A BBC investigation has uncovered a Kurdish crime network facilitating illegal working by migrants in mini-marts across the UK, with undercover reporters revealing how asylum seekers are employed and the system evades authorities through ghost directors. This exposé highlights widespread illicit activities, including the sale of illegal cigarettes and vapes, costing the UK billions in lost revenue and raising concerns about immigration enforcement and high street decline.
Over several months, undercover Kurdish journalists posed as asylum seekers and documented how easy it was to take over and run shops, with promises of high profits from selling illegal goods. The network spans more than 100 businesses from Dundee to south Devon, linked to a few individuals acting as ghost directors on official paperwork at Companies House. These directors, such as Hadi Ahmad Ali and Ismaeel Farzanda, have dozens of companies listed but are not involved in day-to-day operations, charging fees to put their names on businesses and allowing illegal workers to operate under the radar.
In one instance, a shopkeeper in Crewe offered to sell his mini-mart for £18,000 to an undercover reporter, explaining that he paid a ghost director £250 monthly to handle paperwork and avoid scrutiny. He detailed how he hid illegal cigarettes in a “stash car” and tampered with electricity meters to avoid bills, demonstrating the brazen nature of the operations. The shop had been raided by Trading Standards, resulting only in a £200 fine, which is minimal compared to the potential profits from illicit sales.
The investigation also revealed sophisticated methods to conceal illegal activities, including hidden compartments built by Kurdish builders to fool sniffer dogs. One builder showcased a £6,000 system that dispensed cigarettes through a concealed vent, claiming it was “fine craftsmanship” guaranteed to evade detection. Such tactics underscore the network’s efforts to stay ahead of authorities, with shopkeepers often operating in plain sight on rundown high streets in deprived areas like Blackpool and Hull.
Illegal workers, many of them asylum seekers in legal limbo, reported working 14-hour days for as little as £4 per hour, with some stating they had not heard from the Home Office for months after interviews. One worker in Blackpool admitted giving false names to authorities during raids, highlighting the challenges in enforcement. The sale of illegal cigarettes for £4 per pack, compared to the legal price of £16, costs the UK an estimated £2.2 billion annually in lost tax revenue, according to HMRC.
Authorities have responded with increased raids, with Trading Standards sources confirming 17 shops linked to the ghost directors have been targeted since 2021. The Home Office has raised fines for illegal working to £60,000 per person and seized millions in unlicensed goods, with Home Secretary Shabana Mahmood vowing to investigate the BBC’s findings and emphasizing that illegal working fuels organised crime. However, penalties often pale in comparison to the profits, encouraging continued illicit activities.
The broader implications include strains on the UK’s asylum system and the decline of high streets, as these networks exploit gaps in immigration and business regulations. Financial crime experts note the red flags of organised criminality, with companies frequently dissolved and re-established to avoid scrutiny. The BBC’s investigation sheds light on the need for coordinated efforts between immigration, tax, and trading standards agencies to combat such networks effectively.
Moving forward, the exposure of this network may prompt tighter regulations and increased cross-agency cooperation to protect communities and ensure fair practices. The Home Office’s commitment to investigate could lead to more prosecutions, but addressing the root causes, such as asylum backlogs and economic disparities, remains crucial to preventing similar schemes from thriving in the future.