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Preston counterfeit boss found guilty in one of UK's biggest tax fraud case
The mastermind of a fake designer clothing scam has been convicted of one of the UK’s largest ever carousel tax frauds.
Sock manufacturer Arif Patel, 55, of Preston, and his criminal gang tried to steal £97 million through VAT repayment claims on false exports of textiles and mobile phones.
They also imported and sold counterfeit clothes that would have been worth at least £50 million, had they been genuine. The proceeds were used to buy property across Preston and London through offshore bank accounts.
Following a joint investigation between HM Revenue and Customs (HMRC) and Lancashire Police, Patel was yesterday (April 11) found guilty of false accounting, conspiracy to cheat the public revenue, the onward sale of counterfeit clothing and money laundering.
Co-accused Mohamed Jaffar Ali, 58, of Dubai, was also found guilty of conspiracy to cheat the revenue and money laundering yesterday.
The convictions follow a 14-week trial at Chester Crown Court.
Reporting restrictions have now been lifted and it can be revealed for the first time that 24 members of the criminal empire were convicted in five trials between 2011 and 2014 and jailed for a total of more than 116 years.
HMRC has also restrained more than £78 million of the gang’s UK assets and proceedings are now underway to recover these funds for the public purse.
Richard Las, Director, Fraud Investigation Service, HMRC, said: “These guilty verdicts close a significant chapter in one of the biggest tax fraud cases ever investigated by HMRC.
“For more than a decade HMRC and our partners have worked tirelessly and together to bring this gang to justice.
“Arif Patel lived a lavish lifestyle at the expense of the law-abiding majority. Tax crime is not victimless and fraudsters like this pair steal the money that funds the NHS and other vital public services we all rely on.
“Our work doesn’t stop here. We have more than £78 million of the gang’s UK assets restrained and have begun the process to recover all those proceeds of crime.”
Sam Mackenzie, Assistant Chief Constable, Lancashire Constabulary, said: “While presenting himself as a genuine and reputable businessman Arif Patel in fact used stolen taxpayers’ cash to line his own pockets and fund a lavish lifestyle.
“This is money that should have been used to fund the vital public services which we all rely on and to which most of us contribute our fair share by working hard and paying tax.
“I welcome these guilty verdicts which are the culmination of a lengthy and complex investigation which has involved many years of hard work and dedication by police officers and staff and partners from HMRC who have worked together in a truly joint operation.”
Patel was convicted in his absence, having remained in Dubai throughout the trial.
The CPS will now pursue confiscation proceedings against the defendants, to prevent them enjoying the benefits of their criminal enterprise.
Patel’s Preston-based company, Faisaltex Ltd, was the heart of his criminal empire. From here, he ran the counterfeit clothing import operation and false export business.
As well as being a major player in the overall criminal conspiracy, Jaffar Ali also laundered the proceeds through bank accounts he set up in Dubai and offshore.
Patel and the Faisaltex group of companies had turned to bulk imports of counterfeit clothing in 2004. During the next three years dozens of containers with fake designer clothing inside were stopped at ports across the UK, including Liverpool, Southampton and Felixstowe.
Onward distribution to UK traders was confirmed when a delivery to a Glasgow wholesaler was intercepted by police and revealed to be poorly made designer rip-offs.
He also used the business, from 2004, to make fraudulent VAT repayment claims on supposed high-value goods and yarns. In total, the gang fraudulently claimed £97 million on false exports of textiles and mobile phones, but HMRC stopped £64 million of the claims.
The scam is known as a carousel fraud, where goods are purportedly sold to genuine buyers, but in fact the whole process is controlled by the criminal, who instigates a paper trail of alleged sales and exports in order to reclaim VAT.
Patel frequently travelled to Dubai to meet Jaffar Ali and also made trips to China and Turkey to set up deals with manufacturers of counterfeit clothing. The profits were laundered by Jaffar Ali through freezone companies and bank accounts held in the UAE.
Money was sent to British Virgin Island-registered companies, which Patel then used to buy property in his hometown of Preston, including commercial properties on Fishergate, the city’s main shopping street.
Patel’s criminal enterprise relied on dozens of lieutenants around the UK, including professional enablers. This involved two chartered accountants from a Preston-based practice: Anil Hindocha, 69, from Preston, and Yogesh Patel, 66, from Aylesbury.
