Criminal gang jailed for £8m mortgage fraud

1 March 2010 | By Natalie Thomas

Judge Bellows sentenced Khawar Khan to five years in prison, Imran Mirza and Nadeem Mirza to four years each in prison and sentenced Farhan Khan to two years.

All had pleaded guilty to numerous fraud related offences in December 2009.

The investigation was launched in March 2009 after Abbey and HBOS asked the City of London Police to look into the activities of Montague Mason Solicitors, based in Essex.

Working in collaboration with the two banks, investigators uncovered an extensive criminal network that led them to executing search warrants at addresses across the UK in June 2009.

The court had previously heard how the criminal gang identified suitable properties across the South-East to use for false mortgage applications without ever approaching the owners.

At the same time Essex-based Montague Mason Solicitors submitted false paperwork in connection with 33 fraudulent mortgage applications.

The fraudulent mortgages were finalised when false paperwork was completed in the name of the solicitors, including the Certificates of Title requesting the banks release the funds.

Once the deals were signed off and the funds transferred the culprits dispersed the stolen money from the solicitor’s accounts into a network of many hundreds of false bank accounts, controlled by the gang.

These details led the City of London Police to the defendants and the home of Imran Mirza, 31 and Nadeem Mirza, 26, in Ilford, Essex.

Searches of their house and properties in Nottingham and Barking led to the four men being arrested and the seizure of almost £100,000 in cash, gold ingots worth £43,000 and false documentation.

Detective Inspector Perry Stokes from the City of London Police, who led the investigation, says: “This was a well planned and executed fraud which resulted in huge losses to the bank.

“The sentences passed today send a clear message to organised criminal gangs who think that fraud is the business for them.

“If you are committing fraud, you had better be prepared to go to prison for a long time.”

“The actions of fraudsters like those convicted today is hurting the whole system and affects all of us. The case also highlights how organised criminal gangs are targeting mortgage fraud, viewing it as a means to make easy money.”

Detective Chief Superintendent Steve Head

When officers attempted to gain access to his house, Imran Mirza threw a bag of credit cards out of a bedroom window.

He was arrested along with his brother Nadeem, and £67,000 was found in the house.

During the search Farhan Khan arrived and, when found in possession of false credit cards was arrested.

A search of his house found false ID document directly linked to the mortgage fraud.

A separate search of an office in Nottingham led to the seizure of gold ingots and business records, including spreadsheets detailing the hundreds of fraudulently opened bank accounts.

Khawar Khan, the owner of the office and highlighted by City of London police as a key player in this fraud, was arrested at a house in Barking.

False credit cards, chequebooks, UK and Pakistani passports and driving licenses were also taken from the house.

Detective Chief Superintendent Steve Head, who is head of the economic crime directorate at the City of London Police, says: “The actions of fraudsters like those convicted today is hurting the whole system and affects all of us.

“The case also highlights how organised criminal gangs are targeting mortgage fraud, viewing it as a means to make easy money.   

“Mortgage fraud is causing real damage to the UK economy and as the National Lead Force for fraud we are pro-actively going after the people who orchestrate and commit this crime.”

The City of London Police has taken 18 major investigation in the past two years and says it is working closely with banks to ensure faith in the integrity of mortgage systems.