‘ Reformed Islamic extremist’ is accused of £ 1m iPhone fraud
A REFORMED extremist who later became a government adviser is being investigated by anti- terror police over an alleged £ 1.2million internet fraud.
Hassan Butt is suspected of duping eBay customers out of money after offering iPhones and iPads for sale online.
Detectives from Scotland Yard’s counter- terrorism com - mand are probing claims that the devices were never delivered.
Police would not comment on reports that the fraud was allegedly set up to fund terrorism.
Mr Butt, 35, was arrested during a raid at his home in Greater Manchester. A second man was detained in Bury.
They were both released on police bail to a date this month pending further inquiries.
Neither has been charged with any offence and it is understood they strenuously deny the allegations. Mr Butt caused outrage after the 9/ 11 attacks in the US when he claimed the atrocities had “served the will of Allah”.
He later boasted that he had recruited hundreds of British jihadists to fi ght for the Taliban in Afghanistan. He was arrested several times but never charged.
However Mr Butt renounced violence after the 7/ 7 attacks on London in 2005 and urged British Muslims to condemn the twisted ideology which tempts young men to become jihadists.
He later advised the Labour government on ways of combatting extremism.
Investigators for eBay reportedly launched an inquiry into the alleged fraud in 2014 when Mr Butt’s company began selling iPhones and iPads.
Customers complained that they had paid £ 300 or more for the devices but had never received them.
All have since had their money refunded by eBay.
A Scotland Yard spokesman said: “Offi cers from the Metropolitan Police’s counter- terrorism command, supported by colleagues from Greater Manchester Police, arrested two men in September 2015 on suspicion of conspiracy to defraud.
“The arrests are in relation to an investigation into an online auction fraud.”