Hindocha was jailed for 12 years and 10 months in 2014 after being found guilty of false accounting, conspiracy to cheat the public Revenue and money laundering.
Yogesh Patel was jailed for five years and seven months after being found guilty of conspiracy to cheat the public revenue and money laundering.
Patel travelled to Dubai in July 2011 and failed to return. He was tried in his absence at Chester Crown Court where he was found guilty of all charges yesterday, April 11. He will be sentenced next month.
Jaffar Ali was also found guilty of conspiracy to cheat the public revenue and money laundering. After attending the majority of the trial, he failed to attend court on March 27 and a warrant was issued for his arrest. He will also be sentenced next month.
Arif Patel’s brothers Munaf Umarji Patel and Faisal Patel are on Lancashire Police’s wanted list.
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Fake clothing boss from Lancashire convicted of £150m fraud
The mastermind of a fake designer clothing scam has been convicted of one of the UK’s largest ever carousel tax frauds.
Sock manufacturer Arif Patel, 55, of Preston, and his criminal gang tried to steal £97 million through VAT repayment claims on false exports of textiles and mobile phones.
They also imported and sold counterfeit clothes that would have been worth at least £50 million, had they been genuine. The proceeds were used to buy property across Preston and London through offshore bank accounts.
Following a joint investigation between HM Revenue and Customs (HMRC) and Lancashire Police, Patel was yesterday (April 11) found guilty of false accounting, conspiracy to cheat the public revenue, the onward sale of counterfeit clothing and money laundering.
Co-accused Mohamed Jaffar Ali, 58, of Dubai, was also found guilty of conspiracy to cheat the revenue and money laundering yesterday.
The convictions follow a 14-week trial at Chester Crown Court.
Reporting restrictions have now been lifted and it can be revealed for the first time that 24 members of the criminal empire were convicted in five trials between 2011 and 2014 and jailed for a total of more than 116 years.
HMRC has also restrained more than £78 million of the gang’s UK assets and proceedings are now underway to recover these funds for the public purse.
Richard Las, Director, Fraud Investigation Service, HMRC, said: “These guilty verdicts close a significant chapter in one of the biggest tax fraud cases ever investigated by HMRC.
“For more than a decade HMRC and our partners have worked tirelessly and together to bring this gang to justice.
“Arif Patel lived a lavish lifestyle at the expense of the law-abiding majority. Tax crime is not victimless and fraudsters like this pair steal the money that funds the NHS and other vital public services we all rely on.
“Our work doesn’t stop here. We have more than £78 million of the gang’s UK assets restrained and have begun the process to recover all those proceeds of crime.”
Sam Mackenzie, Assistant Chief Constable, Lancashire Constabulary, said: “While presenting himself as a genuine and reputable businessman Arif Patel in fact used stolen taxpayers’ cash to line his own pockets and fund a lavish lifestyle.
“This is money that should have been used to fund the vital public services which we all rely on and to which most of us contribute our fair share by working hard and paying tax.
“I welcome these guilty verdicts which are the culmination of a lengthy and complex investigation which has involved many years of hard work and dedication by police officers and staff and partners from HMRC who have worked together in a truly joint operation.”
Patel was convicted in his absence, having remained in Dubai throughout the trial.
The CPS will now pursue confiscation proceedings against the defendants, to prevent them enjoying the benefits of their criminal enterprise.
Patel’s Preston-based company, Faisaltex Ltd, was the heart of his criminal empire. From here, he ran the counterfeit clothing import operation and false export business.
As well as being a major player in the overall criminal conspiracy, Jaffar Ali also laundered the proceeds through bank accounts he set up in Dubai and offshore.
Patel and the Faisaltex group of companies had turned to bulk imports of counterfeit clothing in 2004. During the next three years dozens of containers with fake designer clothing inside were stopped at ports across the UK, including Liverpool, Southampton and Felixstowe.
Onward distribution to UK traders was confirmed when a delivery to a Glasgow wholesaler was intercepted by police and revealed to be poorly made designer rip-offs.
He also used the business, from 2004, to make fraudulent VAT repayment claims on supposed high-value goods and yarns. In total, the gang fraudulently claimed £97 million on false exports of textiles and mobile phones, but HMRC stopped £64 million of the claims.
