Luton man ordered to repay £67,131 after mortgage fraud
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Mohammed Wasi Sheikh, 47, of Northview Road, Luton was ordered to re-pay the money from his fraudulent activities by Luton Crown Court on Friday.
In February 2010, Sheikh was sentenced to 15 months for eight fraud offences relating to housing benefit claims, income support claims and mortgage fraud.
He had been claiming benefits from Luton Borough Council and the Department of Works and Pensions, at the same time as presenting false details to a mortgage company in order to borrow money for a house purchase.
The criminal benefit he made from his fraudulent house purchases was £265,100, the court made a Confiscation Order for £67,131, his current assets.
From these monies SHEIKH was ordered to pay compensation to the Department of Works and Pensions of £24,750 along with £2,112 to Luton Borough Council. He must repay the £67,131 within six months or face a further jail term of 21 months - at the end of which he will still owe the money.
Sheikh’s offences came to light as part of a larger fraud when Luton Borough Council and the DWP became suspicious about his benefits claims.
Bedfordshire Police Economic Crime Unit became involved and started to look into his case. It also become apparent that his brother Mohammed Zaki Sheikh, aged 49, had committed mortgage fraud and that both mortgages had been brokered by Gillies St Juste, of London, who had been responsible for similar frauds totalling £1.5m.
All were jailed by Luton Crown Court last year.
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Readers' comments (2)
Anonymous | 13 Apr 2011 4:11 pm
I've often wondered whether prison is the right place for fraudsters, surely there are ways to make it vitually impossible for them to commit same offences again and then to work off the money to ber repaid?
He has to repay £67k and goes to prison for 15 -36 months? With prison costing £30k+ pa surely ther country's net position here hasn't improved at all.
Keep prison for those that are a real danger to society
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Anonymous | 14 Apr 2011 9:52 am
I guess the problem is that most fraudsters "lose" the money they gain by commiting the fraud, so it is very difficult to recover.
No doubt they would find a way of not repaying the cash from earned income, by simply not working, again relying on the state to keep them.
Not an easy one, hence the need for a custodial sentance, where appropriate.
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