a system designed to provide financial help to the most vulnerable people in our society. Honest taxpayers and those in need of benefits often don’t have the opportunity to own one property, but Farid profited from the sale of eight. He knew what he was doing was wrong but had no intention of playing by the rules, thinking he could hide his crime by using his wife’s name as a smokescreen. But he was wrong and now is paying the price for his dishonesty with a jail sentence.

“If you know of anyone who is committing tax fraud please contact our 24 hour Hotline on 0800 59 5000 and help us stamp it out.”

In summing up the Recorder, Mr V Robinson QC, said:

“In spite of Mr Farid’s early guilty plea, he had made a serious financial gain and sending him to prison may send a clear message to others considering benefit fraud in the future.”

The property sales will now be subject to a Capital Gains Assessment and confiscation proceedings to recover the proceeds of his crime will follow.

Notes for Editors

1. Khalid Farid (DOB 2/10/57) of Weston Street, London, pleaded guilty to being knowingly concerned in fraudulent claims of tax credits contrary to Section 35 of the Tax Credits Act 2002 on 6 June at Inner London Court. He was sentenced to 20 months imprisonment at the same court on Tuesday, 30 August 2016.

2. The total amount of the tax credit fraud is £70,515.

3. HMRC taskforces target specific high-risk sectors where there is a risk that some are not paying the tax they owe. Since taskforces began in May 2011, more than 140 taskforces have been launched, bringing in more than £540 million.

4. Taskforces bring together various HMRC compliance and enforcement teams for intensive bursts of activity targeted at specific sectors and locations where there is evidence of high risk of tax evasion and fraud. The teams visit traders to examine their records and carry out other investigations.

5. Follow HMRC Press Office on Twitter @HMRCpressoffice

Original PressReleases …