The scam is known as a carousel fraud, where goods are purportedly sold to genuine buyers, but in fact the whole process is controlled by the criminal, who instigates a paper trail of alleged sales and exports in order to reclaim VAT.
Patel frequently travelled to Dubai to meet Jaffar Ali and also made trips to China and Turkey to set up deals with manufacturers of counterfeit clothing. The profits were laundered by Jaffar Ali through freezone companies and bank accounts held in the UAE.
Money was sent to British Virgin Island-registered companies, which Patel then used to buy property in his hometown of Preston, including commercial properties on Fishergate, the city’s main shopping street.
Patel’s criminal enterprise relied on dozens of lieutenants around the UK, including professional enablers. This involved two chartered accountants from a Preston-based practice: Anil Hindocha, 69, from Preston, and Yogesh Patel, 66, from Aylesbury.
Hindocha was jailed for 12 years and 10 months in 2014 after being found guilty of false accounting, conspiracy to cheat the public Revenue and money laundering.
Yogesh Patel was jailed for five years and seven months after being found guilty of conspiracy to cheat the public revenue and money laundering.
Patel travelled to Dubai in July 2011 and failed to return. He was tried in his absence at Chester Crown Court where he was found guilty of all charges yesterday, April 11. He will be sentenced next month.
Jaffar Ali was also found guilty of conspiracy to cheat the public revenue and money laundering. After attending the majority of the trial, he failed to attend court on March 27 and a warrant was issued for his arrest. He will also be sentenced next month.
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Chapter Ten: MEN’S APPAREL
Key Concepts:
▪️The history of the menswear industry.
▪️ Categories of men’s apparel,
▪️Roles of brand names and designer names in the marketing of menswear.
▪️Advertising and promotional activities in the marketing of men’s apparel.
HISTORY OF MEN’S APPAREL INDUSTRY
We’ve said it time and time again, menswear is ruled by history and tradition. Every person in menswear (designer, stylist, editor, etc) has taken inspiration from the past at one time or another. And no era has been overlooked.
Therefore, as we continue to explore the foundations of personal style via our Menswear 101 articles, I thought we’d take a quick look back at the last hundred-or-so years in men’s fashion. Perhaps this will provide a little insight or context as to how menswear shifts, and more importantly, how we can make informed decisions when it comes to buying clothing and developing personal style.
LATE 1800S: LAST OF THE VICTORIANS
As the nineteenth century came to an end men were slowly shaking-off the Victorian influence which still had them wearing tophats, frock coats, and pocket watches while carrying walking sticks. This may seem like an elaborate and restrictive way to dress, but it was a big step in the right direction considering the Georgian period that proceeded it had men wearing feathers, panty hose, and high heels. And you thought you were a “dandy”.
1900S: TALL, LONG & LEAN
As we moved into the 1900s men’s clothing was predominantly utilitarian and rather unimaginative. The long, lean, and athletic silhouette of the late 1890s persisted, and tall, stiff collars characterize the period. Three-piece suits consisting of a sack coat with matching waistcoat and trousers were worn, as were matching coat and waistcoat with contrasting trousers, or matching coat and trousers with contrasting waistcoat. Sounds familiar, right? Trousers were shorter than before, often had “turn-ups” or “cuffs“, and were creased front and back using the newly-invented trouser press.
1920S – BROADENING HORIZONS
After the war (which introduced numerous classic menswear designs which are still used today, like trench coats and cargos), business started to pick-up and Americans had more money. More money allowed them to travel more and broaden their horizons culturally and aesthetically. Many crossed the Atlantic to England and France. Naturally they returned with suitcases full of the latest fashions being worn overseas.
1930S: THE HEIGHT OF ELEGANCE
The begining of the 1930s saw the great depression. Although the average man couldn’t afford to partake in the world of fashion, many often enjoyed observing the style choices of those who could. Hollywood films on the Silver Screen became a beacon for hope for the working class man living in this era. Men and women alike looked with admiration and aspiration to elegantly dressed stars like Fred Astaire, Clark Gabel, Cary Grant, and Gary Cooper.
1940S: THE BIRTH OF READY-TO-WEAR
With the end of World War II, American men strayed from the high standards and basic principles of fine dress established in the thirties. Part of this was changes in the workforce and the loss of formality in everyday life. With lower demand, the price of custom tailoring rose, which allowed for the mass production of menswear to takeover as the everyday norm. This period saw the introduction of mass produced ready-to-wear clothing in America, by some brands that are still selling us clothing today.
