29 Mar 2007 05:36 PM
ARA secures over £1 million in major drug smuggling case

ASSETS RECOVERY AGENCY News Release (ARA 06/07) issued by The Government News Network on 15 February 2007

Assets Recovery Agency (ARA) Financial Investigators, working in partnership with Lancashire Constabulary, have secured Confiscation Orders worth £1,043,663 against Gerald 'Gez' Deaffern of Darwen, Lancashire, David Scattergood also of Darwen, and James Jennings of Affetside, Manchester. All three were involved in the large-scale importation of drugs into the UK using haulage companies, and were sentenced to a total of over 44 years' imprisonment for their activities.

The case began in January 2002 when Lancashire Constabulary's Serious and Organised Crime Unit (SOCU) began investigating the importation of approximately £25 million worth of drugs which had been seized. The conspiracy involved a system of renting out space on lorries to transport drugs into the UK, and investigations revealed the involvement of the three individuals in question. Running simultaneously to the criminal investigation was an ARA financial investigation into the criminal networks and personal lifestyles of those involved.

Mr. Deaffern was sentenced to 25 years' imprisonment on 15th December 2004 at Liverpool Crown Court for conspiring to import class 'A' and 'B' drugs into the UK. An appeal against his conviction and sentence failed in November 2006. At Liverpool Crown Court on 7th February 2007, HHJ Clark certified that Mr. Deaffern had benefited from his criminal behaviour in the amount of £10,849,805, and granted a Confiscation Order for £456,663 which must be paid within 12 months or he will face a default sentence of two years consecutive to his current sentence.

Mr. Scattergood was convicted on 17th February 2005 of conspiring to import class 'A' and 'B' drugs into the UK and was sentenced to eight and a half years' imprisonment. On 10th May 2005, HHJ Clark certified at Liverpool Crown Court that Mr. Scattergood's benefit from the drug trafficking amounted to £1,500,000 and made a Confiscation Order for £339,000, of which £105,739 was required to be paid within 14 days of the decision and the balance within six months, or he would face a default sentence of five years to run consecutively to his current term.

Previously, Mr. Jennings was found guilty of conspiring to import Class 'B' drugs into the UK on 29th April 2004, and on 31st January 2005 at Liverpool Crown Court HHJ Clark certified a benefit figure from his drug trafficking of £350,000, and granted a Confiscation Order for £248,000 which had to be paid within six months of that date, or Mr. Jennings would face a prison sentence of three years in default to run consecutive to his 11 years' imprisonment already being served.

The results of the financial investigations into Mr. Scattergood and Mr. Jennings could not be publicised until proceedings against Mr. Deaffern had been completed.

Jane Earl, Director of the Assets Recovery Agency, said after the successful conclusion of these cases: "Drugs are a scourge on our society, but this case shows that the Assets Recovery Agency is preventing traffickers from keeping their ill-gotten gains. This case demonstrates the close working relationship which exists between ARA, the police, and the Crown Prosecution Service to bring significant drug dealers to justice."

DI Pat Gill of Lancashire Constabulary SOCU added: "Financial investigation is a legitimate tactic to combat criminality of this type. These people were in the drugs business for profit. We aim to take the profit back."

Notes for Editors:

1. The Proceeds of Crime Act 2002 created the Assets Recovery Agency and provided completely new powers to allow ARA to seek civil recovery of the proceeds of unlawful activity by an action in the High Court. The Agency can also issue tax assessments where there are reasonable grounds to suspect that there is taxable income, gain or profit from criminal conduct.

2. The Agency is playing its part in the multi-agency approach to deliver the Government's Asset Recovery Strategy. Under the cross government initiative 'Payback', the tracing of and recovery of assets is seen as an important element in the delivery of justice, and sends out a strong deterrent message. The overall aims of the strategy are to make greater use of the investigations of criminal assets in the fight against crime; recover money that has been made from crime or which is intended for use in crime; prevent criminals and their associates from laundering the proceeds of criminal conduct, and detect and penalise such laundering where it occurs; to use the proceeds recovered for the benefit of the community.

3. On 11th January 2007, the Home Office laid a Written Ministerial Statement before Parliament setting out Government proposals to merge the Assets Recovery Agency (ARA) with the Serious Organised Crime Agency (SOCA), and to extend to prosecutors the power to launch civil recovery action under the Proceeds of Crime Act 2002. The Written Ministerial Statement can be viewed at http://www.assetsrecovery.gov.uk/AboutARA/.
Any proposed merger will require primary legislation. In the meantime ARA will continue to operate as before and use its powers to the full in proceeding with all cases under active litigation as well as adopting new cases from referring agencies in the criminal enforcement community.

Assets Recovery Agency, PO Box 39992
London EC4M 7XQ

T +44 (020) 7029 5700
F +44 (020) 7029 5706
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