Jail over brasserie woman's bounced cheques

A RESTAURATEUR who left scores of businesses out of pocket by failing to pay bills totalling £50,000 has been jailed for 18 months.

Karen Mehdizadeh, 50, bounced more than 100 cheques while running a restaurant in Beverley and even failed to pay her teenage babysitter.

She obtained a range of goods and services she knew she could not afford, including the lease of an almost-new BMW, and wrote a fictitious reference so she could rent a large detached house.

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After the hearing, Janette Elliott, whose company Elliott Hygiene Ltd is still owed 2,000, said: "I'm pleased, having lived with her lies. You don't know whether her emotions were genuine or just another charade."

Hull Crown Court heard yesterday that Mehdizadeh's fraudulent activities were so widespread, police who investigated her could only speak to a sample of her creditors, accounting for nearly 35,000 of the debt.

She and her husband – who has since left the country – took over Mason's Brasserie in North Bar Within, Beverley, in October 2008, renaming it Bentley's Bar and Grill before changing the name to Piccolos in January 2009.

Resource Holdings refurbished the restaurant in October 2008 at a cost of 9,729, and is still owed 5,278. Mehdizadeh racked up debts of 13,994 with a meat and poultry supplier, and nearly 3,000 with a Seaton-based advertising agency. She also failed to pay her 17-year-old babysitter, who was owed 270 for 100 hours.

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She owed 8,625 in rent arrears to the restaurant's landlords, Beverley Building Society, and was forced to abandon her home, a rented farmhouse in Tickton, when arrears reached 4,700.

She solved this problem by writing a herself a reference from a fictitious woman, which said she earned 28,000 a year plus bonuses. This allowed her to rent a detached property in the East Riding village of Welton at a cost of 1,000 a month.

When she was arrested she refused to answer questions but read from a prepared statement.

Andrew Wilson, prosecuting, said: "She said there was always a risk in business but she was trying to keep her head above water while losing money hand over fist."

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In mitigation, her barrister Patrick Palmer said after the restaurant's failure, Mehdizadeh had worked as a manager in a similar business and "kept at it" despite it being a "comedown" from her previous role.

He said the mother-of-two, who wept in court, was also concerned about who would look after her severely disabled daughter if she was sent to prison.

Mehdizadeh admitted nine counts of fraud and dishonesty at earlier hearings, and was also barred from holding any office in a company for five years. She had previously served 180 hours of community service after being convicted of four counts of fraud in July 2000.

Judge Roger Thorn QC told Mehdizadeh: "Your activity has been persistent and frankly disgraceful. You raised money for a lifestyle which was way beyond your means."

Det Sgt Dean Minter said: "Her actions have affected a lot of local businesses, some of whom now face bankruptcy as a direct result of her fraudulent activities."