Bradford wholesalers believe they have been targeted by a gang carrying out a food racket which is thought to have conned businesses across the country out of hundreds of thousands of pounds.

And the fraud might have led to “unsafe” food being distributed to shops and restaurants, Food Standard Agency officials have warned.

A joint investigation by fraud squad detectives and the FSA has uncovered the scam, which allegedly involves the suspected fraudsters passing themselves off as legitimate food wholesalers who targeted bona fide businesses selling meat, seafood, fruit and vegetables.

Police say the fraudsters acquire official letterheads of legitimate wholesalers and change the telephone, fax and e-mail details, before contacting genuine food suppliers.

The suppliers, unaware of the scam and believing they are dealing with established wholesalers, then agree to supply the food.

But, before the delivery is made, the fraudsters switch the location – usually to the roadside or a car park – make off with the food and sell it elsewhere.

Haroon Pandar, managing director of Tri-Imp Ltd wholesalers, based at St James’s Street Market, Bradford, revealed the gang might have conned up to £600,000 from businesses across Britain by using his company’s name.

He said: “They ring around all kinds of places, anyone they can get their hands on. They say they are ringing from our company and sending out faxes with our name on and trying to get away with buying things.

“Just today, I have had three companies ringing me and I understand the police have raided some premises and found a bunch of forged letterheads.

“It worries me like nobody’s business because I have built up a good reputation since 1973. We are a legitimate company – we trade all over Europe and half-way around the world.

“Nowadays, the climate is such that if people put in a bad word about you, you are really in trouble, so I really don’t need this.”

Donald Grimshaw, secretary of the Bradford St James’s Tenants Association, said he had been alerted by a national body, the Fresh Produce Consortium, to the tactics being used to defraud traders.

He said: “They tried it once and it worked so they have tried to work it with other wholesalers in Bradford.”

Detective Sergeant Peter McBay, of West Yorkshire Police’s Economic Crime Unit, which is leading the investigation into the fraud, said: “This fraudulent activity has cost a number of legitimate food companies many thousands of pounds and has also raised questions about the safety of the food that is stolen from the delivery vehicles.

“Some of the food has cropped up for sale in locations around the country but we do not know how it has been stored in the meantime.”

He urged all food businesses to check who they were doing business with by calling them as well as running credit checks, and asking delivery drivers to call head office to check any switch in delivery locations.

The Food Standards Agency is now warning food companies to be on the alert over the risks of potentially unsafe produce. Colin Houston, deputy head of enforcement support division at the FSA, said: “If food is not stored or handled correctly it can become a breeding ground for germs and eating it could cause food poisoning.

“We would urge people to be on the lookout for food that might not appear to be fresh and is being sold very cheap.

“Remember if the offer looks too good to be true, it probably has a hidden catch. If you see anything that makes you concerned you should contact your local authority.”

Anyone with information about the alleged fraud should contact West Yorkshire Police on 0845 6060606.

* Two Bradford men are among seven men, aged between 19 and 44, who have been arrested on suspicion of conspiracy to defraud and money laundering. They and the others from Dewsbury, Wakefield and Brighton, have been released on police bail pending further inquiries.

e-mail: marc.meneaud @telegraphandargus.co.uk