Finance Director Sentenced to Prison After Massive Company Fraud
A former finance director who embezzled approximately £1.1 million from his employer and spent £160,000 of that money on escorts has been jailed for contempt of court. Asif Khan, 47, from Newcastle, worked for North of England Coachworks, the northeast's largest vehicle bodyshop, until 2019 in a financial and managerial capacity.
Details of the Fraudulent Scheme
During a trial in 2024, the court heard that serious irregularities with cheque payments and money transfers were discovered, leading to Khan's resignation after questioning. Investigations revealed he had been using company cheques and transfers for personal expenses, resulting in a net loss of about £1.1 million to the company.
Of that amount, an estimated £160,000 was paid to named women, including approximately £56,000 to Gemma Massey and her company alone. Massey, described as a high-class escort and former Britain's 'best paid porn star', charged £1,000 per hour for her services.
Legal Proceedings and Settlement Attempt
In 2024, Khan accepted that he owed the company money 'in respect of the frauds and fraudulent breaches of trust' and agreed to a £500,000 payout to settle the civil claim against him. However, he has paid back only around £550 of that sum.
During the trial, Khan admitted his 'shame' after using company money to pay escorts but insisted his employers were aware of his actions and 'didn't care what I spent money on'. He claimed the name 'G Massey' on transactions indicated their knowledge.
Contempt of Court and Sentencing
The situation escalated when Khan pawned a £20,000 Rolex Daytona watch in May, violating a freezing order that prohibited him from 'dealing with' his assets. The money from the pawn loan was transferred to a previously undisclosed bank account and then to his wife's business for a property purchase.
High Court judge Mr Justice Jay sentenced Khan to six months' imprisonment for contempt, stating that 'only a custodial sentence is appropriate'. The judge rejected Khan's claim that he didn't realize pawning the watch constituted 'dealing with' it, noting Khan's financial sophistication.
Mr Justice Jay emphasized the seriousness of the breach, particularly as the loan monies were paid into an undisclosed account. He stated, 'I am far from convinced that he does fully appreciate the seriousness of the breach' and that he was 'duty bound to impose an immediate custodial sentence'.
Appeal and Final Details
The execution of the prison sentence has been postponed until April 17 to allow Khan time to lodge an appeal. The Rolex watch has since been redeemed and handed over to North of England Coachworks, who plan to sell it to recover some of their losses.
Representing the company, barrister Emma Read argued that Khan had made 'no real attempt to satisfy the debt' he owes. The case highlights significant financial misconduct and the legal consequences of violating court orders in fraud proceedings.
