Travel agent, Hardev Singh Chaggar, (d.o.b 25/1/54) was sentenced today to 2 concurrent terms of 18 months imprisonment suspended for 2 years. He was disqualified from acting as a company director for 8 years. He pleaded guilty to 1 charge of false accounting and 1 charge of fraudulent trading.
Chaggar ran Leeds based travel agency, Enterprise Travel Ltd ('Enterprise'). The charges relate to funds that he diverted from the company account and used for his own personal benefit to develop property in the Leeds area.
Background
In late 1990, when Emirate Airlines started operating direct flights from Manchester to the Indian sub continent Enterprise became one of three UK consolidation agents for the airline. As tickets could only be bought through a consolidation agent Enterprise received substantial income from Emirates ticket sales: at their peak sales were worth approximately £760,000 a month.
However, Chaggar was siphoning off funds from the company to buy, refurbish and develop property around Leeds. Thus, by January 1994 Enterprise's overdraft had reached £816,831.
In March 1994, the company's bankers, Lloyds Bank, refused to lend Enterprise any further money. Consequently the company was unable to pay the £473,359 it owed as its monthly payment to IATA (International Air Transport Association) in respect of ticket sales which included £331,600 relating to Emirates Airlines ticket sales. Emirates Airlines withdrew the company's consolidation agency and at the end of March, Enterprise Travel was placed in voluntary liquidation.
Enterprise's creditors include Lloyds Bank, and airlines whose tickets had been sold by Enterprise, who were paid through monthly payments made to IATA.
Investigation/Proceedings
Following the liquidation of Enterprise Travel, suspected fraud was reported to West Yorkshire Police and subsequently referred to the SFO. Officers from the West Yorkshire Police continued to support the investigation which led to the charging of Chaggar in March 1999. The trial opened at Leeds Crown Court on 6 September 2000. On 11 September, during the proceedings, Chaggar pleaded guilty and was sentenced today.
Counsel for the Prosecution were: Peter Collier QC and Guy Kearl.
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