A businessman defrauded Royal Mail out of £11,000 after failing to pay the correct postage on parcels he was sending to customers.

Mohammed Shafique, of Holly Road in Thornton Lodge, appeared before Kirklees magistrates.

He now faces sentencing by a crown court judge after pleading guilty to obtaining services dishonestly.

Shafique, 23, is the sole director of RS Clothing Ltd.

The small, web-based business trades on eBay and sells clothing by mail order to customers.

Charles Watson, prosecuting on behalf of Royal Mail, said that Shafique used the service to distribute his goods to buyers.

He told magistrates that Royal Mail offers various services to businesses.

These include opening an account where they can use Printed Postage Impressions (PPIs) to send large quantities of mail.

This is a pre-printed alternative to postage stamps.

To use this service Shafique was required to enter details online such as the number and weight of the mail sent out and his company would be invoiced accordingly.

However, last year the company was investigated by the Royal Mail’s Revenue Protection Team.

Mr Watson said: “They noticed various anomalies and visited twice to give advice as to how to use the process correctly.

“The problems continued to such an extent that a schedule was produced by the team detailing the mail submitted.

“Between October 2013 and January this year he dishonestly avoided payment with a £10,000 -£11,000 loss to Royal Mail.”

Magistrates committed the case to Leeds Crown Court for sentencing.

Mr Watson told magistrates that he was also asking for a hearing under the Proceeds of Crime Act to confiscate assets equal to the amount Shafique owes the company.

His solicitor Simon Broad said: “It’s disappointing that the Proceeds of Crime Act is being pursued.

“He has already paid back £3,000 and is intending to pay back the whole sum.

“It is completely unnecessary in this case. He’s held up his hands and admitted the offence.”

Shafique will be sentenced at the crown court on June 24.

He was granted unconditional bail.

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