An 'arrogant' businessman has been jailed for 'flagrantly' flouting a disqualification order and hastily transferring £3 million weeks before his assets were set to be liquidated. Tariq Sarwar, 59, and Christopher Francis, 40, were sentenced today (June 12) at Manchester Crown Court for their roles in the scheme, which saw large sums moved to Francis' company before being filtered back to Sarwar through family-linked firms.
The Disqualification Order and Violations
Sarwar, of Gore Lane, Alderley Edge, was subject to a Director Disqualification Order from 2013, banning him from acting as a company director or being involved in management. However, he violated this order the same year by setting up two property management companies in his wife Zarka's name: A Property Management and Willowloch. Prosecution barrister Laura Kenyon told the court that Sarwar made his wife and son, Mohammed Adil (then recently turned 18), directors and sole shareholders, and had Zarka sign and personally guarantee high-value loans using the businesses and properties as collateral.
One bank became aware of the disqualification order but was assured that Sarwar and his wife were 'estranged' and that he was not involved. 'He was running the day-to-day business, attending meetings, arranging insurance, dropping off paperwork,' Ms Kenyon said. 'He persistently and cynically used his wife and son as a front for these activities.'
Property Purchases and Debt Accumulation
The scheme included the purchase of Langley Mill Business Park in Salford for £1.5 million in 2014, financed with a loan, and the old police station on Lee Street in Stockport, bought for £630,000 with a £600,000 mortgage. Further loans and refinancing followed, including a £945,000 loan in January 2019 secured against assets of TNS Properties, another company where Zarka was sole director.
By this time, Sarwar's companies owed substantial debts to creditors, including £134,000 to HMRC, which began a winding-up petition in March 2018. Three months later, Langley Mill Business Park was sold for £5.1 million. Most creditors were paid off, except HMRC and a business partner. Within nine days of the sale, Sarwar instructed solicitors to transfer over £3 million to food and drink wholesaler KYCA, so that 'there were no assets left' by the time winding-up completed in July.
Money Laundering and Investigation
Christopher Francis, of Peacock Lane, Aylesbury, sole director of KYCA, was instructed by Sarwar to make significant transfers to six other companies, including around £645,000 to firms 'clearly linked' to the Sarwar family, such as TNS Properties and NEL Holdings. A further £748,980 passed through other companies before returning to Sarwar's family business, according to the Insolvency Service.
At interview, Sarwar denied acting as director and claimed to have been acting under instruction. In 2021, Francis was disqualified as a director for six years after failing to provide accounting records. 'Two days before he was due to have an interview with HMRC, he reported his vehicle as stolen,' Ms Kenyon said. 'It was later found burnt out, a highly convenient fire in which all his account records were lost.'
Legal Proceedings and Sentencing
Legal proceedings began, and in January 2023 both pleaded not guilty. Sarwar later changed his plea to guilty for one count of fraud anticipating winding-up and two counts of acting in contravention of a disqualification order. Francis pleaded guilty to one count of money laundering on the fourth day of his trial.
Mitigating, barrister Thomas Schofield KC said Francis 'had not been aware' of the winding-up petition and 'didn't know' the money was criminal. 'He has a wife and four children and expresses bitter remorse at his offending,' his lawyer said. 'He is employed and wishes to start contributing to society again. He deserves to be punished but in the community.'
Andrew Horsell, representing Sarwar, said he had 'dragged himself up by his bootstraps and made something of himself' to support his family, including his wife with health issues. 'He is somewhat of a precarious position with debts, and could lose his family home,' Mr Horsell said. 'I submit that public humiliation of unpaid work would be enough. It is difficult to imagine a further fall from grace.'
However, presiding judge Peter Horgan rejected this, jailing Sarwar for four years for both offences, of which he is expected to serve 40 percent. 'You were a very experienced and successful businessman and knew exactly what you should not be doing,' he told Sarwar, who was casually dressed in a black hoodie. 'These were sophisticated arrangements which you then took active steps to distance yourself from. You demonstrated a real arrogance, believing you could do whatever you wanted and choosing to ignore the order, not following rules or listening to advice.'
Sarwar gave no reaction as he was jailed and made no remarks to family and associates in the public gallery as he went with the dock officer. Judge Horgan then handed Francis a 25-month sentence, suspended for two years, and 250 hours of unpaid work. 'This sentence should hang over your head for that time,' the judge told him. 'Money laundering is a serious part of criminal activity. If you commit any offence in that time you will be back in front of me, do you understand?' 'Yes, sir' was the reply.
