A vast network of British Asian gang members linked to Abu Hamza and the 7/7 bombers infiltrated government agencies, defrauded taxpayers of billions of pounds, and funnelled tens of millions to Osama bin Laden and al-Qaeda over 20 years, an investigation claims to have found.

The report suggests that, through a complex series of tactics, including exploitation of illegal immigration, benefits fraud, VAT fraud, and mortgage fraud, the gang managed to steal an astonishing £8 billion.

These funds were allegedly used to provide lavish lifestyles for the gang’s members, including luxury cars and properties — but also helped bankroll Osama bin Laden’s notorious al-Qaeda network, claims a Sunday Times investigation.

It is believed that £80 million was sent to the jihadists to help them fund their radical Islamic terrorist activities, with a source claiming that “MI5 had information that the ultimate destination for some of the money was Osama bin Laden’s compound in Abbottabad.”

The report indicated that investigators had found “20 potential internal fraud cases including (gang) members in government agencies” in one company alone, and that “infiltration was widespread”.

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The level of infiltration may have run throughout Government, with an internal report by Her Majesty’s Revenue and Customs (HMRC) claiming that “There are numerous [gang] members involved in think tanks and business forums which bring them into contact with senior British politicians.”

“I myself have seen one member shoulder to shoulder with Tony Blair on at least two occasions following the war in Iraq,” the writer added — although the Sunday Times notes that there is “no suggestion that Blair was aware of the alleged crimes.”

It is claimed that “thousands” of pounds were donated to the then-governing Labour Party by the gang.

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The gang members are also believed to have associated with hate preacher Abu Hamza and Shehzad Tanweer, one of the 7/7 bombers.

Reports of suspicious activities and fraud were reportedly documented multiple times by HMRC, with at least four HMRC officers imploring their bosses to take action.

However the issues were allegedly not pursued, “due to their complicated nature and a lack of resources”.

One investigator was said to have been ready to meet with the security services but prevented from doing so by his superiors, as HMRC didn’t want to breach the tax confidentiality of the terror suspects, and the reports suggest it was not until after the 7/7 bombings that senior HMRC officials decided to take action.

HMRC insisted it “can, has always, and does” pass information to security agencies, regardless of any confidentiality issues, in comments to MailOnline.

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