They claimed the 81-year-old had landed a series of successes in the Pakistani lottery.
A British Asian son received a jail sentence of 22 months for money laundering offences. It comes after suspicions arose when his dad bought a house worth approximately £412,000.
The trial took place at Birmingham Crown Court on 3rd November 2017.
Both 44-year-old Kashaf Ali Khan and his father, 81-year-old Malik Abdullah Farooq masterminded a scheme to launder money. They used Pakistani black-market prize bond dealers.
As they gained a huge amount of criminal money, Farooq bought the highly-valued property. However, police arrested him and his 44-year-old son in September and October 2014.
When asked about the source of the money, they claimed the 81-year-old had landed a series of successes in the Pakistani lottery. The pair attempted to suggest that Farooq had won with 123 prize-winning lottery tickets for the Pakistan Prize Bond Draw between July 2012 to February 2013.
However, the National Crime Agency (NCA) investigated these claims. They sought the help of an expert statistician who slammed their excuse. The expert added that this success was as likely as the 81-year-old winning the National Lottery 40 consecutive weeks.
As a result, the NCA charged them, leading to a trial. Since then, Khan has pleaded guilty to two counts of money laundering by using criminal money. One charge links with the £412,000 property.
The other relates to a confiscation order of £175,000 in 2012. Back in 2010, Khan received an earlier conviction of money laundering. As part of his sentence, the judge ordered him to pay the £175,000 fine.
In 12 months, he paid it off in cash. However, HMRC had no records of the 44-year-old working or even having an income. During investigations, he admitted to the NCA that he used criminal money to pay off the order.
The father and son carried out the scheme by using black-market bond dealers in Pakistan. Through this, they attempted to fool any investigators that they had won prize money.
Phil Houghton, NCA senior Investigating Officer said of the case:
“[Khan] thought that he had the perfect explanation if questioned about how he funded the house purchase. He and his father possessed documentation to support their story of being genuine winners of the Pakistan prize bond scheme.”
“Khan didn’t account for NCA investigators discovering the scheme’s black market and proving he had used it to clean criminal money.”
This black-market works through selling on winning tickets to those who want to clean criminal money. Prize organisers would then issue out the payment in their name.
In Pakistan, those who own winning lottery tickets have to wait weeks for their prize. Those who feel impatient will sell off their ticket for a lower sum so they can immediately receive money.
While Khan will spend 22 months in jail, the two charges against Farooq have been left on file.