Hashtroudi brothers jailed for Alcatraz tax fraud

Bournemouth brothers Shahab Hashtroudi, 64, Shahin Hashtroudi, 58, and Hedayat Hashtroudi, 68, ran premises in Dorset, Hampshire and Surrey.

All three appeared at Southampton Crown Court on Friday, clearly expecting immediate prison sentences, dressed in casual clothes and carrying packed bags.

The court heard the trio used the money to prop up their ailing businesses, which were hit hard by the recession of 2007/2008, and to fund their lavish lifestyles.

HM Revenue and Customs (HMRC) Fraud Investigation Service assistant director Richard Wilkinson said: "The Hashtroudi brothers were serial offenders in setting up businesses and ripping off the British taxpayer, by pocketing the income tax and national insurance contributions employees had paid and also VAT on sales. 

"The money they failed to declare is the equivalent to the starting salaries of 165 nurses for a year."
Ringleader Shahab Hashtroudi, who was sentenced to six years in prison after being convicted on four charges, drove a Porsche and sent his child to private school, the court heard. 

Passing sentence, Judge Peter Henry told Shahab Hashroudi – who stood with his head bowed – that "you were the power behind the throne."

The judge told the married father-of-two: "You, ultimately, were the orchestrator of this cheat. You involved others in this fraud by pressure, by persuasion, by force of personality, or by playing on the desire of some to keep their jobs.

"You took the lead role. It was said that you always intended to pay HMRC if you could. But it was an obligation Mr Hashtroudi."

Younger brother Shahin Hashtroudi, a married father-of-three, who was convicted of one charge, was sentenced to four years in prison.

Married Hedayat Hashroudi, the oldest of the brothers and also a father, was sentenced to four years after being convicted of the single fraud charge.

All three brothers lived close to one another in Bournemouth's plush Talbot Woods district.

Their bookkeeper Tracy Carder, a 42-year-old mum of two, from Poole, was sentenced to two years, suspended for two years, for her part in the scam.

HMRC said her actions, continuing to lie about the companies' true tax liabilities, enabled the fraud to continue. 

Alcatraz brothers were 'working to turn the business around'

HUNDREDS of staff employed by the Hashtroudi's were affected by their crimes, as their income tax and national insurance contributions were pocketed by the brothers as part of the £3million tax fraud.

During mitigation, the court heard how all three brothers were family men, and a string of character references were considered, which painted them as "respected men" who were "reluctant to see redundancies."

Indeed, barristers representing the trio, and co-defendant Tracey Carder, said all were making efforts to turn the business around.

Kate Green, representing Shahab Hashtroudi, told the court: "He (Shahab) has been described as a father figure by staff.

"It was always his intention to pay the revenue if he could.

"The business model no longer worked, and it had not for a number of years. He was reluctant to see redundancies; in this regard his loyalty and compassion for others clouded his commercial vision."

Nick Tucker, mitigating for Shahin Hashtroudi said that throughout the seven-week trial his client had been referred to, by the prosecution, as the "figurehead" and "a director in name alone."

However, Judge Peter Henry, passing sentence, told Shahin Hashtroudi: "I have no doubt that you knew perfectly well what was going on, you lent yourself to it.

"You knew perfectly well what was going on during that period, and you benefitted from it."

The oldest brother, Hedayat Hashtroudi, was described by his barrister, Malcolm Gibney, as a "loyal family man."

Mr Gibney said: "He lived a frugal lifestyle, with no demonstrable trappings of wealth. 

"He worked in excess of 70/80 hours a week, he was a man committed to trying to keep a roof over other people's heads.

"It is a misguided sense of loyalty that has brought him before the court."

However, Judge Henry, describing it as a "sustained fraud" told Hedayat Hashtroudi: "You knew what was going on, you benefitted considerably."