Six members of a
gang who used high-tech equipment to turn out 24 fake bottles of
vodka a minute were jailed at Southwark Crown Court today for more
than 56 years following a complex international investigation by
HM Revenue & Customs (HMRC).
The gang made more than 1.3 million litres of the illegal vodka
in a rat infested warehouse in Hackney, East London in an attempt
to deprive the public purse of nearly £16m in duty and VAT. They
spent the money on powerful cars, luxury Docklands apartments and
lavish holidays in exclusive hotels, including a £4,000 three-day
jaunt to Dubai.
Polish workers, brought to the UK solely to work in the
warehouses, were housed in filthy on-site accommodation, enabling
the gang to run a 24/7 operation.
In North London the gang used sophisticated equipment which
produced 9.5 tonnes of counterfeit hand rolling tobacco at the
rate of 100 pouches per minute, valued at £800,000 in duty.
The packaging of both the vodka and tobacco was so convincing
that the public would have been duped into thinking they were
buying the real thing.
HMRC investigators worked closely with European law enforcement
agencies from the Netherlands, Germany, Belgium, Poland and Cyprus
to bring the gang to justice. The ethanol used in the Vodka
factory came from Eastern Europe and the tobacco was stored in
Holland before coming to the UK. Further evidence suggested the
counterfeit packaging came from Cyprus.
Simon Grunwell, Assistant Director HMRC Criminal Investigation said:
“HM Revenue & Customs is committed to protecting the
public purse from attacks by organised crime gangs trying to steal
vast amounts of money. Where we find fraud we will act without
delay to bring those responsible to justice.”
Confiscation proceedings are now underway.
Notes to Editors
1. All defendants were charged with Conspiracy to Cheat the
Public Revenue. Details of individual defendants are as follows:
· Harvey Edwin CONROY, DOB 07/02/50, Totteridge Park, London,
N20, sentenced to 12 years.
· Steve DAVIES, DOB 27/06/62, South Quay Square, London, E14,
sentenced to 10 years.
· Michael OLIVER, DOB 30/05/48, Cae-Brynton, Newport, Gwent,
NP20, sentenced to 10 years.
· Geoffrey HALL, DOB 19/09/58, Newport Pagnell, Buckinghamshire,
MK16, sentenced to 10 years (plus one year for an unrelated offence).
· Alan SAUNDERSON, DOB 01/11/50, Linden Close, London, N14,
sentenced to eight years.
· Christopher HILL, DOB 08/12/49, Quarry Rise, Newport, Gwent,
NP20, sentenced to six and a half years.
2. The vodka was manufactured and bottled at an illicit factory
in Dalston Lane, Hackney, London, where 33,000 litres of pure
ethanol were found by HMRC officers.
3. The investigation began in May 2007. Arrests were made in June
and November 2007.
4. If anyone has any information to report to HM Revenue
& Customs (HMRC) about any individuals or businesses that
may be evading their tax, please contact the Tax Evasion hotline
by calling 0800 788 887 or via the website www.hmrc.gov.uk/tax-evasion.
5. To view the documents associated with this release, please
use the link below:
Issued by HM Revenue & Customs Press Office Press
enquiries only please contact:
Contacts:
HMRC Out of Hours
Phone: 07860 359544
NDS.HMRC@coi.gsi.gov.uk
Jonathan Hall
Phone: 020 7147 0052
jonathan.hall@hmrc.gsi.gov.uk
Sara Gaines
Phone: 020 7147 0394
sara.gaines@hmrc.gsi.gov.uk