UK: Indian-origin fake designer clothing scam mastermind ordered to repay millions of pounds

The scam mastermind was identified as 57-year-old Arif Patel.

"The Crown Prosecution Service (CPS) secured a Confiscation Order against Arif Patel, 57, at Chester Crown Court on 28 August 2025," Crown Prosecution Service said in a statement.

Clothing manufacturer Arif Patel, of Preston, and his criminal gang stole £33.4 million from the UK government through fake VAT repayment claims on false exports of textiles and mobile phones. They also imported and sold counterfeit clothes valued at over £19.19m. They set up a sophisticated chain of sham companies to cover their tracks.

The proceeds were used to buy property across Preston and London using offshore bank accounts.

Following a joint investigation between HMRC and Lancashire Police, and prosecution by the CPS, Arif Patel was convicted of false accounting, conspiracy to cheat the public revenue and money laundering.

Adrian Foster, Chief Crown Prosecutor of the Crown Prosecution Service Proceeds of Crime Division said: “The CPS has worked robustly with HMRC and Lancashire Police to ensure that Arif Patel could not keep the benefit from his fake counterfeit designer clothes scam and fraudulent VAT claims.

“In total he must pay back more than £90 million or have more prison time added to his original sentence.

“In the last five years, £478 million has been recovered from CPS obtained Confiscation Orders, ensuring that thousands of convicted criminals cannot profit from their offending. Over £95 million of that amount has been returned to victims of crime, by way of compensation.”

Richard Las, Director, Fraud Investigation Service, HMRC, said: “Arif Patel lived a lavish lifestyle at the expense of the law-abiding majority, but he will now lose the property empire he amassed from the proceeds of crime."

“Our work never stops at conviction. For the last two years we’ve worked with police and CPS partners to secure one of the biggest criminal confiscations we’ve ever recovered,"  Richard Las said.

“Tens of millions of pounds of stolen money will now go back to directly fund public services," Las said.

Mark Winstanley, Assistant Chief Constable from Lancashire Police said: "Arif Patel was the head of a Preston based Organised Crime Group responsible for causing millions of pounds worth of losses to multiple companies."

His actions, motivated by greed, directly impacted the taxpayer.

A multi-agency operation involving Lancashire police and HMRC has worked tirelessly to bring confiscation proceedings to this point. 

"The Confiscation Order granted for £90,503,211 will ensure funds are returned to the public purse thereby recovering his criminal gains. Lancashire Police are committed to ensuring that crime doesn’t pay and will pursue every avenue to recover monies and assets from those that seek to exploit others for their own gain."