Major fuel laundering ring smashed
Major fuel laundering ring smashedThree men, two from the West Midlands and one from Northern Ireland,
have been sent to prison for a total of 13.5 years at Coventry Crown
Court today, for their part in an illegal fuel-laundering scam, resulting
in the evasion of over £2 million in excise duty and VAT.
A successful undercover operation by HM Revenue & Customs Officers
(HMRC) showed how rebated oil (red diesel and kerosene) collected from a
licensed distributor was laundered or mixed and then sold to the retail
market as duty paid road diesel and ultra low sulphur diesel. The gang
were also smuggling, laundering and mixing rebated oil (green diesel)
from the Republic of Ireland.
Frank Jones Assistant Chief Investigation Officer for HMRC, said: "The
success of this operation is a result of our determined efforts to
disrupt and dismantle the illegal supply of fuel. Organised crime has a
detrimental and harmful effect on all our communities as well as a
damaging impact on our environment. We would urge anyone with information on
fuel misuse or suspicious activities in their area to contact us in
confidence straight away."
The fraud involved the laundering and distribution of over four million
litres of fuel over an eight-month period.
In August 2004, 34,000 litres of kerosene were paid for in cash and
collected in a number of fuel tankers driven by O'Doherty on behalf of Taz
Construction of Derby, a company whose details had been hijacked. The
fuel was sold using a bogus company called Mac Oil based in Manchester,
operated by others involved in the fraud.
During 2005, observations showed that after collecting the fuel
O'Doherty drove to rural premises situated in the vicinity of Lizard Lane,
Tong Forge near Telford, Shropshire, and to warehouse premises in Measham,
Swadlincote, Derbyshire. O'Doherty was subsequently intercepted by
Police on the M6 driving a tanker containing 25,000 litres of illicit fuel.
Fuel was also seized from the tanker's running tank.
In March 2005, HMRC officers executed a number of search warrants in
the Midlands and arrested O'Doherty. A mixing plant was dismantled and
quantities of kerosene and green diesel were seized at the Tong Forge
site. At the Measham warehouse a fully operating oils laundering plant was
dismantled and in excess of 34,000 litres of finished product (DERV)
was seized.
O'Doherty was charged with involvement in fuel laundering and excise
fraud. Follow-up enquiries, which included searches and arrests, in
Northern Ireland and Wolverhampton, established the involvement of
organisers Mulholland and Singh in the fraud.
HMRC is keen to work closely with local people and communities in the
fight against crime. Individuals with information relating to illegally
imported goods or tax evasion and fraud are encouraged to contact
HMRC's confidential hotline number on 0800 59 5000 or email
customs.confidential@hmrc.gsi.gov.uk
This case was successfully prosecuted by the Revenue & Customs
Prosecutions Office (RCPO). RCPO is an independent prosecuting authority that
reports to the Attorney General, and is responsible for the prosecution
of all HMRC cases in England and Wales.