An Indian-origin man convicted in a UK mortgage fraud case has paid GBP 265,000 after civil recovery action over a property bought with a fraudulently obtained loan, the Crown Prosecution Service said on Monday.
The CPS said Parmjit Dhami, 34, had earlier secured a mortgage in 2010 using false information about his business and income, backed by fake payslips. The loan was used to buy a property in Ilford, east London, which was later rented out for income.
Tom Oates of the CPS Proceeds of Crime Division said, “This case demonstrates that a criminal conviction and confiscation order may not be the end of our efforts to recover the ill-gotten gains of convicted criminals.” He added, “After securing payment of a 146,150 pounds confiscation order relating to one fraudulent mortgage, our specialist prosecutors pursued separate civil recovery proceedings concerning the property bought with the earlier mortgage. As a result, a further 265,000 pounds has now been recovered.” He said, “We will continue to use the full range of powers available under the Proceeds of Crime Act to ensure that those who benefit from unlawful conduct do not retain those assets.”
According to prosecutors, Dhami later obtained a second fraudulent mortgage in 2014 to buy a family home in Hornchurch, Essex. He used a mortgage broker based in the West Midlands and made a payment to a sham company, Delaware Securities Limited. The money was returned to him after commission was deducted, and false payslips were produced to make it appear that he was employed by the company.
The CPS said, “The broker was investigated by the West Midlands Regional Organised Crime Unit. The broker and four people who had used his services to obtain mortgages fraudulently were prosecuted for conspiracy to commit fraud.” Dhami pleaded guilty to conspiracy to commit fraud at Birmingham Crown Court and was given a suspended sentence of nine months.
The CPS Proceeds of Crime Division later began a civil recovery investigation into the Ilford property bought with the first fraudulent mortgage. It filed a claim in the High Court in London seeking a civil recovery order over an 85 per cent share of the equity in the property, saying the remaining 15 per cent represented the part bought using a legitimate deposit. The case was settled by agreement, and the High Court ordered Dhami and his wife, who claimed an interest in the property, to pay GBP 265,000 within three months. The CPS said the property could have been sold to recover the money if the payment had not been made, but the full amount was paid within the required period.
In sum, the case saw Dhami first convicted over mortgage fraud and later made to pay GBP 265,000 through civil recovery proceedings linked to the Ilford property purchased with the earlier fraudulent loan.
With PTI Inputs
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