STAFF REPORT
Britain’s Serious Fraud Office (SFO) has confirmed that it has dropped a high-profile criminal fraud investigation into the well-known British-Pakistani businessman Nisar Ahmed Afzal. The SFO was investigating an alleged mortgage fraud case of 49 million pounds spanning more than 15 years of investigation in both the United Kingdom (UK) and Pakistan.
SFO authorities have confirmed that criminal proceedings against Nisar Afzal have been closed. His seized assets have been returned to him, and he is no longer subject to an arrest warrant and the Restraint Order.
The Birmingham Mortgage Fraud case became one of the biggest cases of its nature in UK history. Nisar Afzal left for Pakistan in 2006 at the start of the investigation. He was never charged and he stressed his innocence from Pakistan, through his UK lawyers. He alleged that he was wrongly framed due to a high-profile conspiracy.
The SFO has confirmed that the Restraint Orders, first secured on 24th July 2006, against Nisar Afzal have been discharged. “There are no proceedings by the SFO,” against him anymore. The arrest warrant, secured at the Westminster Magistrates’ Court against Nisar Afzal on 29th October 2010 has been withdrawn by the director of the SFO under the Criminal Justice Act 1987.
The Southwark Crown Court ordered the release of the Restraining Order and discharging of the arrest warrant after the SFO made an application to the court before His Honour Judge Michael Grieve QC. The SFO said they will no longer pursue the criminal case against Nisar Afzal and planned to close the file. The court Order reads: “It is ordered that the Restraint Order granted by His Honour Judge Elwen on 24 July 2006 as varied shall be discharged.”
The Birmingham Mortgage Fraud case is seen as one of the most complex cases investigated by the SFO with help from National Crime Agency (NCA) and cooperation from Pakistan’s National Accountability Bureau (NAB).
In May 2019, a senior investigator of the NCA visited NAB’s Rawalpindi office to obtain evidence that could corroborate “the banking transaction data already obtained in the UK”, according to a letter written by NCA to NAB. In the same letter, the NCA told a senior NAB official it was “pleased to notify you that following our cooperation in the matter and the information that NAB has provided, the SFO was able to successfully confiscate a £1.53 million from the Afzal family in the High Court of London”.
The 50 million pound Birmingham Mortgage Fraud, according to SFO, took place between 2004 and 2006. Offences included two counts of conspiracy to obtain money transfers by deception and four counts of obtaining a money transfer by deception. The Westminster Magistrates' Court ordered the forfeiture of all the funds held in Nisar Afzal's frozen bank account at the start of the investigation — the funds which are now released.
There was an arrest warrant issued at the Westminster Magistrates’ Court for Nisar Afzal’s arrest but the UK government never asked the Government of Pakistan to bring him back to face trial.
Exactly 10 years ago, the SFO said that they believed that Nisar Afzal had taken at least 26 million pounds with him. “We do want Nisar Ahmad Afzal back in the UK to stand trial and we have a warrant for his arrest. If he returns to the UK, he will be charged. We do not wish to comment at this stage about extradition or contact with the authorities in Pakistan,” the SFO spokesman said.
This Birmingham Mortgage Fraud case has seen twists and turns like few other cases. The list of twists include: The investigation continued for over 15 years. In 2011, Nisar Afzal was arrested and held in Pakistan for alleged fraud and land-grabbing offences. His lawyers said that this arrest was on the instructions of a senior Pakistan Peoples Party (PPP) leader who was in the government. Then, Afzal’s younger brother made a guilty plea under “duress”. At one instance, the SFO requested to adjourn the case and admitted that they have no chance of success if Nisar Afzal’s defence is true.
Most of those accused in the case have been acquitted or they have witnessed hung juries. The UK and Pakistan’s wide ranging cooperation was also a sight to behold. And it all ended with the SFO dropping the case against Nisar Afzal due to lack of evidence to establish criminality.
Saghir Afzal, Afzal’s brother, and Ian McGarry, banking expert were also charged in the case, along with six solicitors who conducted the property transactions on their behalf. At the trial three of six solicitors were acquitted, the jury was unable to reach a verdict about the other three.
During a hearing in September 2018, the SFO investigators admitted to the court that Nisar Afzal had consistently pleaded his innocence and abuse of power. The SFO said they will close the file if it turns out that Nisar Afzal’s position was right, and that he was not involved in the criminal conspiracy.
