A Preston businessman convicted of orchestrating one of Britain’s largest tax frauds continues to live openly in Dubai more than a decade after fleeing the country while on bail, according to a BBC investigation.
Arif Patel, who once featured in the Sunday Times Rich List with estimated wealth of £105m, was convicted in his absence in 2023 and handed a 20-year prison sentence for stealing more than £33m of public money. Despite the conviction, he has not served a single day behind bars.
The investigation by His Majesty’s Revenue and Customs (HMRC) uncovered that Patel had attempted to steal as much as £90m through an elaborate carousel fraud scheme involving his textiles company, Faisaltex. The scam ran throughout the early 2000s before investigators finally caught on.
How the fraud worked
Carousel fraud involves creating chains of fake business transactions to steal VAT repayments from HMRC. Goods are moved between different companies, crossing borders repeatedly to generate false tax refunds – hence the name “carousel”.
Unlike most carousel fraudsters who dealt in high-value items such as mobile phones or computer chips, Patel used textiles, making the scheme harder to detect. Rod Stone, a veteran investigator of large-scale tax fraud, told the BBC that investigators noticed suspicious patterns, including “a container load of hats to Switzerland” which “seemed odd because they were actually Swiss hats”.
The judge at Patel’s sentencing hearing described him as the leader of a “fraternal organised crime group” alongside his brothers Munaf and Faisal, calling them “truly high-level criminals”. Patel himself was characterised as “breathtakingly arrogant” and “totally dishonest”.
Escape to Dubai
When Patel appeared at Bolton Crown Court in 2011 to face charges including conspiracy to cheat the taxman, money laundering and false accounting, he requested permission to travel to Dubai on bail. The judge granted the request, and Patel left the UK permanently.
Over the following three years, 24 members of Patel’s network were convicted and collectively jailed for more than 116 years. His brothers had already fled to Dubai before they could be charged. Efforts to extradite Arif Patel failed.
Graham Honey, a former HMRC investigator, said he was approached by Patel’s representatives in 2020 while working in the private sector. According to Honey, Patel wanted to negotiate a settlement. “He just thought he could get an agreement, pay some money, and this would all go away,” Honey told the BBC. Patel was reportedly willing to admit guilt and repay money, but refused to return to face trial or imprisonment.
In 2023, Patel was tried and convicted in his absence – something done only as a last resort. He received a 20-year sentence and was subjected to a confiscation order for £90.5m in 2025. However, none of the money has been recovered, as Patel has been able to appeal the confiscation order from overseas.
The BBC investigation discovered numerous websites and press releases celebrating the achievements of a Dubai-based businessman named Arif Patel, with links to Preston and the textile industry. One article featured a genuine photograph of Patel, which facial recognition technology matched to images of him at glamorous events in Dubai.
What this means for Poles in the UK
This case highlights ongoing weaknesses in the UK’s ability to recover stolen public funds and pursue fugitive criminals who flee to jurisdictions without extradition treaties. The £33m stolen by Patel came from taxpayers – including Polish residents in Britain who pay VAT on purchases and contribute to the public purse through income tax and national insurance.
Carousel fraud schemes remain a threat to the UK tax system, though HMRC has strengthened its detection methods since Patel’s crimes. If you run a business in the UK, be aware that HMRC closely monitors unusual patterns in VAT reclaims, particularly involving cross-border transactions. Any business owner approached to participate in a “too good to be true” supply chain arrangement should report it to HMRC’s fraud hotline.
Dame Margaret Hodge, the prime minister’s anti-corruption champion, told the BBC that Patel “should not be beyond the reach of the British justice system” and criticised a system that “allows those with money to delay the implementation of a punishment for a crime”. For ordinary taxpayers, the case serves as a reminder that while the wheels of justice can turn slowly, high-profile fraudsters sometimes avoid accountability altogether when they have the resources to flee and fight from abroad.