A gang who described over 20 million smuggled cigarettes as baby’s toys on shipping documents have been jailed after a covert surveillance operation caught them. Seven men were arrested after some of them were seen unloading over 10 million illicit cigarettes at a warehouse in Upminster after they had been smuggled into the UK from Dubai through the port of Felixstowe. The total duty evaded is estimated as £3.3m.
Paul Barton, Assistant Director of Criminal Investigation for HMRC, said after the court case: “If these criminals had not been stopped they would have flooded local markets with not only the 20 million illicit cigarettes we seized but would have gone on to smuggle in many more. HMRC is determined to eradicate this form of criminality and raise awareness of the devastating effect on our communities, including legitimate retailers having to compete with black market goods. Tobacco smuggling costs the country around £2 billion in lost revenue each year – money that could be funding vital public services.”
He added: “We are urging the public to be vigilant. Cheap tobacco products can often seem like an attractive offer to people lured into purchasing them at what seem like bargain prices. However, the truth is these sales are unlicensed and unregulated. And those involved are not concerned if they are selling to children and underage young people.”
HMRC and the Serious Organised Crime Agency (SOCA) monitored two large freight containers shipped from Dubai, via Hong Kong which arrived at the Port of Felixstowe. The documents described the containers’ contents as 1,020 cartons of baby toys; but instead each container was crammed full with over 10 million cigarettes.
A SOCA spokesman commented: “Criminals are inventive and will use all manner of concealments to attempt to smuggle illegal cargo into the UK. This operation is an excellent example of how SOCA and HMRC working together can tackle such smuggling, irrespective of the commodity involved.”
Paul O’Meara, Mark Sadgrove and Matthew Neale were arrested after a warehouse in Upminster was raided; they were in the process of unloading boxes of cigarettes from a container into the back of a vehicle. The container had been watched at Felixstowe earlier and had been kept under surveillance by HMRC officers. Wayne Stock who had left the premises earlier was arrested a short time later in Upminster.
Investigators unravelling the fraud found that O’Meara played a pivotal role in the organisation. Computer records found at his home revealed plans detailing the whole illegal operation including photographs of the container packed with cigarettes leaving Dubai. Forensic evidence found amongst the records linked Robert Doran and Patrick Gray to O’Meara and the fraud. O’Meara organised the ordering and shipping of the containers including creating the documents for moving the goods through Customs. He hijacked the details of legitimate businesses and set up a front company using an alias to handle the illegal importations into the UK.
When officers searched O’Meara’s van they found a smuggling kit, which included sample packets of cigarettes, a glossy promotion brochure and some newspaper articles about smuggled cigarettes.
Patrick Gray and Robert Doran supplied the finance and were also involved in the purchase, packaging and shipment of the cigarettes. On 12 April 2010, Doran was arrested as he entered the UK at Heathrow Airport. Gray was arrested on June 8, 2010 at his home address in Enfield.
Mark Sadgrove provided legitimate VAT numbers from reputable toy manufacturers and used these without their knowledge to clear the containers through Customs control at Felixstowe. Cleland was the contracts manager of Brightcast Scaffolding, a business owned by Gray. He was arrested at his office on 8 June 2010. When Cleland’s home address in Hornchurch was searched officers found £29,000 cash, in £1,000 bundles in a safe in his garage. The men were all charged with conspiracy to evade excise duty chargeable on the importation of cigarettes contrary to section 1(1) of the Criminal Law Act 1977. O’Meara, Doran and Gray pleaded guilty to the charge. The four remaining men were found guilty at the end of a six week trial earlier this month at Ipswich Crown Court. Thel seven men were sentenced at Ipswich Crown Court on Friday 24 February 2012. They are:
Paul O’Meara, (25/08/1963), address Sackers Green House, Sackers Green, Newton, Sudbury, Suffolk, CO10 0WS was jailed for four and a half years. He used the alias Paul Donnelly and a trade name of VLG Logistic Services to facilitate the fraud. Robert Doran, (24/12/1964), address Apt 3102, La Reve Building, Dubai Marina, UAE, was jailed for four and a half years. He was the CEO of Crayford International in Dubai and the owner of English company Crayford Creek Properties Limited used to provide funding to Paul O’Meara totalling £75,000. Patrick Gray, (19/07/1959), address 143b Bengeo Street, Hertford, SG14 3EY (formerly of Brayside Farm, Beggars Hollow, Enfield, Hertfordshire), was jailed for four and a half years. He ran Brightcast Scaffolding on the Brownes Commercial Estate, 15 Edison Road, Enfield EN3. Martin Cleland, (16/01/1967), address: 176 Osborne Road, Hornchurch, Essex, RM11 1HL was jailed for four and a half years. Mark Sadgrove, (17/11/1973), recruitment consultant address 14 Maybury Close, Loughton, Essex, IG10 3PF was jailed for two and a half years. Wayne Stock, (16/05/1974), address 86 West Lawn, Chelmsford, Essex, CM2 8SL was jailed for two years. Matthew Neale, (05/12/1968), address 52 Wedgewood Drive, Harlow, Essex, CM17 9PY was jailed for two years. The warehouses addresses: 12 Addison Road on the Chilton Industrial Estate, Sudbury and The Old Nursery, 57 St Mary’s Lane, Upminster.
