MANCHESTER MEN JAILED FOR NEARLY 7 YEARS FOR FUEL LAUNDERING
15 Jul 2004 05:15 PM
Three men from Manchester were jailed today at Bolton Crown Court for
nearly seven years in total after Customs broke up a fuel laundering
plant through which 1.6 million in duty and VAT is believed to have
been evaded.
The men were arrested in June 2002 after a Customs surveillance
operation saw tanker loads of off-road diesel and kerosene enter an
industrial estate in Bolton (photographs available). Customs
discovered a laundering plant, where the red dye and markers were
removed by acid and caustic soda treatment prior to sale.
Ray Tyler, Customs Head of Investigation, NW said:
"This is a very satisfactory culmination of over two years work by
Customs investigators. This operation stopped a very large amount of
harmful fuel entering the legitimate market.
"Motorists need to be aware of the full costs of buying cheap diesel.
It puts honest fillings stations out of business, robs the taxpayer
of money for public services and puts the motorist's vehicle at risk
of serious engine damage.
"There are also environmental and safety issues surrounding
laundering plants, as the waste by-products can contaminate arable
land and rivers. That is why I would urge the members of the public
to contact our confidential hotline 0800 59 5000 and let us know of
any suspicious activities in their area."
Michael Francis Farnan, 24, an Irish national living at Worsley
received two years for his part in the fraud; Mark Whiteley, 47, of
Withington was jailed for 15 months; and Vincent Paul Bolton, 51, of
Urmston was jailed for three and a half years.
Background
Michael Farnan and Mark Whiteley were arrested at the laundering
plant at the Medex industrial unit on Lyon Road Industrial Estate,
Kearsley, Bolton on 19 June 2002. Farnan had been operating the
laundering plant for more than six months, and was found guilty on 4
March 2004 of evasion of Excise duty on road fuel, contrary to
Section 170 of Customs & Excise Management Act 1979. Whiteley pleaded
guilty to evasion of Excise duty on road fuel contrary to Section 170
CEMA 1979 on 20 January 2004.
Vincent Bolton was arrested two days later. He was responsible for
running the laundering plant, setting up bogus companies and
administering bank accounts for the purchase of 3,296,000 litres of
gas oil (red diesel) and kerosene and the onward sale of the
laundered fuel. He pleaded guilty to evasion of Excise duty on road
fuel contrary to Section 170 CEMA on 9 May 2003.
Note for editors
1. Red diesel is marked gas oil, a fuel liable to a rebated rate of
duty for use mainly in agriculture and the construction industry, and
not for use in road vehicles. Kerosene is a heating oil and is free
of duty.
2. Fuel laundering attempts to remove the government marker from red
diesel, by using strong acids and chemicals. The chemicals and acids
tend to remain in the laundered fuel and damage fuel pumps in diesel
cars.
3. Anyone with information that may be linked to fuel fraud, can
speak to a Customs' officer in complete confidence by calling
Customs' 24-hour confidential freephone on 0800 59 5000, fax 0800 528
0506 or write to Freepost SEA9391, PO Box 100, DA12 2BR or e-mail
customs.confidential@hmce.gsi.gov.uk
If using specific facts contained in this release please check the
information is still current. Issued by HM Customs and Excise
Marketing & Communications Division
For the attention of News Desks
Anyone with information about illegally imported drugs, tobacco or
alcohol or about VAT or fuel fraud 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