The mastermind behind a lucrative fake designer clothing scam bought a historic £4 million house in Hampstead. 

Arif Patel and 23 members of his criminal empire have been convicted of fraud worth some £150 million. 

Patel, 55, used the proceeds to buy property across Preston and London – including a five-storey terrace on Pilgrim’s Lane in Hampstead. 

The house has been resold since Patel purchased it and he no longer lives there.

The property once belonged to Edwardian painter Sir William Nicholson and has a blue plaque signifying that he lived there between 1904 and 1906. 

The neighbourhood is one of the most exclusive in the entire country, with Harry Styles and Benedict Cumberbatch living nearby. 

Former residents of Pilgrim’s Lane also include ex-Labour leader Michael Foot and cellist Jaqueline du Pré. 

Patel and his gang tried to steal £97 million through VAT repayment claims on false exports of textiles and mobile phones. 

They also imported and sold fake designer clothes that would have been worth at least £50 million if they were genuine. 

On April 11 Patel was found guilty of false accounting, conspiracy to cheat the public revenue, the onward sale of counterfeit clothing and money laundering. 

He was convicted in his absence as he remained in Dubai throughout his trial, after he travelled there in July 2011 and never returned. 

Mohamed Jaffar Ali, 58, from Dubai, was also found guilty of conspiracy to cheat the Revenue and money laundering. 

HMRC has recovered more than £78 million of the gang’s UK assets and signalled their intention to recover more proceeds of their crimes. 

Richard Las, director of the Fraud Investigation Service at HMRC, said: “These guilty verdicts close a significant chapter in one of the biggest tax fraud cases ever investigated by HMRC. 

“For more than a decade HMRC and our partners have worked tirelessly and together to bring this gang to justice. 

“Arif Patel lived a lavish lifestyle at the expense of the law-abiding majority. Tax crime is not victimless and fraudsters like this pair steal the money that funds the NHS and other vital public services we all rely on. 

“Our work doesn’t stop here. We have more than £78 million of the gang’s UK assets restrained and have begun the process to recover all those proceeds of crime.”