Criminal network behind UK mini-marts enables migrants to work illegally, BBC finds | BBC News

Key Concepts

• Organized Crime Network: A structured group of individuals engaged in illegal activities for profit.
• Illegal Working: Employment of individuals without the legal right to work in a country.
• Tax Evasion: Illegally avoiding payment of taxes.
• Ghost Directors: Individuals whose names are used on official company documents to conceal the true owners and facilitate illegal activities.
• Off-the-Books Sales: Transactions conducted without official records or documentation, typically to evade taxes and oversight.
• Counterfeit/Smuggled Illegal Cigarettes: Tobacco products that are either fake or have been brought into the country illegally to avoid duties and taxes.
• Asylum Seeker: A person who has applied for asylum and is awaiting a decision on their application.
• High Street Crime: Criminal activities occurring in commercial areas accessible to the public.
• National Crime Agency (NCA): The United Kingdom's lead agency against organized crime.
• Trading Standards Institute: An organization that protects consumers and businesses by enforcing laws and regulations.

BBC Investigation into High Street Organized Crime

This BBC investigation exposes a widespread organized crime network operating on British high streets, involving illegal working, fraud, and tax evasion. Undercover reporters have documented how asylum seekers, often with refused asylum claims and no right to work, are able to establish and operate businesses such as mini-marts, barber shops, and car washes. These operations are part of a larger criminal network that spans across the UK, from Dundee to South Devon.

Uncovering the "Ghost Director" Scheme

The investigation reveals a sophisticated method of concealing criminal activity through the use of "ghost directors." These are individuals, often paid, who lend their names to official company documents, thereby masking the true owners and their illicit operations.

• Mechanism: An asylum seeker, such as "Seriy" in Crewe, who claims his asylum application was refused, was found to be operating a mini-mart. He intended to sell the business for £18,000 in cash, an "off-the-books" transaction with no documentation.
• Facilitation: Seriy explained that he pays someone else to put their name on official documents, effectively creating a "ghost director" to hide his ownership and the illegal nature of the business.
• Scale: The investigation identified two recurring names, Hadi Ahmad Ali and Ishmail armed for Zander, linked to numerous high street businesses. Hadi Ali has been a director of 50 companies, and Ishmail has been a director for 20, totaling 70 shop fronts across the country.
• Red Flags: Data analysis shows these names appearing repeatedly across company filings, with a notable absence of filed accounts, which is indicative of tax fraud. The practice of striking off companies and starting new ones is a strong hallmark of organized criminal activity.

Illegal Operations and Exploitation

The businesses investigated, particularly mini-marts, were found to be involved in selling illegal goods and employing individuals without the right to work.

• Illegal Cigarettes: Many mini-marts were discovered to be selling counterfeit and smuggled illegal cigarettes. Seriy's mini-mart, "Top Store," was found to have a hidden stash of untaxed cigarettes.
• Sales to Minors: The undercover reporter witnessed and recorded instances of vapes being sold to teenagers. Seriy admitted to selling vapes to children.
• Illegal Working: An Iraqi Kurd working in a Blackpool mini-mart revealed he left an asylum seeker hotel to work full-time in the shop, enduring exhausting 14-hour days, 7 days a week. He expressed concern about how to handle trading standards inspections when engaged in illegal working.
• Confrontation: When confronted, Ishmail Fazander, identified as the ghost director of a shop, denied being Ishmail Fazander and refused to discuss the matter. Similarly, Seriy, when confronted at his shop, denied selling illegal cigarettes and vapes to children, claiming to have "paperwork" and "everything." Hadi Ali also denied any involvement, stating his name had been blocked by Companies House multiple times.

Network Reach and Official Response

The network of ghost directors and associated criminal activities is spread across the UK, with evidence found in Scotland, South Wales, and various cities.

• Geographic Spread: The investigation visited 15 mini-marts, with most selling illegal cigarettes. The Kurdish Facebook group used for advertising shops also shows listings across the UK.
• Official Reactions:
  • National Crime Agency (NCA): Acknowledged that criminal exploitation on high streets has become too large for any single organization to handle and requires a national approach. They are currently leading investigations across the UK and will review the evidence presented.
  • Trading Standards Institute: Identified high street organized crime as the number one threat to its members and is calling for urgent new government powers to quickly and effectively close down such establishments.
  • Home Secretary, Shabbana Mimmude: Stated that the government has increased enforcement actions, removing over 35,000 individuals without the right to be in the UK. She vowed to "do whatever it takes to secure Britain's borders" and assured that illegal workers will be arrested, detained, and removed.

Conclusion

The BBC investigation highlights a significant and organized criminal enterprise operating openly on British high streets. The "ghost director" scheme, coupled with illegal working, tax evasion, and the sale of illicit goods like counterfeit cigarettes, demonstrates a systemic failure in oversight and enforcement. While authorities like the NCA and Trading Standards recognize the severity of the issue and are calling for stronger measures, the scale of the problem suggests a need for a coordinated and robust national response. The Home Secretary's statement indicates a commitment to increased enforcement and border security.