1950S: THE AGE OF CONFORMITY
The 1950s was the Age of Conformity. Young men returning from the military were anxious to fit right in with the establishment. Fitting in and “looking the part” meant taking on the Ivy League look, which was dominating menswear. Individuality in style of clothing was an afterthought. The goal was to look “part of the club”, in a boxy sack suit, oxford shirt, rep tie, and loafers. This was another big boost for mass Ready-to-Wear manufacturers who gladly sold the same ill-fitting tweed jackets to any young man trying to look smart and employable.
Little happened in men’s fashion until the 1960’s when suddenly menswear blossomed, cultivated by fads (British rock groups, Mod look, Edward-ian look) that changed the shape. These Revolu-tionary Fashions included social revolution such as long hair, beards, jeans, tie-dye, adop-tion of African clothing, dashiki, collarless woven shirts. Revolutionary Fabrics evolved with tech-nology influenced synthetics and knits boomed in the 70s (double-knit suit, circular knit shirt, in-terlock underwear, knit ties, jersey knit socks). Permanent-press finish of cotton introduced no iron shirts.
1980S: POWER DRESSING
In the 1980s things got a little more serious, with broad shoulders framing power ties and suspenders. Bold colors and graphic patterns conveyed a new national confidence and businessmen took to power dressing with an emphasis on expensive clothing and gaudy accessories.
1990S: BAGGY BUSINESS CASUAL
This may be perhaps the worst-dressed decade of them all. The fashion in the 1990s was the genesis of a sweeping shift in the western world: the beginning of the adoption of tattoos and body piercings. This brought back the indifferent, anti-conformist approach to fashion, leading to the popularization of the casual chic look; this included T-shirts, distressed jeans, oversized hoodies, and trainers. “Business Casual” also enters the lexicon as corporate offices generally become less formal, ultimately causing the suit to get bigger and uglier than ever.
2000S: HIP-HOP & EUROPEAN TAILORING
Menswear in the new millennium was influenced primarily by hip-hop culture for the youth, and European “slim fit” tailoring for the older gents. The suit finally started to slim down, as the “European cut” became highly sought after in America, to the point where eventually it became hard to find stores that didn’t carry “slim fit”. The internet also made it easier for men to learn about menswear and share their opinions with fellow style enthusiasts. We saw the birth of the first menswear blogs, with this one starting in 2009.
2010S: THE EVOLUTION OF STYLE ONLINE
The 2010s have brought us the evolution of the “fashion star”. Fashion bloggers have become mainstream. On the one hand, suddenly fashion is in the hands of the people, producing a larger variety of styles, reviews, and opinions than ever before. On the other hand, those being watched are naturally encouraged to try harder and harder to stand out from the crowd. “Peacocking” became a menswear term in the early part of the decade for “trying too hard”, although men have generally become more confortable with subtle, tasteful styling.
ORGANIZATION AND OPERATION OF THE INDUSTRY
The Federal Government uses these 5 classifications (although not of-ficial classification, sportswear has become a vital portion of the busi-ness and should be considered a menswear category):
Tailored clothing – Suits, overcoats, topcoats, sports coat, formal wear, and trousers.
Furnishings – Dress shirts, neckwear, sweaters, headwear, under-wear, socks, etc.
Outerwear – Raincoats, coats, jackets, and active sportswear.
Work clothing – work shirts, work pants, overalls, and related items.
Other – Miscellaneous items and uniforms.
ORGANIZATION AND OPERATION OF THE INDUSTRY:
Size and Location of Manufacturers Key players include Levi Strauss, VF Corp, PVH in mid-Atlantic. Industry centers are gradu-ally moving with expansion to south and west. Guess and LA Gear are companies expanding in LA with Nautica and Patagonia in San Francisco and Eddie Bauer in Seattle.
Dual Distribution Apparel is made available through both wholesale and retail channels; that is, the manufacturer sells it in its own retail stores as well as retail stores owned by others.
