Clever little scam

[Paddy]

Leicester textile firms 'involved in money laundering'

Leicester textile firms '''involved in money laundering''' - BBC News

When Mr Nagra received an order from Select Fashion he would, unknown to them, arrange for the garments to be made cheaply by a so-called "cut, make and trim" (CMT) supplier.

He would pay in cash, and the transaction was hidden from his company's official accounts and records.

Recent news investigations have revealed how CMT workers in some factories are paid below the minimum wage for this type of work.

In the meantime, Mr Nagra would pretend the garments were being made by another company. He would place a fake order for the same goods with that company, which appeared to be a garment factory, but in reality was usually just a shell company.

The company would then provide an invoice at an inflated price, far higher than that really paid to the genuine CMT supplier who was making the clothes. Crucially, the fake invoice included a 20% VAT charge on top.

Mr Nagra would pay the inflated amount into the shell company's bank account. Almost immediately, the money would then be withdrawn from the bank account in cash and returned to Mr Nagra, apart from - typically - half the VAT, which would go to pay off accomplices.

[_V_]

These guys should be head hunted by the big money laundering banks, they could be the next CEO there.

[Paralytic]

These guys should be head hunted by the big money laundering banks, they could be the next CEO there.

Not really since they got found out and don't have friends in the government/donated to the relevant party in order to help them out.

[Andy2]

Not really since they got found out and don't have friends in the government/donated to the relevant party in order to help them out.

rookie mistake, should have donated to the party funds and could even become preferred supplier to the govt.

[NickFitz]

The story appears to involve one guy running a VAT fraud, and almost certainly also laundering money from dubious sources as part of that, by setting up and closing numerous companies, as part of which he did business with various other companies, none of which it seems are alleged to have been directly involved in his scam.

So although the headline is strictly accurate, it implies that numerous textile firms in Leicester are involved in money laundering.

This is very unfair. The majority of Leicester textile firms are only involved in exploiting their (largely immigrant) workforces by paying less than minimum wage, requiring excessive hours to be worked, and completely ignoring all health and safety legislation; and maybe a little tax and NI fraud on their own account

[northernladuk]

The story appears to involve one guy running a VAT fraud, and almost certainly also laundering money from dubious sources as part of that, by setting up and closing numerous companies, as part of which he did business with various other companies, none of which it seems are alleged to have been directly involved in his scam.

So although the headline is strictly accurate, it implies that numerous textile firms in Leicester are involved in money laundering.

This is very unfair. The majority of Leicester textile firms are only involved in exploiting their (largely immigrant) workforces by paying less than minimum wage, requiring excessive hours to be worked, and completely ignoring all health and safety legislation; and maybe a little tax and NI fraud on their own account

Although, if he had 14 shell textile companies and that other Malik guy has also been caught doing the same I'd argue that the bold section is, in fact, completely true. The problem is these numerous textile companies were just shells.

[vwdan]

The story appears to involve one guy running a VAT fraud, and almost certainly also laundering money from dubious sources as part of that, by setting up and closing numerous companies, as part of which he did business with various other companies, none of which it seems are alleged to have been directly involved in his scam.

So although the headline is strictly accurate, it implies that numerous textile firms in Leicester are involved in money laundering.

This is very unfair. The majority of Leicester textile firms are only involved in exploiting their (largely immigrant) workforces by paying less than minimum wage, requiring excessive hours to be worked, and completely ignoring all health and safety legislation; and maybe a little tax and NI fraud on their own account

Still, the important thing is that we're going to get those bloody middle class contractors.

[_V_]

Still, the important thing is that we're going to get those bloody middle class contractors.

The privileged few.

[NickFitz]

Although, if he had 14 shell textile companies and that other Malik guy has also been caught doing the same I'd argue that the bold section is, in fact, completely true. The problem is these numerous textile companies were just shells.

There are hundreds, possibly thousands, of textile companies here, so fourteen or even forty isn't "numerous" by Leicester standards

I used to live round the corner from the old Imperial Typewriter factory. There are at least fifty, probably more like a hundred, in that block alone: Google Maps

[vetran]

The story appears to involve one guy running a VAT fraud, and almost certainly also laundering money from dubious sources as part of that, by setting up and closing numerous companies, as part of which he did business with various other companies, none of which it seems are alleged to have been directly involved in his scam.

So although the headline is strictly accurate, it implies that numerous textile firms in Leicester are involved in money laundering.

This is very unfair. The majority of Leicester textile firms are only involved in exploiting their (largely immigrant) workforces by paying less than minimum wage, requiring excessive hours to be worked, and completely ignoring all health and safety legislation; and maybe a little tax and NI fraud on their own account

One of the reasons the Police like catching people for traffic offences is because if the don't obey the rules of the road they may disobey others. Those with no insurance are far more likely to be drug dealers/users and wanted for more serious crimes.

I suspect its like your friendly dug dealer you want some pot they offer you more dangerous options as well because they know you are already willing to break the law. Start with a bit of minimum wage abuse and move up to money laundering its a slippery slope.