Probe into links to modern slavery and money laundering at Lancaster takeaway

A takeaway in Lancaster that was the focus of an investigation into links with modern slavery and money laundering could lose its licence.

A review of the licence of the Flames takeaway is being carried out by Lancaster City Council tomorrow (Tuesday September 10), amid reports of links to illegal migrant workers from eastern Europe, accusations of migrant worker abuse, and other breaches.

The establishment of Rosemary Lane is currently closed, but was one of a number visited by officials as part of a wider investigation into a number of premises.

The council licensing report says: “Home Office immigration enforcement service officers are satisfied that activities at Flames takeaway over recent years involving illegal workers and practices are clearly prejudicial to the prevention of immigration crime including illegal working.

“The premises was visited five times between October 2022 and May 2024 by Home Office officers where illegal working has been a constant theme, with six illegal workers encountered. On the most recent visit, enforcement officers served a closure notice.

“On each occasion it was established that the incumbent premises licence holder, Rudolf Collaku, of West Street, was the liable party.

‘’Accordingly, civil penalties totalling £110,000 have been issued to the business on three separate occasions, all of which currently remain unpaid.”

“It is considered the licence holder, Rudolf Collaku, has deliberately overlooked the rules and laws to prevent crime and disorder. Furthermore, Home Office immigration officers believe the use of illegal labour in this country provides an unfair competitive edge and deprives the UK economy of tax revenue.

“Illegal workers are often paid below the minimum wage, itself an offence, and National Insurance payments are not paid. The main draw for illegal immigration is the ability to work outside of the law.

‘’These illegal workers can find themselves toiling in poor working conditions for long hours and little remuneration.”

A report submitted to the council by PC Andrew Taylor is recommending the Flames licence is fully revoked.

Their report lists numerous occasions in recent years where police has visited the premises, or they had received complaints.

One stated: “In 2019, a Bulgarian female contacted police stating she had travelled to Lancashire from her home country and was paid for a sham marriage to a male who was the cousin of Rudolf Collaku.

‘’Collaku then gave the female a job at Flames where she has been subjected to labour exploitation. She states she has been working at Flames for five months as a cook and a cleaner. She states Collaku has retained her passport to prevent her returning to Bulgaria.

“A warrant was executed at the premises under the Modern Slavery Act. This followed intelligence the premises was linked to employing illegal immigrants there and other linked premises. PC Andrew Taylor took part.

“Over £40,000 was seized from the safe by officers. Of note, the safe was crammed with money, over-flowing with cash and flooded with water. At least half of the cash was soaking and some was rotten. Other items seized included paperwork, mobile phone devices and laptops. A full investigation was carried out by CID but unfortunately the witnesses declined to co-operate due to fear of repercussions.”

Another police log report said:  “In June 2022, police received a report of modern slavery from a Bulgarian male who attended Lancaster Police Station’s front desk. He spoke very little English but asked for help. He said he had been working at Flames, they had been abusive and hit him and have his documents. He said he was scared and overwhelmed.

“The man had his suitcase with him and had run off or been thrown out. An interpreter stated he had been in the country since May and was invited to work at the shop. His documents were taken from him. He was told they would sort out a work visa and they had not. He asked for his documents back and was slapped.

“He has been making pizzas and was paid £200 in total but was promised more than this. He has been living at an unknown address with other Bulgarians who also work there. He has run away from the business.

“CID investigated, attended Flames and the address where the male had lived. It was established that the male alleged being slapped by Rudolf Collaku following a verbal argument.

‘’This was crimed but the male did not want to make a complaint and just wanted to go home to Bulgaria. No further action at this time. Information shared through partner agencies.”

The licensing review at Morecambe Town Hall starts at 10am on Tuesday, September 10.

UPDATE 10/9/24 - At the licensing review on Tuesday, a solicitor representing Flames said that allegations of money laundering and modern slavery at the takeaway were "not true".

Ben Williams said that Mr Collaku "doesn't agree with a lot of the allegations" in the council's and PC Taylor's report and that many of the more serious accusations had come about from "complaints and nothing more" saying "there are no convictions, not even any charges".

He also said he didn't accept the allegations of modern slavery, saying "complaints had been made through an interpreter and things could be lost".

Mr Williams said that with regards to the 2019 incident, the female's documentation had been found at her premises, and not his client's.

He also said that the male in the 2022 incident was a "disgruntled ex-employee".

Mr Williams also said: "There is absolutely no evidence to say that my client is laundering money" and that he "typically does bank every four weeks".

He said the money found in the safe was takings and were "to settle a tax debt" and Mr Collaku said the cash was wet because the floor had been mopped and the safe was not properly sealed.

Read more: Lancaster city centre takeaway boss asks for 'one last chance' as licence decision due - Beyond Radio