8 1/2 YEARS FOR LIVERPOOL AND WIDNES SMUGGLERS

11 Mar 2004 04:15 PM

Four men from Liverpool and one from Widnes were sentenced today at Liverpool Crown Court to a total of 8 1/2 years in jail after Customs broke up a major cigarette smuggling ring. The gang are believed to be responsible for importing or trying to import over 120 million cigarettes - the excise duty evaded would have amounted to nearly 16 million.

John Anthony Burton (born 31/12/1970) Fazakerley, Liverpool was sentenced to three and a half years imprisonment. Robert Joseph Butler (20/04/1973) Kirkby, Liverpool received 21 months.

Terence Earl McHugh (05/11/1963) West Derby, Liverpool was jailed for 27 months. Stephen Mark Burton (24/07/1973) Liverpool received six months. Ian William Prior (08/10/1973) Widnes, Cheshire got six months.

Customs Head of Investigation in Manchester Chris Harrison said: "This is a very satisfactory culmination of nearly four years work by Customs investigators. This was a significant organised gang operating in at least three European countries.

"This is a fine example of the co-operation needed between law enforcement agencies within Europe to catch these sorts of criminals."

Background

This case involves the importation of six consignments totalling approximately 25 million cigarettes and a number of seizures in Holland and Germany, involving over 50 million cigarettes, destined for the UK organisation. In total it is believed the organisation was responsible for the importation, or attempted importation, of 121 million cigarettes.

On 25 May 2000, a container came into Felixstowe manifested as containing sofas. The consignee for the container was Gellings Holdings, Gellings Lane, Knowsley Industrial Park, Kirkby, Liverpool. Gellings Holdings was a company that did not exist but Terence McHugh did own a farm on Gellings Lane. The container was examined by Customs officers and concealed within the sofas were 3,960,000 cigarettes, which were duly seized.

Between 11 June and 3 July 2000 three containers entered Southampton all manifested as containing sofas. Each one was examined by Customs and all had cigarettes concealed in the sofas - 14,465,915 cigarettes in all were found. Again the consignee for these 3 containers was Gellings Holdings.

During October 2000 Dutch Customs seized three loads of cigarettes totalling 11,600,600 concealed in insulation material. All were destined for an address in Knowsley where it is believed the consignments were to be broken down before distribution. On 29 November 2000 a lorry was intercepted at Knutsford Services. It was carrying a consignment of water heaters. Concealed within the water heaters were approximately 4 million cigarettes. The delivery address for the consignment was again premises in Knowsley. In November and December 2000 German Customs made a number of seizures of cigarettes destined for either of the two addresses in Knowsley. It is believed most if not all the cigarettes originated in Turkey.

In the 14 December 2000 a vehicle pulling a soft-sided trailer arrived at one of the premises in Knowsley. Observations identified white boxes being unloaded into the premises. When Customs law enforcement officers approached the premises, Robert Butler and Terence McHugh fled the area and were subsequently arrested nearby. Stephen Burton was arrested at the premises. Ian Prior was arrested in a vehicle near to the premises. One of the boxes in the premises had been opened and the water-heater contained inside had also been opened revealing cartons of cigarettes. John Burton, at the time of his arrest, was at a nearby David Lloyds Gym. After arrest he managed to temporarily escape Customs officers before being re-apprehended.

After the arrests on 14 December, as a result of information passed by UK Customs the German authorities made further seizures totalling 40 million cigarettes.

If using specific facts contained in this release, check the information is still current. Issued by Customs & Excise Marketing and Communications Division.

For the attention of News Desks
Anyone with information about businesses that break the tax laws, competing unfairly with those that abide by them, can speak to a Customs officer in complete confidence at Customs Confidential 24 hours a day on 0800 59 5000. Or fax 0800 528 0506, write to Freepost SEA9391, PO Box 100, DA12 2BR, or e-mail
customs.confidential@hmce.gsi.gov.uk
www.hmce.gov.uk