Preston mastermind of one of UK's largest tax frauds sentenced

There is a warrant out for Arif Patel's arrest and he is thought to be in Dubai

The mastermind of a fake designer clothing scam who committed one of the UK's biggest carousel tax frauds has been jailed in his absence.

Arif Patel and his gang tried to steal £97m through VAT repayment claims on false exports of textiles and phones.

He also sold counterfeit clothes that would have been worth £50m if genuine.

Patel, 55, who is originally from Preston and now thought to be on the run in Dubai, was sentenced at Chester Crown Court to 20 years.

His Majesty's Revenue and Customs (HMRC) said the fraud was uncovered after a joint investigation involving customs and Lancashire Police over more than 10 years.

It unravelled when dozens of containers full of fake designer clothing were stopped at UK ports including Liverpool, Southampton and Felixstowe.

Onward distribution to UK traders was confirmed when police intercepted a delivery to a Glasgow wholesaler.

HMRC said it has restrained more than £78m of the gang's UK assets

Patel was found guilty after a 14-week trial for a range of offences including false accounting, conspiracy to cheat the public revenue, conspiracy to sell bogus goods and money laundering.

The court heard he used the proceeds of the fraud to buy property across Preston and London through offshore bank accounts, with HMRC saying Patel's Preston-based company, Faisaltex Ltd, was at the heart of his criminal dealings.

He turned to bulk imports of counterfeit clothing in 2004 as well as fraudulent VAT repayment claims on supposed high-value goods and yarns.

The scam saw a range of bogus goods intercepted by customs officials

Co-accused Mohamed Jaffar Ali, 58, of Dubai, was jailed for 14 years in his absence having been found guilty of three counts of conspiracy to commit fraud by failing to disclose information under Fraud Act 2006.

Ali also laundered the proceeds through bank accounts he set up in Dubai and offshore, HMRC said.

Like Patel, he is also wanted by police.

Following sentencing, Andrew Fox, senior prosecutor for the Crown Prosecution Service (CPS) said: "The sentencings of Arif Patel and Mohamed Jaffar Ali successfully conclude this part of an immense investigative and prosecution case against an organised criminal group, involved in counterfeit clothing, fraudulent VAT claims and money laundering.

"The cost to the public purse was tens of millions, money that could have been used for essential public services in the NHS, social care and education.

"The CPS will now pursue confiscation proceedings against the defendants, to prevent them enjoying the benefits of their criminal enterprise."

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