A former Councillor was sentenced to prison for attempting to embezzle £434,000 through the government's Eat Out to Help Out programme. On the proposal of the then-Chancellor Rishi Sunak, Mohammed Ikram of Keighley submitted 19 false claims over the course of four weeks in August and September 2020.
The project let food outlets offer 50% discounts to aid the hospitality sector as Covid-19 restrictions were relaxed.
HM Revenue and Customs (HMRC) said it was the first fraud conviction associated with the scheme. Ikram was sen[1]tenced to two years and six months in prison after pleading guilty to tax fraud, fraud by false representation, and related money laundering. He was also a member of Keighley Town Council until his resignation in 2022, HMRC said.
The 36-year-old submitted 19 false claims totalling £434,073 for eight different food establishments through the programme, the majority of which, Bradford Crown Court prosecutor Timothy Jacobs said, were "completely fictitious."
Mr Jacobs told the court that eight of the 19 claims were paid by the government, with just over £189,000 being paid into bank accounts held by Ikram's wife. The other 11 claims were rejected. HMRC has recovered more than half of the money given out, but the court was informed that just under £93,000 is still owed.
Mr Jacobs said Ikram registered with the scheme and used his own name and telephone number for each of his claims, with the computer IP address used later traced to his home in Springfield Court, Keighley.
The Taxpayer Protection Team of HMRC conducted an investigation that resulted in the defendant and his wife's arrest on June 16 2021. Later, the charges against his wife were withdrawn.