Although Nisar Afzal was never charged for the allegations for which his brother was convicted, the SFO still wanted him to return to the UK to face trial. Nisar Afzal stressed that he would return to the UK to be prosecuted, once the SFO confirmed in writing that it had completed its investigations in the UK and Pakistan.
Nisar Afzal asked the SFO to investigate through the British High Commission and Pakistan High Commission, but the SFO didn’t do that.
Nisar Afzal’s lawyers argued that if Nisar assisted his own evidence then the SFO would not accept it as genuine. On the other hand, the NCA didn’t actively gather evidence. The lawyers argued that it was unjust that the matter was not being investigated fairly. Evidence that was capable of exonerating Nisar Afzal, was not being obtained.
The lawyers argued with the SFO in legal correspondence that the actions being taken by the SFO, including seizure of assets, were tantamount to “abuse of process
Nisar Afzal’s brother Saghir Afzal was jailed for 10 years in 2011. As mentioned before, this was around the time Nisar Afzal was kidnapped in Pakistan. Saghir’s lawyers told the Court of Appeal that Saghir was never involved in any criminal act but pleaded guilty under extreme duress.
According to a letter by Nisar Afzal’s lawyers to the SFO: “At the time of the appeal hearing, no enquiries were made by the SFO or the Appeal authorities or the Pakistan authorities. He believes that this meant that there was vital information that may have assisted in submissions being made by Saghir Afzal in being presented to the court.”
Throughout the 15-year investigation, Nisar Afzal disputed the criminal case against him. He stressed that he was a victim of abuse of power. He said he didn’t commit any fraud or criminal act and that the SFO had failed to properly investigate one Abdul Ajram who, he said, was the one involved in criminal wrongdoing.
In the meantime, Nisar Afzal’s assets remained frozen through a confiscation order by the Westminster Magistrates’ Court.
After a 15 years of litigation, the SFO informed the court that it has closed the cases and investigations against Nisar Afzal due to lack of evidence. They further requested to the court that his assets should be returned to him. It is understood that Nisar Afzal plans to launch a series of legal actions.
Britain’s Serious Fraud Office (SFO) has confirmed that it has dropped a high-profile criminal fraud investigation into the well-known British-Pakistani businessman Nisar Ahmed Afzal. The SFO was investigating an alleged mortgage fraud case of 49 million pounds spanning more than 15 years of investigation in both the United Kingdom (UK) and Pakistan.
SFO authorities have confirmed that criminal proceedings against Nisar Afzal have been closed. His seized assets have been returned to him, and he is no longer subject to an arrest warrant and the Restraint Order.
The End of a 15-year investigation
The Birmingham Mortgage Fraud case became one of the biggest cases of its nature in UK history. Nisar Afzal left for Pakistan in 2006 at the start of the investigation. He was never charged and he stressed his innocence from Pakistan, through his UK lawyers. He alleged that he was wrongly framed due to a high-profile conspiracy.
The SFO has confirmed that the Restraint Orders, first secured on 24th July 2006, against Nisar Afzal have been discharged. “There are no proceedings by the SFO,” against him anymore. The arrest warrant, secured at the Westminster Magistrates’ Court against Nisar Afzal on 29th October 2010 has been withdrawn by the director of the SFO under the Criminal Justice Act 1987.
The Southwark Crown Court ordered the release of the Restraining Order and discharging of the arrest warrant after the SFO made an application to the court before His Honour Judge Michael Grieve QC. The SFO said they will no longer pursue the criminal case against Nisar Afzal and planned to close the file. The court Order reads: “It is ordered that the Restraint Order granted by His Honour Judge Elwen on 24 July 2006 as varied shall be discharged.”
Birmingham Mortgage Fraud case
The Birmingham Mortgage Fraud case is seen as one of the most complex cases investigated by the SFO with help from National Crime Agency (NCA) and cooperation from Pakistan’s National Accountability Bureau (NAB).
In May 2019, a senior investigator of the NCA visited NAB’s Rawalpindi office to obtain evidence that could corroborate “the banking transaction data already obtained in the UK”, according to a letter written by NCA to NAB. In the same letter, the NCA told a senior NAB official it was “pleased to notify you that following our cooperation in the matter and the information that NAB has provided, the SFO was able to successfully confiscate a £1.53 million from the Afzal family in the High Court of London”.
