The mastermind of a sophisticated fraud, which cost the banking industry over £2.5million, has today been jailed in his absence.
No such scam had ever taken place in the UK nor, thanks to the banking institutions reinforcing their security, has any such fraud happened since it was uncovered over four years ago.
It is estimated that the total cost of the scam could have been up to £7.5million.
Greater Manchester Police, which smashed the operation, is now appealing to the public to help put the offender, Maxwell Parsons, where he now belongs – behind bars. The officer who carried out the extensive investigation, Detective Constable Carol Britton, was also today commended by the trial judge for her work in bringing Parsons to justice.
Today, 11th April 2014, Maxwell Parsons, a self-taught computer fraudster with previous convictions for other embezzlements, has been jailed for seven years at Manchester Crown Court, Crown Square, after being found guilty of conspiracy to defraud after a 4 week trial.
He will also serve a three year jail term, handed to him in his absence in February 2014, for an unconnected offence of theft. These will run consecutively, to make a total jail term of 10 years.
Two other offenders were also sentenced today for their role in the scam.
The fraudsters came up with a way to manipulate banking systems so that payments they made were automatically reversed.
Using bank accounts of people complicit in the fraud, or others who were coerced, purchases would be made and the fraudsters would glean information from the sales receipt. The majority of those purchases were for foreign cash from bureau de change, which was then converted back to sterling
These details, usually a short code, would be inputted into a computer programme named ‘merchant dialler’ designed by Parsons, which would effectively remove the earmark identifying the funds for the transaction, so that the amount in the account could be spent again and again.
The scam was fully active between December 2008 and 1st June 2009. The purchases were made all over the UK but mainly in Greater Manchester, where the majority of the gang were based.
At the peak of their activities, they laundered around up to £50,000 a day. The total amount taken was at least £2,560,833.84.
Anyone wi5th information on Parson’s whereabouts is asked to call police on 101 or Crimestoppers on 0800 555 111.
Detective Constable Carol Britton, of GMP’s Major Fraud Unit, was commended by the trial judge for single-handedly bringing Parsons and his co-defendents to justice. She said: “This was a systematic, sophisticated and large-scale fraud where a number of people were able to effectively steal money quickly.
“A lot of hard work has gone into this investigation. This fraud could not have been as damaging as it was to the banks had it not been for the teamwork between the various defendants. We therefore spent hours examining evidence to ensure we traced these people and that we had the full picture of what was happening.
“Maxwell Parsons is a prolific criminal who has deliberately been evasive with the authorities at every opportunity. Throughout this investigation and the trial he has done all he can to delay this day, but we have remained committed to bringing all of the perpetrators to justice.
“Parsons fled as his day of reckoning approached in court and has remained on the run since. He could be anywhere in the UK and goes by a number of aliases.
“Parsons is a well-practiced, convincing and persuasive liar and can talk himself out of almost any situation. If you recognise this man then please do the right thing straight away and call the police.
“Since this conspiracy, the banks themselves worked very hard to ensure that a similar scam could not happen again. We therefore want to make it clear that anyone who tries to embezzle money from banks will not succeed and more than likely to be caught, investigated by the police and brought to justice.”
Andrew West, Crown Advocate for the Crown Prosecution Service, said: “this was a very difficult and complex case to investigate, and it is greatly to the credit of Greater Manchester Police that they were able to untangle the fraud and to enable the case to be presented coherently.
“Maxwell Parsons has committed a number of unique frauds on the banking system, which, by their nature, were very difficult to detect and prosecute. In particular I would like to mention the work of DC Britton in investigating the case and bringing the culprits to justice.”
BREAKDOWN OF DEFENDANTS
Maxwell Parsons (born 26/5/65) whose last known address was Rosewell Court, Broomfield Road, Coventry, was found guilty of Conspiracy to Defraud and sentenced to seven years imprisonment.
Also on 3 December 2013 Maxwell Parsons was convicted at Manchester Crown Court, after a trial of two offences relating to fraud against banks in the Nottinghamshire area. Parsons developed a computer programme which could mimic the messages sent by a bank to a cashpoint machine. Parsons, in absence, was sentenced to three years imprisonment for the theft of £19,180 and two years concurrent imprisonment for Possession of articles for use in fraud, contrary to the Fraud Act 2006.
Takhliq Khaliq (born 3/2/67) of Boddens Hill Road, Heaton Mersey, pleaded guilty at an earlier hearing to Conspiracy to Defraud and used a company called Feranti Trading Limited, to facilitate some of the frauds. Takhliq Khaliq also pleaded guilty to an offence of False Accounting (Mortgage Fraud) and agreed to have that taken into consideration on sentencing. He was sentenced to 12 months imprisonment, suspended for two years, and ordered to carry out 200 hours unpaid work.
His brother Zaki Khaliq (born 5/4/70) of Carrwood Road, Bramhall, pleaded guilty at an earlier hearing to Conspiracy to Defraud. He will be sentenced at a later date.
Muhammed Khan (born 18/8/70) of Alexandra Road South, Whalley Range, a friend of the Khaliqs’ also pleaded guilty to Conspiracy to Defraud and was sentenced to 16 months imprisonment, suspended for two years.