Rain Post duo sentenced for film tax fraud

The fraud involved bogus VAT receipts and film tax relief claims and the creation of 20 front companies and multiple bogus films.

Former Rain Post chief operating officer Anish Anand was sentenced to seven years and disqualified as a director for seven years at Croydon Crown Court yesterday.

Former Rain director Afsana Karim was given a 12-month suspended sentence for two years and 100 hours of unpaid work.

Amit Kumar received an 18-month jail term, while Sanjeev Mirajkar was sentenced to 30 months.

Between 2007 and 2011, the group secured £4.6m by submitting fraudulent VAT returns and just over £400,000 through fraudulent applications for film industry tax relief.

Specialist fraud lawyer at the Crown Prosecution Service Neena Jhawer said: “This sophisticated fraud involved an attack on two separate elements of the tax system, VAT and film tax relief.

“Over a period of four years, the defendants went to extraordinary lengths to establish an apparently legitimate front to what they were doing: producing false invoices, scripts for films, shooting schedules, crew and cast lists, detailed budgets, contracts with writers and producers, and rented offices complete with letter heads and business cards.

“Like all fraud, however, this case boiled down to two very simple notions; greed and dishonesty.

“Had this fraud not been detected by HM Revenue and Customs, it would have cost them nearly £7m. This was clearly a very significant attack on the public purse and on a system designed to support and promote the UK film industry.

“The case demonstrates that even the most sophisticated frauds will not go undetected and complexity is no barrier to justice. The CPS is committed to supporting HMRC’s efforts to clampdown on those who cost the country billions in lost revenue.”

Rain Post launched in July 2011.

Less than two years later, the company went into liquidation amid claims that suppliers and freelancers were owed tens of thousands of pounds by the firm.