NORTH WEST FUEL FRAUDSTERS PAY THE PRICE

2 Aug 2005 04:15 PM

In just two days thirteen fuel fraudsters trading in or using illegal fuel paid the price, thanks to HM Revenue & Customs (HMRC) taking action in Manchester and Liverpool.

On Thursday 28 July, HMRC officers closed down an unlicensed filling station known as a 'huckster' site in Manchester seizing 10 vehicles from motorists using the fuel. In a separate case, on Friday 29 July the final member of a fuel fraud gang was found guilty at Liverpool Crown Court - the case involved selling illegal fuel to unsuspecting filling stations.

Colin McAllister, HMRC Head of Detection (oils) said:

"We want to take illegal fuel out of the supply chain before it damages honest businesses such as genuine local filling stations and haulage operators. These frauds potentially damage vehicle engines and can pollute the environment. They are just two examples of the action we take in the north west region involving the different layers and types of deliberate and organised attempts to defraud both the Revenue and the public. People sometimes view these as victimless crimes but that's just not the case - the potential harm is much wider spread than they realise.

"Motorists need to be aware of the full costs of buying cheap fuel. It puts honest filling 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 members of the public to contact our confidential hotline, 0800 59 5000 and let us know of any suspicious activities in their area."

Manchester illegal fuel stop

HMRC officers, assisted by the Greater Manchester Police, visited premises in Longsight, Manchester and dismantled a 'huckster' site selling marked rebated gas oil (known as red diesel) to motorists for road use. Whilst closing the illegal filling station down officers also seized 10 vehicles from motorists using the site. These motorists each face a fixed penalty of £500 and seizure of their car by HMRC. Drivers in cases such as this also run the risk of custodial sentences or the permanent loss of their vehicle. HMRC officers seized 1,700 litres of fuel, a number of vehicles and pumping equipment. They estimated the site had the capacity to sell 4,000 litres a week equating to £2,000 in evaded fuel duty (or £104,000 in a year).

Liverpool fuel fraudsters

One man was found guilty at Liverpool Crown Court on Friday after two of his co-conspirators had earlier pleaded guilty following a HM Revenue & Customs (HMRC) investigation into their fuel business proved they were all involved in a major fraud to evade duty on fuel totalling £382,750.

A gang, including two men from Northern Ireland and one from Blackburn, was investigated over a period of months. During the investigation HMRC officers traced £382,750 in evaded Excise duty related to their activities. HMRC investigators demonstrated that the men had been involved in the wholesale movement of illegal fuel around the region (Liverpool, Knowsley, Bury, and Blackburn) and beyond (Leeds). They then went on to sell kerosene to unsuspecting filling stations. By supplying kerosene and/or gas oil instead of genuine road diesel they not only defrauded the Revenue but also the businesses they were dealing with. In addition, by exchanging kerosene and/or gas oil for genuine ultra low sulphur diesel (ULSD) they were increasing environmental pollutants and causing increased levels of engine damage. HMRC officers also detained £17,000 in cash from the men during searches under the Proceeds of Crime Act, a full confiscation hearing will follow sentencing.

Kevin Noel O'Hare (dob 23/12/62) of 35 Foughillotra Road, Jonesborough, Newry, County Down, Northern Ireland BT35 8JE was found guilty of conspiracy to evade Excise duty on road fuel - he was employed as a driver and was responsible for delivering the fuel.

Brendan Thomas Morgan (dob 01/06/65) of 6 Morgans Lane, Jonesborough, Newry, County Down, Northern Ireland, BT35 8BD (and 32 Woodbrook Avenue, Aintree, Merseyside L9 8EP), a businessman, had earlier pleaded guilty of conspiracy to evade Excise duty. He too was observed at fuel deliveries and he handled the fake business accounts that bought and sold fuel consignments in bulk.

Mohammed Abdullah (dob 15/01/34) of 28 Cadshaw Close, Blackburn, Lancashire, BB1 8RN, a proprietor of a petrol filling station business at Rosehill Service Station, Higher Audley, Blackburn also pleaded guilty at an earlier court appearance to evasion of Excise duty. He knowingly bought the fuel and sold it on to innocent motorists.

All three men will be sentenced on 1 September 2005. This case was successfully prosecuted by the newly established Revenue and Customs Prosecutions Office (RCPO). RCPO is an independent prosecuting authority which reports to the Attorney General, and is responsible for the prosecution of all HMRC cases in England & Wales.

Notes 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. Commercial motorists run the risk of having their vehicle or fleet seized and their company accounts being audited for evidence of prolonged fraud, the penalties escalate depending on the findings of the subsequent investigations, this can be very damaging for a business concern.

4. The Revenue & Customs Prosecutions Office (RCPO) was created by Royal Assent on 7 April 2005. An independent prosecuting authority, RCPO reports directly to the Attorney General, and is responsible for prosecuting some of the largest drug and fraud cases in the UK. For further information please contact the RCPO press office on 020 7865 5666.

Issued by HM Revenue & Customs Media Relations Team
Website
www.hmrc.gov.uk
HMRC National Advice Service Tel: 0845 010 9000

Customs Confidential Hotline Tel: 0800 59 5000