CONVICTED SMUGGLER'S CRIME PROFITS CONFISCATED

15 May 2006 03:15 PM

A confiscation hearing at Glasgow Sheriff Court yesterday (Thursday) ruled that East Kilbride man Robert Martin Lally had benefited from the proceeds of crime and a confiscation order was made for £127,000, payable within 6 months.

Lally was jailed for 15 months and a forfeiture of £30,000 was granted at Glasgow Sheriff Court on 22 September 2005. He pleaded guilty to evading revenue of £139,000 between 14 April 2004 and 27 May 2004, while illegally trading in duty free cigarettes and hand rolling tobacco.

HMRC Head of Investigation Scotland, Gordon Miller said:

"Today's case sends a significant message to anyone tempted to deal in illegal tobacco products. HMRC officers in Scotland are determined to protect honest traders and the public by investigating, prosecuting and removing the financial benefits from individuals or organisations involved in the illegal trade in tobacco.

"Tobacco smuggling undermines public health by creating a cheap and unregulated supply, operated by criminals. The work of Revenue & Customs investigators in this case has stopped around 230,000 duty free cigarettes and 118kgs of hand rolling tobacco reaching our streets. By removing these smuggled cigarettes and tobacco from the supply chain, we have helped protect honest shopkeepers from illegal competition.

"If you know of any suspicious activities which may be linked to tobacco smuggling, call our 24-hour freephone 0800 59 5000."

Notes for editors

1. HM Revenue & Customs (HMRC) investigators arrested Robert Martin Lally (dob 21/05/65) of 11 Grampian Drive, East Kilbride on 27 May 2004, following searches at four addresses in the Glasgow area. The investigators seized a total of 230,560 cigarettes and 118kgs of hand rolling tobacco and detained £31,489 in cash, under proceeds of crime legislation. Lally plead guilty to evading revenue of £139,000 between 14 April 2004 and 27 May 2004.

2. HMRC investigators executed search warrants at four separate commercial premises in Glasgow on 27 May 2004, including the butcher's shop where Mr Lally worked. £31,489 in cash was found concealed in a vacuum packing machine at a store for the butcher's shop and on Mr Lally's person.

3. Stashes of both cigarettes and hand rolling tobacco were found at each of the other sites, including a quantity deliberately concealed under a hatch in the floor space. Search of a car used by Mr Lally revealed keys to a container and a lock up at two of the addresses, both used to hide the goods.

4. Proceeds of Crime Act 2002 gave Customs, (now HMRC), and the police extended powers to seize money suspected of being either the proceeds of crime or for use in any crime. These powers apply to all crime, and are enforceable inland as well as at the borders. HMRC report their cases in Scotland to the Procurator Fiscal Service and the Crown Office.

Issued by HM Revenue & Customs Press Office

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