A DISGRACED jeweller who dodged £1.25m tax bill by fraudulently selling Rolexes and other luxury watches has been jailed.

Darren Ray forged important documents at a South Coast jewellers so he could avoid paying the full tax bill and channel the cash into funding a “luxury lifestyle”, a court heard.

Now he is behind bars for three years after being sentenced for fraud.

A court heard Reay had recorded high end Rolexes, Cartiers and Breitlings watches as low value ‘precision instruments’ while traded online via eBay as Darren Reay Watches and also from Wight’s Watches in Cowes, Isle of Wight.

He had fraudulently passed the watches off to be worth $50 - enabling him to evade VAT of £1,252,948.20 and get away with paying import VAT of just £7,805 during a four-year period between March last year and March 2011, it was heard.

He was able to use the money to fund a lavish lifestyle of luxury properties, cars and designer watches, the court heard.

But his dishonest dealings were uncovered as part of a major investigation by HM Revenue and Customs (HMRC), it was heard.

They laid bare the extent of the scam after business records, including diaries, invoices, and shipping and courier documents, were examined as part of an HMRC compliance visit to Wight’s Watches in March 2014.

Documents showed insurance of $25,000 was taken out on shipments with declared import values of between $50 and $100.

Investigators revealed that over 520 packages had been imported from one retailer in New Jersey, United States, with £6.3 million being paid out by money transfer in the same period.

Darren Reay left the Isle of Wight in June 2014, but continued trading online through a business registered in Barnet, Greater London, while living in Houghton-le-Spring, County Durham.

Over 800 watches were seized during a search of Reay’s then-home in Chilton Moor, Houghton-le-Spring, in March 2015.

Reay had told investigators the watches were imported to order and he would receive commission.

But the 46-year-old of Grimoldby, Lincolnshire, admitted the charges.

He was sentenced yesterday at Teesside Crown Court where his Honour Judge Armstrong ordered that the watches be sold and the proceeds paid to HMRC.

Colin Spinks, Assistant Director, Fraud Investigation Service, HMRC, said afterwards: “Reay blatantly lied to steal £1.25m from the UK public. His crimes were driven by pure greed to fund a luxury lifestyle he couldn’t afford.

“We will ensure honest, hardworking businesses do not suffer from being undercut by fraudsters like Reay.

“HMRC will continue to pursue those criminals who attack the tax system.

Anyone with information about suspected VAT fraud should contact our 24-hour Hotline on 0800 59 5000 and help us stamp it out.”