Fraudster pays £265,000 after CPS targets property bought with fraudulent mortgage

A convicted mortgage fraudster has paid £265,000 after the Crown Prosecution Service took civil recovery action against a property purchased using a fraudulently obtained mortgage.
Parmjit Dhami, of Hornchurch, Essex, secured a mortgage in 2010 using false information about his business and income, supported by fake payslips. The mortgage was used to purchase a property in Ilford, which was subsequently rented to tenants, with Dhami receiving the rental income.
In 2014, Dhami obtained a second fraudulent mortgage to purchase a family home in Hornchurch. 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 him, minus the commission, and false payslips were produced to make it appear that he was employed by the company. 
The broker was investigated by the West Midlands Regional Organised Crime Unit. The broker and four people who had used his services to obtain mortgages fraudulently were prosecuted for conspiracy to commit fraud. Dhami pleaded guilty and received a suspended sentence of imprisonment. 
The CPS Proceeds of Crime Division subsequently opened a civil recovery investigation into the Ilford property purchased using the first fraudulent mortgage and brought a claim in the High Court seeking a civil recovery order over an 85 per cent share of the equity in the property. The remaining 15 per cent represented the proportion acquired using a legitimate deposit. 
The claim was settled by agreement, and the High Court ordered Dhami and his wife, who claimed an interest in the property, to pay £265,000 within three months. Had the payment not been made, the property could potentially have been sold to recover the funds. The full £265,000 was paid within the required period. 

Tom Oates, from the CPS Proceeds of Crime Division, said:
“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.
“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. 
“We will continue to use the full range of powers available under the Proceeds of Crime Act to ensure that those who benefit from unlawful conduct do not retain those assets.”