Ex-councillor is first conviction for Eat Out to Help Out fraud

A West Yorkshire man has been jailed for two-and-a-half years for trying to steal more than £430,000 from the government’s Eat Out to Help Out scheme.

Introduced by then Chancellor of the Exchequer, Rishi Sunak, in July 2020, the initiative was part of the ‘Plan for Jobs’ strategy during the Covid-19 pandemic, supporting the hospitality sector. The government subsidised food and non-alcoholic drinks at cafés, pubs and restaurants, leading to a significant increase in restaurant visits.

But Mohammed Ikram, 36, of Keighley, admitted stealing money from the Covid-19 support schemes, following an investigation by HR Revenue and Custom’s (HMRC) Taxpayer Protection Taskforce.

He used his own café and takeaway business, as well as several fake food outlets to submit fraudulent claims under the scheme, pocketing thousands of pounds in payments that he was not entitled to. He received £189,208 in payments, but further claims totalling £244,865 were rejected and an investigation was launched. Mohammed Ikram was also previously a member of Keighley Town Council until his resignation last year.

The defendant and his wife were arrested on 16 June 2021, with the case against his wife dropped.

It’s the first HMRC conviction of Eat Out to Help Out fraud, with Mohammed Ikram admitting cheating the public revenue, fraud by false representation and associated money laundering. More than half the money paid out has reportedly been recovered by HMRC, with around £93,000 still outstanding.

Deputy circuit judge, Timothy Clayson, told the defendant: “Even if I accept your assertion that some of this money was obtained with a view to covering financial obligations, given the sums involved, it’s apparent the vast majority of this was motivated by greed.”

Simon York, director, Fraud Investigation Service, HMRC, said: “This was a blatant fraud by somebody who held a position of trust and responsibility.

“These schemes were designed to support individuals and businesses during a terribly difficult period. Instead, Mohammed Ikram stole money which should have been paying for vital public services and helping those who needed it most.

“This is the first conviction of Covid scheme fraud by HMRC, but we have arrested 70 people and have a number of cases working their way through the criminal justice system. So far, we have prevented the payment of, or recovered more than £1.2 billion, with compliance activity still ongoing.”