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Gloucestershire Business News

Three men jailed after £100,000 fake tobacco racket is exposed

Three men have been jailed for their part in a fake tobacco racket in Gloucestershire and Greater Manchester which could have cheated the Treasury out of nearly £100,000 in unpaid duty.

Araz Rasul, 37, of Southgate Street, Gloucester was jailed for fifteen months at the city crown court yesterday after he admitted dealing with cigarettes and tobacco with fraudulent intent between 1st June 2015 and 30th September 2016.

He also admitted five offences of unauthorised use of trademarks on tobacco products.

Dana Kadir, 42, of Castle Rise, Runcorn was jailed for fourteen months, following his conviction after trial on the allegation of dealing with fraudulent intent.

Soleman Hossein, 35, of Ilminster, Rochdale, who was also convicted after the trial, was given a twenty month jail term, with part of the sentence being imposed for breaching an earlier suspended sentence he received for similar offending.

The court heard that Hossein had been give the suspended sentence for tobacco regulatory offences in 2016.

A fourth man, Howkar Hassan, 33, of Willow Drive, Sheffield was given a community order with 240 hours of unpaid work, after he pleaded guilty to the fraudulent intent offence.

Prosecutor Derek Perry told Judge Michael Harington at Gloucester crown court that the charges revolved around nearly a quarter of a ton of tobacco and 80,000 cigarettes on which excise duty had not been paid.

The criminal enterprise was centred on both Gloucester and Oldham in Greater Manchester.

There were four occasions when tobacco products were seized by HMRC between May 2015 and September 2016, said Mr Perry.

"The overall revenue loss on those four dates alone is just under £100,000," he said.

"Our case is that these four dates provide a snapshot. This was an ongoing business, an enterprise.

"What was happening to the full extent? We cannot know," the barrister said.

On 2nd Nov 2015 Hasan was arrested for an unrelated matter and police found a set of keys in his possession.

They searched an address at Scott House in Southgate Street, Gloucester.

"When they entered the flat they found a large amount of tobacco," Mr Perry said.

"When officers in flat, they heard the door opening.

"It was Mr Rasul who had keys. He had come back and opened the door to be confronted by sight of two police officers in the hallway.

"He said that he lived there.

"He directed them to the bedroom full of tobacco, but in general terms denied knowledge or certainly any connection to it.

"He had on him tobacco products which matched those found in the flat," the prosecutor said.

During that search 116.2 kg of hand rolling tobacco and 8,000 cigarettes seized by the police who notified HMRC.

"On 11th May 2016 police officers stop a VW Touran on M5 just outside Gloucester," said Mr Perry. "An acquitted man was driving. In passenger seat was Mr Rasul."

The officer taking the vehicle to the police compound noted a strong smell of tobacco and discovered 147 kg of tobacco.

Some of Kadir's 'personal effects' such as a wallet, a mobile phone and bank statement were found in the Volkswagen.

The investigation continued, he said, and on 7th June 2016 HMRC attended a shop at 103 Yorkshire Street, Oldham.

"Working behind the counter was Mr Rasul," Mr Perry said. "There were people queuing up outside the store.

"Normal tobacco was sold from a roll top display, but other tobacco was being sold under the counter.

"The amount seized that day was 800g or about 20 pouches, and 1,700 cigarettes."

On 29th September 2016 HMRC officers raided the then home address of Kadir, in The Lows, Oldham.

"By then HMRC were interested in activities of Mr Kadir.

"Bank statements revealed financial transactions which seemed inconsistent with his legitimate means," the barrister said.

Mr Perry said that investigators found 'two vans near the property' in Oldham.

"One on the drive," he said, "and one out on the road.

"They gained entry to those vans," the prosecutor said.

"One had been reinforced. They had to commandeer an angle grinder from nearby workers.

"It was chockablock with illicit tobacco," he said. "112.5kg of hand rolling 68,300 cigarettes £46,000 unpaid duty.

"Mr Hossain was the registered keeper of one of the vans," Mr Perry said.

The court heard that Kadir, Rasul and Hasan had no previous convictions, but Hossein had been given a suspended jail term in February 2016 for tobacco offences.

Gwen Williamson, representing Rasul said: "He had no option but to undertake to fulfil particular roles in return for some payment. Not a lot of payment and not on a regular basis.

"He is a minion and nothing more."

Sarah Jenkins, on behalf of Kadir, said her client was a civil engineer who had obtained both a bachelor's and master's degree in the subject, but had been unable to find work.

Dealing with the offending she said: "He was very much a workhorse. Nothing smacks of sophistication or leadership as far as he is concerned.

"Apart from these matters, he is a man who has grasped the opportunity afforded to him by staying here.

"He assists those less fortunate than himself to assist in filling out forms, attending appointments with them, as a way of trying to give back to his community.

"This is a case where the sentence could be suspended.

"He would never trouble the courts again. It would be of benefit to society as a whole," the lawyer argued.

On behalf of Howkar Hassan, Nadeem Aullybocus said: "He allowed the product into a flat that he rented.

"Where it was to go, was none of his concern.

"He will assist his community when he can.

"Probation say he is an intelligent and pro-social individual in the man. He has moved away from negative influences.

"His position is significantly different to the others. He helped on occasions and did nothing else.

"There is remorse, good character and exemplary conduct in the community. I ask your honour to consider a community order."

Robin Howat, representing Hossein said: "He is not involved in the earlier seizures.

"He is not doing any of the organisation. He helps in transport of some of the items.

"These men are not the top of the tree. They are not rich as Croesus from this offending."

Passing sentence on the men, Judge Harington said: "The enterprise was clearly planned but not very sophisticated.

In the case of Rasul, Kadir and Hossein, the judge ruled it was 'so serious only custody was justified'.

He said to Kadir: "You are a highly intelligent individual. I hope and expect this is the last time you appear in a dock anywhere."

The judge told Hassan: "I will not impose a custodial sentence in your case. You are in a different position and I was impressed by the references."

Alongside the community order Hassan was ordered to pay £800 of court costs.

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