Kuldip Singh Sander of Perry Barr, Birmingham, a prolific horse racing gambler, played a pivotal role in these offences and had responsibility for overseeing the money laundering part of the fraud.

Adrian Farley, Assistant Director for HMRC said:
"This was not some kind of victimless crime, but organised fraud on a massive scale perpetrated by criminals all bent on making fast and easy profits at the expense of the British taxpayer. This was theft of revenue needed to fund our country´s public services but instead it fuelled their elaborate lifestyles. `Missing trader´ fraud is not merely a paper fraud but often features links to other forms of criminal activity such as drug smuggling and violent crime."

He added:
"We have worked closely with law enforcement agencies in Belgium, the Netherlands, and Ireland on this case and will not stop in our fight to win the war on crime. We will take every action possible to identify and eradicate corruption to maintain the integrity and reputation of our organisation."

The court heard the organised crime group fraudulently evaded VAT of around £60 million within the computer chip and mobile phone industry and laundered the proceeds of the crime. This provided a luxury lifestyle for those involved including ringside seats for the World Title fight between Mike Tyson and Lennox Lewis in 2002 in America. Investigations by HMRC involved breaking the audit trail of businesses based throughout the UK, Ireland, the Netherlands, Belgium and Germany.

In July 2002, in one of the largest operations ever undertaken, some 200 HMRC officers targeted private and business addresses, following a thorough and comprehensive investigation. They arrested and subsequently charged 17 people with a number of offences including Conspiracy to Cheat the Public Revenue, Corruption of a Customs Officer and Money Laundering Offences. The sophisticated scam involved the setting up of numerous false VAT registered businesses, bogus bank accounts opened by a bank official from Barclays Bank and the corruption of a Customs Officer.

On sentencing Sander, The Recorder of Birmingham, His Honour Judge Davis QC, said:
"You have been convicted for offences of laundering substantial proceeds of crime in a sophisticated fraud on the revenue." He commended the role of HMRC Criminal Investigation officers.

Five trials have taken place four at Northampton and one at Birmingham Crown Courts since May 2005. All have been subject to stringent reporting restrictions - all of which have now been lifted.