Leicester conman jailed over £320,000 franchise licence fraud

A warrant was issued for Nazir Daud's arrest after he failed to turn up at his trial

A man who conned people into investing in his business venture before going on the run ahead of his trial has been jailed.

Nazir Daud sold thousands of pounds worth of fraudulent franchise licences to his victims and falsely claimed they could earn up to £2,000 a month, Leicestershire County Council said.

The 59-year-old was found guilty of fraud in his absence in December 2022.

He was arrested in October and was jailed for four years on Wednesday.

Leicestershire County Council, which investigated statements from 18 of Daud's victims, said he set up his company Payrolls Direct Limited in 2014.

The authority said he advertised franchise licences for a new cloud-based payroll system, which he was selling for between £5,995 and £9,995.

Franchisees would sign up clients, process payroll for each employee of the company they signed up, and Payrolls Direct would take 20% of the fee.

But the council said only one out of 18 franchisees were able to sign up any clients, while promises of unlimited help and training were never provided.

The cash value of the fraud was put at more than £320,000, according to the council.

He was sentenced at Leicester Crown Court on Wednesday

Daud was banned from being a company director for 15 years and his company was fined £973,000 at Leicester Crown Court.

He was also ordered to pay prosecution costs of £30,046.

The fraudster had previously been found guilty on three counts in relation to false representations made between 2015 and 2018 and a further charge of fraudulent trading.

Daud, formerly of Landseer Road, Leicester, was arrested after a judge issued a warrant for his arrest after he failed to appear in court.

During the trial, another man, Anthony Raybould, 65, of Alumhurst Road, Bournemouth, received a suspended sentence for his role in the scheme.

He admitted fraud by false representation under the Fraud Act 2006 and fraudulent trading under the Companies Act 2006.

He was given a 22-month sentence suspended for two years.