Twice convicted fraudster Haroon Khatab has been ordered not to conduct investment and financial management business for four years after his release from prison. The Serious Crime Prevention Order is the first in an SFO prosecution. Khatab, who is currently serving consecutive sentences amounting to 3 years, 3 months has also been disqualified from acting as a company director for 10 years.
The Serious Crime Prevention Order was made at Luton Crown Court today by HHJ Bright QC. It follows Khatab's conviction in September 2008 for his part in a boiler room fraud offering wine investments (Vintage Wines of St Albans Ltd) and his conviction in January this year for defrauding investors in his Asian frozen meals business (Tahir Tandoori Frozen Foods Ltd). Details were announced on SFO press release of 19 January.
This Serious Crime Prevention Order (see note 1) is the first such order obtained in an SFO prosecution. The order places stringent restrictions on Khatab's involvement in investment and financial management. Namely that for a period of four years beginning with the day upon which he is released from prison Khatab will not, without giving SFO notice of it with full details as to his intentions:
- directly or indirectly offer to sell or sell shares, investment opportunities or financial products of any sort (irrespective of whether such business is lawful, authorised or exempt under the regulatory regime of the Financial Services Authority), or facilitate the introduction of third parties for such business
- manage assets belonging to another person, give or offer any advice or assistance in respect of any investments (irrespective of whether such actions are lawful, authorised or exempt under the regulatory regime of the Financial Services Authority)
- engage in any business dealings with a number of his co-defendants in the Vintage Wines of St Albans prosecution and his co-defendants in the Tahir Tandoori Frozen Foods prosecution.
Additionally, there is a prohibition on Khatab approaching any previous clients of Vintage Wines of St Albans and Tahir Tandoori Frozen Foods and another company with which he was involved.
Confiscation proceedings are pending.
SFO Director Richard Alderman said, "This case demonstrates the widening range of available prosecutorial powers including the important objective of protecting the community from further risk of re-offending".
Notes for editors:
What is a Serious Crime Prevention Order?
The SCPO was created by Part 1 of the Serious Crime Act 2007 and they are a civil order aimed at preventing serious crime. These orders are intended for use against those involved in serious crime and the purpose of their terms is to protect the public by preventing, restricting or disrupting involvement in serious crime. They are made on application to either the High Court or, as in this case, the Crown Court upon conviction and breach of the order is a criminal offence. Further information on SCPOs can be found on; www.cps.gov.uk/legal/s_to_u/serious_crime_prevention_orders_(scpo)_guidance/index.html#A01
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