"Umerji has defrauded the taxpayer of over £37 million"
Adam Umerji has been ordered to pay £37,667,622 following his conviction in connection with a high-value VAT fraud involving mobile phone trading.
He faces up to an additional 10 years in prison if he fails to pay the confiscation order.
Umerji was convicted in his absence following a retrial at Manchester Crown Court on October 29, 2018.
He was convicted of conspiracy to cheat the public revenue and conspiracy to transfer criminal property.
He was sentenced to 12 years’ imprisonment on the first count and five years on the second, to run concurrently.
The earlier convictions against Umerji had been quashed in 2014, with a retrial ordered. The Court of Appeal subsequently considered an application by Umerji concerning his 2018 conviction.
Its judgment, handed down on April 23, 2021, confirmed that Umerji had not attended the retrial and had chosen not to be represented.
The judgment also recorded efforts to extradite Umerji from the United Arab Emirates between 2013 and 2016. The extradition request was refused by the Emirati authorities in July 2016.
The case concerned a high-value VAT fraud involving the trading of mobile phones.
The prosecution case was that Umerji was a leading participant in a conspiracy involving a network of companies and numerous transactions.
The alleged scheme involved buying goods within the European Union and selling them at VAT-inclusive prices without reimbursing the authorities for the VAT owed.
It was alleged that the conspiracy resulted in the fraudulent claiming of around £30 million in VAT repayments and cost the UK taxpayer £64 million.
The conspiracy ran for nine months until June 2006 and involved numerous transactions designed to conceal the VAT theft.
Following Umerji’s 2018 conviction and sentence, proceedings were brought under the Proceeds of Crime Act.
The confiscation proceedings were heard in Umerji’s absence. The court accepted that reasonable steps had been taken to make him aware of the hearing and that it was appropriate and fair to proceed without him.
A confiscation order of £37,667,622 was subsequently made. The order also provided for a further period of imprisonment of up to 10 years if the amount was not paid.
Manjula Nayee, Specialist Prosecutor in the CPS Proceeds of Crime Division, said:
“Despite Umerji being absent at the hearing, it is important to deprive him of money gained from illegal practices.
“Umerji has defrauded the taxpayer of over £37 million – money that could be spent on the doctors, nurses, police officers and other vital public services.
“This is one of our largest ever confiscation orders and demonstrates where we can take money from people who have profited from crime, we will not hesitate to do so.
“In 2019/20, the CPS recovered over £100 million, stopping hundreds of criminals benefiting from their ill-gotten gains.”
In April 2021, the Court of Appeal considered Umerji’s application concerning his conviction.
The judgment recorded the history of the case, including the original trial, the quashing of the original convictions in 2014 and the subsequent retrial in 2018.
The Court of Appeal did not overturn the 2018 conviction.
The confiscation proceedings were dealt with under the Proceeds of Crime Act, with the Crown Prosecution Service seeking to recover money connected to the criminal conduct.
