£480,000 Confiscated from Cigarette Tax Evasion
CROWN OFFICE AND PROCURATOR FISCAL SERVICE
NEWS RELEASE
19 JANUARY 2012
£480,000 CONFISCATED FROM CIGARETTE TAX EVASION
At Hamilton Sheriff Court today, a Confiscation Order for £480,000 was made against Stephen Dunn (DOB 31/03/1966).
Dunn, from Bellshill, Lanarkshire, previously pled guilty to evading VAT on tobacco under the Customs and Excise Management Act 1979 section 170(2)(a). He also admitted an offence under section 327(1)(a) of the Proceeds of Crime Act 2002 for concealing £51,285 of criminal property. He was sentenced to 12 months' imprisonment for these offences.
The conviction followed on from Operation Blubber, a pro-active investigation carried out by HM Revenue and Customs in 2007. Dunn was found to have 39,800 cigarettes and more than £400,000 cash stored in his home and his father's home.
Solicitor General, Lesley Thomson QC, said:
"Stephen Dunn had £480,000 taken from him today as he was assumed to have a criminal lifestyle under the Proceeds of Crime Act 2002.
"In his case it was from criminal trading in hundreds of thousands of cigarettes. The £480k confiscated today includes £400,000 in cash found hidden in his house and his dad's house and will now be reinvested by Scottish Ministers for the benefit of Scottish communities through the CashBack programme. A much better use of that money than funding Stephen Dunn's personal criminal lifestyle.
"This case should be a warning to those who think that tax evasion is an easy option, and a reminder that the Proceeds of Crime Act covers a wide range of offences where there has been financial benefit."
HMRC Assistant Director of Investigation in Scotland, David Odd said:
"Tobacco smuggling is serious crime and involves criminal gangs who profit from the sale of illicit cigarettes and tobacco. This crime undermines honest traders, putting their livelihoods at risk, damaging our local economy.
"Dunn's sole aim was to line his own pockets. He enjoyed the benefits of our public services but his actions were denying them vital revenue. An estimated £2bn in revenue is drained from public finances each year through tobacco fraud alone.
"Working together with our law enforcement partner's in Scotland and the Crown Office we will ruthlessly pursue the ill-gotten gains of criminals and seek to take the profit out of crime, I am delighted that a confiscation order for £480,000 was made today at Hamilton Sheriff Court.
"Anyone aware of activities which they suspect may be connected to tobacco smuggling should call our 24-hour free phone 0800 59 5000."
Ends
Notes for Editors
1. At Hamilton Sheriff Court on 8 March 2010, Stephen Dunn pled guilty to evading VAT on tobacco under the under the Customs and Excise Management Act 1979 section 170(2)(a). He also admitted an offence under section 327(1)(a) of the Proceeds of Crime Act 2002 for concealing ?51,285 of criminal property.
2. Brief summary of case: Between Feb and December 2007 HMRC carried out a proactive investigation into Stephen Dunn in relation to fraudulent evasion of VAT and excise duty on tobacco. On 11 December 2007 customs officers searched the home of his father, William Dunn, at 6 Baillie Drive, Bothwell. They recovered 16,400 cigarettes from the garage, and 8,600 cigarettes and 8.8 kg tobacco from within the house. Officers also recovered the sum of £349,960 from a holdall, £4,000 within a shoebox beneath the floorboards, a further £40,000 from behind the sofa and £500 in an upstairs bedroom. A search of Stephen Dunn's home at 9 Highwood Gardens recovered a further £12,115 (£11,000 from daughter's schoolbag) and 14,800 cigarettes from within his Range Rover vehicle. When interviewed Stephen Dunn admitted all the tobacco recovered was his. He admitted trading in tobacco for an unnamed person and claimed to be holding the cash recovered from under his father's floorboards on behalf of an unnamed person. The cash recovered totalled £406,575. The VAT evaded totalled £5,578.
3. A Confiscation Order is an order made by the court following criminal conviction, to pay a fixed sum of money from the proceeds of crime. An application for confiscation is one of the tools at the disposal of the Crown under the Proceeds of Crime Act 2002 and Proceeds of Crime (Scotland) Act 1995.
4. The Serious and Organised Crime Division works together with colleagues at the Civil Recovery Unit, and other law enforcement agencies, such as the Scottish Drugs Enforcement Agency, UK Police Forces, HM Revenue and Customs and Department for Work & Pensions (DWP) to identify and recover the proceeds of crime.
5. Proceeds of Crime legislation is also used by the Civil Recovery Unit acting on behalf of Scottish Ministers. The Civil Recovery Unit investigates and recovers the property realised through criminal activity of individuals, in the civil courts without the need for criminal conviction.
6. Money recovered under the Proceeds of Crime Act is invested by Scottish Ministers in community projects aimed at alleviating the effects of crime. To date, more than £60 million has been invested in a range of free activities for young people through the CashBack programme. Details can be found at http://www.cashbackscotland.com.
7. The Crown Office and Procurator Fiscal Service is a committed member of the Scottish Government's Serious Organised Crime Task Force. The Task Force has a remit to pursue serious organised crime in all its forms by bringing together all agencies involved in tackling organised crime groups. Task Force members include the Cabinet Secretary for Justice, the Lord Advocate, representatives from COPFS, the Scottish Government, ACPOS, SCDEA, HMRC, SOCA and SPS. Details of the work of the Taskforce can be accessed here: http://www.scotland.gov.uk/Topics/Justice/crimes/organised-crime.
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