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Fake vodka gang jailed

News Release issued by the COI News Distribution Service on 25 November 2011

Five men who masterminded a major counterfeit vodka manufacturing and bottling plant in Leicestershire, have today been sentenced to a total of 17 years and ten months. A sixth man will be sentenced on 5 December 2011.

The plot was uncovered in an unregulated and fire hazardous industrial unit by HM Revenue & Customs (HMRC) when they carried out raids in September 2009. They seized nine thousand bottles of fake vodka, branded as Glen’s, manufacturing equipment, bottles and counterfeit packaging – labels and cardboard boxes, at the remote industrial unit at Moscow Farm near Great Dalby, Leicestershire.

The court heard there was a complete lack of any fire safety measures in the unit posing a serious and life threatening hazard. The alcohol vapour alone could have triggered a major explosion if the lights had been switched on or a naked flame or cigarette had been lit.

Simon De Kayne, Assistant Director of Criminal Investigation for HMRC, said:

“This was a substantial production, bottling and distribution plant with the infrastructure to distribute large quantities of counterfeit Glen’s vodka throughout the country. But it was set up without any thought for the safety of those working there or in the area nearby.

“The gang were fully aware the counterfeit vodka they manufactured contained highly dangerous chemicals making it unfit for human consumption, but were interested only in making a profit at the expense of British taxpayers. The revenue loss to the Exchequer on this haul alone was £1.5 million.”

Upon sentencing His Honour Judge J Sampson said:
“This was fraud on an industrial scale. You set out to make as many bottles as humanly possible. If not discovered it would have gone on and the duty loss would have been unquantifiable.”

He added that there were five areas of concern: “The high loss to the taxpayer; the duping of the public; the danger to the public, particularly as bleach was added; the undermining of the genuine brand and danger to the workforce in the factory.”

He also asked for “the team and the investigators to be commended for all the hard work and hours of toil that went into this case.”

The bottles of vodka seized featured professionally printed labels, duty stamps and bottle tops – all of which were counterfeit. Analysis of a sample bottle showed raised levels of methanol. In high quantities methanol can pose health risks.

In addition over 25,000 litres of pure denatured alcohol (methylated spirits) was seized, enough to make around 100,000 bottles of vodka. Denatured alcohol is used as a solvent and contains hundreds of additives. It is coloured purple to distinguish it from drinkable alcohol and is not fit for human consumption. Bleach was used by the gang to remove the colouring to make it clear before diluting to the required strength.

Evidence showed that at least a further 165,000 bottles of fake vodka were manufactured at Moscow Farm during 2008 and 2009. They had been distributed to independent stores across the UK. HMRC officers had seized the same illicit vodka from shops in Salford, London and South Wales. Forensic analysis showed it was a positive match for the vodka seized at Moscow Farm.

Notes for editors

1. Photographs of the defendants are available on request - or can be viewed here: http://nds.coi.gov.uk/Content/Detail.aspx?ReleaseID=422242&NewsAreaID=2&ClientID=257 as well as moving footage and stills of the site, goods seized, aerial surveillance and a pictorial diagram of the organised crime gang and their roles. Summaries of expert witness statements on the fire and health hazards are also available.

2 All defendants were charged with Conspiracy to Cheat the Revenue.

3. Details of those sentenced today, 25 November 2011, at Hull Crown Court include:

• Kevin Eddishaw, (DOB 28.12.57), of 1 Handford Court, Southwell, Nottinghamshire, pleaded guilty* and was sentenced to seven years in prison.
Eddishaw was the principal gang member who masterminded the plot.
*He pleaded guilty after the jury had been sworn in. The Judge directed the jury to find Eddishaw guilty.

• John Mark Humphreys, (DOB 23.08.65), of 1 Main Street, Upton, Newark, Nottinghamshire, was found guilty and was sentenced to seven years in prison.
Humphreys was Eddishaw’s right hand man and lieutenant in the plot.

• James Fyfe, (DOB 21.05.60), of 4 Furlong Avenue, Arnold, Nottingham, pleaded guilty and was sentenced to sixteen months in prison.
Fyfe was the site foreman of Moscow Farm.

• Mark Timothy Gyles, (DOB 03.03.63), of 127 Belleville Drive, Nottingham, was found guilty and was sentenced to 12 months suspended for twelve months. He must also carry out 300 hours of unpaid work.
Gyles was one of the drivers transporting the goods.

• Michael James Matthews, (DOB 11.11.55), of 27 Stanley Grove, Weston Super Mare, Somerset, was found guilty and was sentenced to 18 months in prison.
Matthews was a printer who procured supplies of counterfeit labels and boxes.

5. Organised crime has a detrimental and harmful effect on all communities. HMRC are determined to disrupt and dismantle the illegal supply of alcohol in the UK. Anyone with information relating to this type of crime should contact the Customs Hotline on 0800 59 5000 and help us to stamp it out.

6. Follow HMRC on Twitter @HMRCgovuk.

NAT 94/11

Issued by HM Revenue & Customs Press Office Press enquiries only please contact:

Contacts:

HM Revenue & Customs Press Office
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Sara Pont
Phone: 020 7147 0394
sara.pont@hmrc.gsi.gov.uk

HMRC Out of Hours
Phone: 07860 359544
NDS.HMRC@coi.gsi.gov.uk