Four Convicted in UK’s Largest-Ever Money Laundering Case

Four men have been found guilty of laundering a staggering £266 million through a scrap jewelry business in West Yorkshire, marking what is believed to be the biggest money laundering case ever prosecuted in the UK. Gregory Frankel, 47, Daniel Rawson, 47, Haroon "Harry" Rashid, 54, and Arjun Babber, 32, were convicted following a trial at Leeds Crown Court, while socialite James Stunt, the former son-in-law of Formula One magnate Bernie Ecclestone, was cleared of any involvement in the operation. Prosecutors had alleged that Stunt played a role in disguising the origins of the illicit funds and in purchasing gold, but the jury found him not guilty.

The extensive investigation, spearheaded by West Yorkshire Police, uncovered that the massive sums of criminal money were funneled through Fowler Oldfield, a now-defunct wholesale jewelry business based in Bradford. The impact of the operation extended beyond the individuals involved, reaching UK banking giant NatWest, which in 2021 pleaded guilty to failing to properly monitor £365 million deposited into Fowler Oldfield's account. The bank was subsequently fined £265 million for its failure to prevent the illicit financial activity.

During the trial, evidence was presented detailing how enormous amounts of cash arrived daily at Fowler Oldfield. Couriers transported bags of money from various locations, including Glasgow, Manchester, and Merseyside, delivering them to the business premises. CCTV footage played a crucial role in exposing the scale of the operation, capturing images of couriers entering with heavy bags filled with cash. According to West Yorkshire Police, "At one point, £1.7 million arrived each day – in cash, stored in sports bags, carrier bags, and even takeaway food containers."

Fowler Oldfield processed the money using specialized counting machines, after which cash-in-transit companies deposited the funds into bank accounts. A significant portion of the laundered money was used to buy gold grain, a form of gold that is harder to trace than bullion, making it more difficult for law enforcement to track. Authorities suspect that much of the gold purchased in the scheme was ultimately moved out of the UK.

The case dates back to 2016 when the Economic Crime Unit of West Yorkshire Police launched an investigation following concerns raised by a cash-in-transit company regarding unusually large amounts of cash collected from Fowler Oldfield. Although the company claimed to deal in scrap jewelry, the vast sums of money moving through its accounts triggered suspicion. Investigators meticulously reviewed over 8,000 hours of CCTV footage, as well as emails and invoices. "From January 2014 to September 2016, more than £266 million was deposited into Fowler Oldfield's accounts," confirmed West Yorkshire Police. The scale of the operation grew at an astonishing rate; in 2012, Fowler Oldfield received just £11,000 in cash, but by 2015, this figure had skyrocketed to £95 million.

The trial, which spanned nearly five months, revealed a highly sophisticated money laundering network. Couriers involved in the scheme carried tokens and passwords to identify themselves when delivering the cash. Encrypted messages exchanged between the suspects further highlighted the level of organization within the criminal operation. In September 2016, as part of their investigation, West Yorkshire Police executed a search warrant at Fowler Oldfield’s premises, leading to the seizure of £2.1 million in cash, which no individual came forward to claim.

Law enforcement officials emphasized that this case represents a significant step in tackling money laundering within the UK. Assistant Chief Constable Pat Twiggs of West Yorkshire Police stated, "This was a sophisticated operation to launder a substantial sum of money tied to criminal activity." The Crown Prosecution Service also underscored the magnitude of the case, with Hannah Von Dadelszen from the CPS stating, "This case ranks among the largest money laundering prosecutions in England and Wales. It involved an enormous amount of cash, clearly linked to criminal activities. The defendants played a central role in laundering and legitimizing the dirty money, ultimately bringing it into the banking system."

By fLEXI tEAM