The 50 million pound Birmingham Mortgage Fraud, according to SFO, took place between 2004 and 2006. Offences included two counts of conspiracy to obtain money transfers by deception and four counts of obtaining a money transfer by deception. The Westminster Magistrates' Court ordered the forfeiture of all the funds held in Nisar Afzal's frozen bank account at the start of the investigation — the funds which are now released.
There was an arrest warrant issued at the Westminster Magistrates’ Court for Nisar Afzal’s arrest but the UK government never asked the Government of Pakistan to bring him back to face trial.
Exactly 10 years ago, the SFO said that they believed that Nisar Afzal had taken at least 26 million pounds with him. “We do want Nisar Ahmad Afzal back in the UK to stand trial and we have a warrant for his arrest. If he returns to the UK, he will be charged. We do not wish to comment at this stage about extradition or contact with the authorities in Pakistan,” the SFO spokesman said.
Many Twists and Turns
This Birmingham Mortgage Fraud case has seen twists and turns like few other cases. The list of twists include: The investigation continued for over 15 years. In 2011, Nisar Afzal was arrested and held in Pakistan for alleged fraud and land-grabbing offences. His lawyers said that this arrest was on the instructions of a senior Pakistan Peoples Party (PPP) leader who was in the government. Then, Afzal’s younger brother made a guilty plea under “duress”. At one instance, the SFO requested to adjourn the case and admitted that they have no chance of success if Nisar Afzal’s defence is true.
Most of those accused in the case have been acquitted or they have witnessed hung juries. The UK and Pakistan’s wide ranging cooperation was also a sight to behold. And it all ended with the SFO dropping the case against Nisar Afzal due to lack of evidence to establish criminality.
Saghir Afzal, Afzal’s brother, and Ian McGarry, banking expert were also charged in the case, along with six solicitors who conducted the property transactions on their behalf. At the trial three of six solicitors were acquitted, the jury was unable to reach a verdict about the other three.
During a hearing in September 2018, the SFO investigators admitted to the court that Nisar Afzal had consistently pleaded his innocence and abuse of power. The SFO said they will close the file if it turns out that Nisar Afzal’s position was right, and that he was not involved in the criminal conspiracy.
An Unfair Trial?
Although Nisar Afzal was never charged for the allegations for which his brother was convicted, the SFO still wanted him to return to the UK to face trial. Nisar Afzal stressed that he would return to the UK to be prosecuted, once the SFO confirmed in writing that it had completed its investigations in the UK and Pakistan.
Nisar Afzal asked the SFO to investigate through the British High Commission and Pakistan High Commission, but the SFO didn’t do that.
Nisar Afzal’s lawyers argued that if Nisar assisted his own evidence then the SFO would not accept it as genuine. On the other hand, the NCA didn’t actively gather evidence. The lawyers argued that it was unjust that the matter was not being investigated fairly. Evidence that was capable of exonerating Nisar Afzal, was not being obtained.
The lawyers argued with the SFO in legal correspondence that the actions being taken by the SFO, including seizure of assets, were tantamount to “abuse of process
The Tale of Saghir Afzal
Nisar Afzal’s brother Saghir Afzal was jailed for 10 years in 2011. As mentioned before, this was around the time Nisar Afzal was kidnapped in Pakistan. Saghir’s lawyers told the Court of Appeal that Saghir was never involved in any criminal act but pleaded guilty under extreme duress.
According to a letter by Nisar Afzal’s lawyers to the SFO: “At the time of the appeal hearing, no enquiries were made by the SFO or the Appeal authorities or the Pakistan authorities. He believes that this meant that there was vital information that may have assisted in submissions being made by Saghir Afzal in being presented to the court.”
Eventual Exoneration
Throughout the 15-year investigation, Nisar Afzal disputed the criminal case against him. He stressed that he was a victim of abuse of power. He said he didn’t commit any fraud or criminal act and that the SFO had failed to properly investigate one Abdul Ajram who, he said, was the one involved in criminal wrongdoing.
In the meantime, Nisar Afzal’s assets remained frozen through a confiscation order by the Westminster Magistrates’ Court.
After a 15 years of litigation, the SFO informed the court that it has closed the cases and investigations against Nisar Afzal due to lack of evidence. They further requested to the court that his assets should be returned to him. It is understood that Nisar Afzal plans to launch a series of legal actions.