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Booze ruse costingilOm in evaded tax ends in tears

27th March 2003, Page 12
27th March 2003
Page 12
Page 12, 27th March 2003 — Booze ruse costingilOm in evaded tax ends in tears
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• by Miles Brignall Four men, Lnauding one haulier, have been found guilty of operating a booze diversion scam that has cost the Treasury close to £10m.

Southampton Crown Court heard that the men, along with five others who had already pleaded guilty to the same charge, took part in a fraud centred around a bonded warehouse in Southampton between September 2000 and March 2001.

False paperwork found by Customs showed that spirits were being moved from Southern Bond to other bonded warehouses in Birkenhead and Southern Ireland. Duty is payable on spirits as they leave a bonded warehouse, unless they are being exported outside the EU or transferred to another bonded warehouse within the EU. However, lorry loads of spirits from Southern Bond were 'diverted' onto the UK retail market and sold without the duty being paid.

Customs officers alleged that the gang was led by two men: Ian Maxwell, the director of Rigas Wine (UK) and accountant Paul Hansford, who was the director of Southern Bond and the man who created false documents to cover up the fraud.

The court heard that other members of the gang held differing roles within the scam. One of those who denied the charges is haulier John Dennis of St Johns Drive, Marchwood, Hampshire. His driver Paul Mead, also from Marchwood, was also found guilty.

Upon hearing the verdicts, Judge Boggis said: "You are all international fraudsters and particularly you, Maxwell, and you. Hansford, have gone into the witness box and lied, lied and lied again.

"You have tried to con this jury, which has seen through your tissue of lies."

Senior Customs Investigation Officer for the case, Frank Jones, said: "We are very pleased with the outcome of this trial; it has been a very long and complicated case. The dedication of the officers involved is to be commended. This was a massive fraud and these verdicts should gve a clear warning that such crime is unacceptable — fraud is not a victimless crime; £10 million of taxpayers' money was stolen by these men."

All nine men will be sentenced on 3 April.


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