A Vietnamese man with business interests turning over millions of pounds has been jailed for benefit and tax fraud totalling more than £300,000.

Michael Tong Van Tran, of Hartley Road, Croydon, even bought a new Mercedes SL350 sports car worth more than £60,000 a month prior to his arrest despite claiming benefits.

Tran, 69, first came to England in 1975 as a refugee escaping the communist regime in his home country.

He became a successful and respected business and community leader in the borough but failed to declare his business interests to the Inland Revenue.

He is thought to have an interest in more than 60 business ventures across the south east, consisting mainly of nail bars but also restaurants, supermarkets and the import and export of Vietnamese produce.

Tran was living in rented accommodation in Croydon, claiming pension credits and housing and council tax benefits since 1998.

He was arrested on suspicion of benefit and tax offences by Croydon Police, working with officers from the Department for Works and Pensions, Croydon Council, HM Revenue and Customs and Immigration.

Documents seized from an office in his home in May 2005 showed more than £3million in cash had gone into Tran's bank accounts while he was on benefits.

In June 2006, he was charged with nine counts under the Social Security Administration Act for benefits offences totalling £64,565 to which he later pleaded guilty.

He was also charged with eight counts under common law for tax offences totalling nearly £500,000.

He at first disputed this but later conceded to owning four nail bars and being responsible for a tax loss of £250,000.

He pleaded guilty a total of 17 offences concerning tax and benefit fraud at Croydon Crown Court today and was sentenced to 18 months imprisonment.

Sentencing Tran, Judge Nicholas Ainsley said the only sentence he could pass was immediate imprisonment because of the level of fraud involved.

Coun Gavin Barwell, of Croydon Council, said: "Benefits are designed to help out those in genuine need but individuals like Mr Tran blatantly abuse the system.

"He was a prominent and successful local businessman yet he still had the audacity to continue claiming benefits."