A network of textile manufacturers in the city, including firms that have supplied to Boohoo, are facing accusations of money laundering and VAT fraud.According to the BBC, Boohoo has cut ties with the clothing supplier after it emerged that a director was involved in illegal activities, with the retail group saying it would never knowingly conduct business with anyone outside the law.
A civil lawsuit involving a dispute between the heads of two clothing manufacturers first brought the issue to light. The row involves Leicester-based company director Rostum Nagra, which has been accused of procuring false invoices and using ‘shell’ companies that pretended to be garment suppliers.The case identified 14 manufacturers that “may have been involved in laundering cash”, including T…