A BRADFORD lawyer jointly accused of a £600,000 fraud claimed the Legal Aid Agency (LAA) held a vendetta against his firm, a court has been told.

Mohammed Ayub, the managing partner of Chambers Solicitors, in Gratton Road, in Bradford city centre, was arrested by police and interviewed under caution about the fraud allegations.

Prosecutors say he and two other defendants also on trial created a “sham company” to illegally claim disbursements or expenses from the LAA for using interpreters.

In a transcript of a police interview read to a crown court jury yesterday, Ayub, 55, denied inflating expense claims or sending false invoices to the LAA.

He said Chambers had been asked to produce files for a LAA audit in early 2012 and “there were issues” over the amount of travel expenses claimed for interpreters connected with the firm’s immigration and asylum contract work.

Ayub said after the audit the LAA tried to recoup about £118,000 from Chambers and they were told if they paid up they would receive a five or ten per cent discount on the bill.

“We disagreed and challenged it,” he told interviewer Detective Constable Matthew Tunney and a colleague.

“I didn’t believe we had done anything wrong.”

His firm’s appeal went to an external arbitrator and the outstanding amount was reduced to “£50,000 or £60,000” according to Ayub.

The LAA challenged this but following an independent review the bill was further chopped to “£1,500 or £2,000 if that”, said the lawyer.

Ayub added: “I think that left a sour taste.

“Ever since then they have been hounding me.”

He said the travel expenses Chambers set for using interpreters were not “out of sync” with other local agencies and one, which was used by the Government itself, charged higher rates.

Ayub said he dealt with all payments and billing at Chambers and most of their immigration and asylum work was paid for by the LAA through a contract the firm had held since October 2010.

When asked if he was aware of any LAA rules covering disbursements for interpreters he replied: “I can’t tell you specifically, it is very complicated.”

He said the agency kept reiterating that all rates should be “reasonable”.

But he added: “They don’t even know what reasonable means.”

Ayub, of Aireville Drive, Shipley, his brother Mohammed Riaz, 48, of Southfield Square, Manningham, Bradford, and Chambers’ immigration supervisor, Neil Frew, 48, of Hoyle Court Drive, Baildon all deny conspiracy to defraud.

They are currently on trial at Sheffield Crown Court.

The hearing continues.

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