UK Authorities Recover £265,000 From Indian-Origin Mortgage Fraudster

Indian-origin convicted fraudster Parmjit Dhami, 34, has paid £265,000 (about Rs 3.37 crore) after UK authorities pursued civil recovery action against a property he bought using a fraudulently obtained mortgage.

The UK’s Crown Prosecution Service (CPS) said Dhami, an Essex-based businessman, had obtained a mortgage in 2010 using false information about his business and income, backed by fake payslips. He used the loan to purchase a property in Ilford, east London, which was later rented out to generate rental income.

The latest recovery comes after Dhami had already been ordered to pay a £146,150 confiscation order (about Rs 1.86 crore) linked to another fraudulent mortgage. CPS prosecutors subsequently launched separate civil recovery proceedings against the Ilford property.

“This case demonstrates that a criminal conviction and confiscation order may not be the end of our efforts to recover the ill-gotten gains of convicted criminals,” said Tom Oates of the CPS Proceeds of Crime Division.

“After securing payment of a £146,150 confiscation order relating to one fraudulent mortgage, our specialist prosecutors pursued separate civil recovery proceedings concerning the property bought with the earlier mortgage. As a result, a further £265,000 has now been recovered,” Oates said.

Prosecutors said Dhami obtained a second fraudulent mortgage in 2014 to buy a family home in Hornchurch, Essex. He used a mortgage broker based in the West Midlands and made a payment to a sham company, Delaware Securities Limited.

The money was returned to Dhami after a commission was deducted, while false payslips were produced to make it appear that he was employed by the company.

The mortgage broker was investigated by the West Midlands Regional Organised Crime Unit. The broker and four people who had used his services to fraudulently obtain mortgages were prosecuted for conspiracy to commit fraud.

Dhami pleaded guilty to conspiracy to commit fraud at Birmingham Crown Court and received a suspended nine-month sentence.

The CPS Proceeds of Crime Division later opened a civil recovery investigation into the Ilford property. It sought a civil recovery order covering 85 per cent of the property's equity, with the remaining 15 per cent representing the portion acquired through a legitimate deposit.

The claim was settled by agreement, and the High Court in London ordered Dhami and his wife, who had claimed an interest in the property, to pay £265,000 (about Rs 3.37 crore) within three months.

The CPS said the property could potentially have been sold to recover the money if the payment was not made. However, the full £265,000 has now been paid within the required period.

Oates said the CPS would continue using powers under the Proceeds of Crime Act to ensure people who benefit from unlawful conduct do not retain assets obtained through criminal activity.