The owner of a Manchester city centre hotel has been jailed after claiming thousands of pounds from the government’s Eat Out To Help Out scheme – despite not serving food. Shahid Naseeb Ahmed, owner of Merchants Hotel on Back Piccadilly, also claimed for two businesses, despite only owning one, in what was described as a ‘systematic, deliberate and planned’ fraud.
The 42-year-old was today jailed for three years and four months after pleading guilty to 25 counts of fraud. Prosecutors said Ahmed tried to claim around £138,840 from Eat Out To Help Out and the Coronavirus Job Retention Scheme.
An investigation was launched when HM Revenue and Customs became suspicious of the claims. It was found that the only ‘catering’ offered by Merchants Hotel was a kettle in the bedrooms.
But between April 2020 and August 2021 Ahmed claimed for thousands of diners. He also doubled up on the scam by saying he ran two separate hotels – Merchants Hotel Ltd and Merchants MCR – when in fact there was only one business.
Under the CJRS Ahmed claimed for full-time staff who were part-time and said they were paid more than they were. He also claimed the hotel was closed when it had reopened for part of the period covered by the claims.
Ahmed, whose address on Companies House is listed as Manchester Road, Rochdale, was arrested on October 20, 2021 and taken to Bury police station.
He admitted overclaiming on the Job Retention Scheme and said his claims on the Eat Out to Help Scheme were ‘completely fabricated’. Maqsood Khan, of CPS Mersey Cheshire’s Fraud Unit, said: “Shahid Ahmed cynically took advantage of two government schemes designed to help businesses survive a national crisis.
“He submitted fraudulent claim after fraudulent claim over many months – his fraud was systematic, deliberate and planned. He tried several ways to get as much money as he could.
“There are lots of demands on the public purse and these schemes were designed to help genuine claimants. People like Shahid Ahmed undermine the system and take money that is badly needed elsewhere.”
William Turner is a seasoned U.K. correspondent with a deep understanding of domestic affairs. With a passion for British politics and culture, he provides insightful analysis and comprehensive coverage of events within the United Kingdom.
