Millionaire fraudster Arif Patel who fled from Preston to Middle East must repay nearly £100M in criminal cash
‘Cunning, dishonest, and self-important’ convicted Preston fraudster Arif Patel launched an appeal against a court order to pay back more than £90m - despite being on the run. He lost but has yet to serve a day in prison.
One of the UK's most notorious fraudsters has lost his appeal against a court order to pay back over £90m in criminal cash.
Arif Patel, 59, formerly of Sharoe Green Lane, Preston, was a sock manufacturer turned crime boss who tried to steal £97 million of public money through his Preston-based company, Faisaltex Ltd.
Between 2003 and 2008, he and his brothers Munaf and Faisal carried out a series of 'carousel frauds', where they would move exports of clothing and electronics in and out of the country to claim false VAT repayments.
At the same time, they began importing millions of pounds' worth of fake designer clothing into the UK, and spent between £6 million and £7 million on fake charity donations to accomplices in India to avoid paying £193,950.60 in tax.
Mr Patel, as well as being a cunning and dishonest man, was a conceited and self-important individual who did not have a clear grasp of company law, but who wanted to appear important in his own community and wanted to be seen as head of a large group of companies – purely for his own self-gratification and self-importance
Their profits went to a 'property empire' in Preston, London, Warrington, and Morocco. Their profits were laundered in Dubai, where Munaf and Faisal soon fled.
In 2011, as 25 other members of the gang began to be convicted for their roles in the operation, Arif went on the run and fled to join his brothers.
In 2023, despite not attending court, Arif Patel was convicted of two counts of conspiracy to cheat the public revenue, as well as false accounting; conspiracy to launder money; and conspiracy to sell, offer for sale or distribute goods which bear a sign identical to or likely to be mistaken for a registered trademark.
In the years since, he was also found to have paid a Dubai-based reputation management agency to create false advertisements and media releases describing him as a 'philanthropist'.
He was given a 20-year prison sentence, but so far hasn't served a day.
The courts ruled that between 2003 and 2008, Patel would have made £52,793,179.09 through his crimes: £33.4 million from VAT fraud, and more than £19 million from fake designer clothing.
With inflation, that figure ballooned to £90,503,211.96, which a judge ordered him to repay. He also said Patel’s Ferrari 575 Superamerica would be sold at auction.
Despite still being on the run, Patel launched an appeal against the ruling, saying that £90.5 million was an excessive amount which he would not be able to afford.
But on Tuesday (November 3), Patel's case was rejected by London’s Court of Appeal.
In the judgement, the court ruled that Patel had more than enough money and assets to cover the £90.5 million, as "he would not have departed to Dubai [...] had he not been confident he would have sufficient assets there to enable him and his family to continue to enjoy their lavish lifestyle".
Patel was found to have assets of over £74,949,980.40 in the UK and Turkey alone. The court said he appeared "to have been able to live in very comfortable circumstances in the UAE for 15 years without identified means of support".
In the 15 years since he escaped, it was said he would have been able to generate "well in excess" of £30 million from his deeds.
The ruling read: “Mr Patel, as well as being a cunning and dishonest man, was a conceited and self-important individual who did not have a clear grasp of company law, but who wanted to appear important in his own community and wanted to be seen as head of a large group of companies – purely for his own self-gratification and self-importance.”
Work has now begun to sell off Patel's property empire, with the money returned to the public.