Designing a Line For generations designer names were known only within the trade and were seldom considered important by consumers. Traditionally, they were the English styling led fash-ions (Savile Row). But, process to produce was too slow. The first signs of male rebellion in late 1940s was with the Ivy League (natural shoulder) suit and in the 1960s with the “Peacock revolu-tion”. Men were taking pride in their looks with long hair, bold suits, bright shirts, leisure suits, and shiny boots.
THE IMPORTANCE OF NAME DESIGNERS
Designer names in menswear mushroomed in the 1960s. Most were Women’s Wear designers from Europe. Oleg Cassini, John Weitz, Bill Blass, and Ralph Lauren were 1st Americans. To-day, the “name game” is big business in all seg-ments of the industry.
Italian designers: Armani, Brioni, Ver-sace, D+G, Kiton, Zegna.
Belgian: Raf Simons Leading
US: Ralph, Calvin, Tommy
Menswear has never been more interesting than it is right now. If you’ve been paying attention, then you already know that we’re in a moment where traditional tailoring, streetwear, and avant-garde fashion coexist and even complement one another on the street, on the runways, and in the press. And that’s significant, considering the glacial pace at which men’s fashion has historically moved—going long periods of time without experiencing much change beyond the widening and narrowing of lapels, shirt collars, or pant legs. Emerging designers are having major breakouts (Craig Green), established designers are finding new ways to break through (Raf Simons), and up-and-coming brands are breaking new ground (Our Legacy). With the Fall 2015 season upon us—shows start in London on Friday—here’s our guide to the men’s fashion names you need to know, a list that reflects the fluid, dynamic state of menswear in 2015.
ORGANIZATION AND OPERATION OF THE INDUSTRY
MAIN MARKET SEGMENTS IN MENSWEAR
Tailored Clothing : structured suits, overcoats, topcoats, sports coats, formal wear + separate slacks that require hand-tailoring; de-cline in demand; top in price and quality
Designer Suits : suits sized on a “seven-inch drop”, drop referring to the difference in inches between Chest measurement of jacket and Waist measurement of pants; differences also between natural shoulder or European styling
Production : a long, complicated process; styles selected, fabric ordered 9 months in advance, manufacturers do not cut until buyers or-ders confirmed, suit sizing
Suit Separates : sports jackets and trousers; machine-made and significantly lower in price; some believe men who buy separates are more “fashion-aware” than those that need the reassurance of preas-sembled look.
Sportswear or casual wear: runs the gamut from unconstructed jackets, knit/woven sports shirts, slacks, leisure shorts to coordinated tops/ bottoms; fastest growing segment of the men-swear industry since 1970s; fulfills men’s interest in having more variety in their wardrobes; sports-wear production differs from tailored wear where sportswear manufacturers are interested in short runs (the production of a limited number of units of a particular item, fewer than would normally be considered and average number to produce) and
a quick response to customer demand; narrow size range; contractors are handle production work most successfully.
MARKETING AND MERCHANDISING
Like Women’s Wear, Menswear producers back their lines with adver-tising and publicity. Menswear highly relies on agencies, freelancers, and less often on in-house departments for advertising and publicity.
Major publicity efforts are still undertaken by trade associationswhich sponsor market weeks, trade shows, and other promotions de-signed to publicize individual producers and the industry as a whole.
Link:
https://www.wsj.com/articles/SB10001424052970204517204577042132703157156
https://www.youtube.com/watch?v=oH0gPHZkvMQ
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A sock just seems a sock, right? No. Making a sock is an investment; it is not simply about making a custom logo or design. You have got to think about an intricate combination of comfort, print design, seasonal use, fibers, and sizes. Your hip logo could be unrecognizable once stretched over a size of 12 feet unless you plan early on.
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Non slip yoga socks have increased in popularity in recent years. Both experienced yogis and newcomers have decided for various reasons that they’d rather practice in socks instead of going barefoot. Socks provide an added layer of comfort and grip so you’re not slipping on your yoga mat during practice.
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Thus, retailers who wish to establish their own private label store for functional socks can contact one of the popular private label sock manufacturers in the industry.
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There's no mystery that yoga has exploded in popularity around the world in recent years, particularly in the West. Ironically, this market expansion contributed to a counter-explosion in yoga clothes and accessories. Such products include yoga towels, yoga blocks, yoga mats, yoga pants, and yoga socks... https://sockmanufacturers.wordpress.com/2020/08/26/know-your-yoga-socks-before-making-your-purchase/
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