Five men jailed for complex mobile phone fraud, running from businesses in Skegness

Five men have been jailed for their parts in a sophisticated mobile phone fraud, which cost network providers over £1.5 million and scammed victims with the promise of a mobile phone upgrade they never received.

As part of the scam, a fraudster posing as a mobile network provider contacts a victim with an attractive phone upgrade offer. 

After obtaining the victim’s personal and banking details, the fraudster places an order with the genuine network provider for a more expensive handset using the victim’s account information, and sends them a different device to what they ordered.

When the victim receives the wrong phone, the fraudster either contacts them or persuades them to call a fake customer service number. The victim is then instructed to return the device to a UK address controlled by the fraudsters, under the false promise that the correct replacement phone will be sent. 

The returned handset is diverted to a mule address, and the victim never receives the replacement device.

In August 2025, the Proactive Economic Crime Team (PECT) in the East Midlands Special Operations Unit executed a number of search warrants at business and residential locations in Skegness, Louth and Birmingham.

Two of the shops were identified as the top two addresses in the UK where victims had sent the fraudulent returned mobiles phones to.

The enforcement was conducted as part of a national operation, Machinize, the ongoing NCA-coordinated project to tackle money laundering and criminal use of cash-intensive high street businesses.

The four men who ran the Skegness shops and a Money Service Bureau in Birmingham - and who were originally from Pakistan - were all arrested.

The PECT investigation uncovered the men had handled approximately 1,635 devices, with an estimated loss to network providers of £1,635,000, and also used their criminal businesses to conduct other significant money laundering activity.   

The men were moving vast volumes of cash deposits via money mule accounts, then out to Pakistan. 

Yasir Shahzad, 34, Ghulam Dastgeer, 34, Ahsan Sohail, 30, all of Sunningdale Drive, Skegness, along with Muhammed Javed, 25, of North Holme Road, Louth, were all charged with offences under the Proceeds of Crime Act 2022.

After an eight-week trial, on 26 June 2026 the jury returned verdicts against all defendants, finding them guilty of acquiring criminal property, and two counts of converting criminal property. 

On Wednesday 5 August 2026 at Lincoln Crown Court, a fifth man, Faraz Sohail, 27 (originally from Pakistan), also of Sunningdale Drive, Skegness, pleaded guilty to one count of acquiring criminal property and a second count of converting criminal property.

They were all remanded into custody until sentencing on Friday 18 September, where they once again appeared at Lincoln Crown Court and were jailed for a combined total of 22 years and one month.

Senior Criminal Finance Manager, Graham Prince, who oversees the team leading the investigation, said: "I am pleased the men have received such lengthy sentences, reflecting both the seriousness of their offending and the sophisticated nature of the fraud and money laundering operation they were running.

"I’d like to take this opportunity to remind people that if an offer seems too good to be true, it probably is.

"If you are considering buying a new mobile phone or upgrading your current device, always ensure you do so through a trusted source and follow these simple precautions:

• Upgrade directly through your network provider, or another legitimate provider if you are switching networks.
  • Never share one-time verification codes sent by your mobile provider.
  • Enable account security features and PIN protection wherever possible.
  • Check your mobile account regularly for any unexpected upgrades, purchases or orders.
  • Contact your provider immediately if you receive notifications about changes you did not request.

“We will now be seeking a confiscation order of £1,786,460.00 against the offenders to recover any assets or profits obtained through their criminal activities.

“I want to send a clear message to anyone involved in this type of criminal behaviour: we will use every power available to strip criminals of assets gained through crime.

“Working in partnership with regional police forces, the East Midlands Special Operations Unit (EMSOU) remains committed to keeping our communities safe and disrupting organised criminality.

“I would encourage anyone with information about businesses or individuals involved in fraud or money laundering to contact their local police force or Crimestoppers on 0800 555 111. Information can be provided anonymously and could play a vital role in tackling serious and organised crime."