Fourteen arrested over suspected £40m alcohol fraud

Fourteen people have been arrested on suspicion of money laundering as part of a multi-million pound alcohol fraud scam.

Fourteen people have been arrested on suspicion of alcohol fraud

HM Revenue and Customs (HMRC) arrested the suspects yesterday in dawn raids for allegedly diverting non-duty paid alcohol and selling it on the UK market.

It is estimated the group – hailing from London, Essex, Kent, Cardiff, Berkshire, West Midlands and Lancashire, UK – evaded £40 million in duty and tax and that those arrested “have been instrumental” in laundering the money from the alcohol fraud.

“This is a major investigation into what we suspect is a well organised and professional attempt to launder the proceeds from a significant alcohol fraud and steal £40 million from the UK economy,” said Alan Tully, assistant director, criminal investigation, HMRC.

“We are committed to stamping out alcohol fraud, which drains around £1 billion from public financed each year, affecting public services and legitimate retailers who have to compete with the illicit market.”

A total of £650,000 was seized during the raids, along with five lorries of beer and wine, computers and business records.

Officers said they were continuing investigations.

In May, two Irish men were jailed for smuggling more than 200,000 litres of alcohol into the UK, avoiding nearly £2 million in excise duty.