Encrypted messages helped snare cigarette smugglers

A smuggling gang caught complaining about the seizure of millions of cigarettes on an encrypted phone network have been jailed.

HM Revenue and Customs (HMRC) uncovered the tax scam after eight million cigarettes were seized by Border Force at Southampton Port in February 2020.

Worth more than £2.4 million in evaded duty, they were described as rattan furniture and addressed to a legitimate Midlands company that had its details hijacked.

Encrypted phone messages helped investigators identify Anthony Lenehan, Edward Fergus, John Lee, Mathew Tse and Anthony Tremarco, who were all arrested by HMRC in October 2020.

Another four men; Ricardo Hughes, Christopher Dooley, Stephen Piert and David Hunter were arrested in March 2021. The final member of the Merseyside-based gang, Graham Wall, attended a voluntary interview in April 2021.

Kate Roberts, Operational Lead, Fraud Investigation Service, HMRC, said:

“The gang imported and planned to distribute vast amounts of cigarettes to evade millions of pounds of taxes. That’s money that should have been supporting our public services.

“Cheap cigarettes come at a cost. As this case clearly shows, they often fund or are linked to other serious organised crime and illegal activity that causes real harm to our communities.

“We encourage anyone with information about the illegal sale of tobacco or alcohol to report it online.”

Five of the men were previously jailed for a total of more than 45 years for drug offences, after police uncovered incriminating messages on the encrypted communications network EncroChat. The network was taken down in 2020 following a UK-wide law enforcement operation led by the National Crime Agency (NCA).

Anthony Lenehan was identified as the man behind the EncroChat codename ‘Jet-hawk’ and had moaned to another gang member about losing a “400 grand drink” after the cigarettes were seized in 2020.

Other ‘Jet-hawk’ messages linked Lenehan to cocaine smuggling and he was jailed in 2021 for more than eight years alongside Ricardo Hughes. Hughes had led a ‘Billy Whizz’ gang that had sold amphetamine with pictures of the Beano character emblazoned over the drugs. He was jailed for 10 years in 2021.

HMRC investigators discovered Lenehan, 60, Tremarco, 75, and Hughes, 56, had financed the illegal tobacco operation. Fergus, 60, Hunter, 52, Lee, 53, Tse, 43, and Wall, 51, liaised with shipping agents and introduced associates, and Dooley, 39, and Piert, 31, were tasked with offloading and distributing the cigarettes had they not been intercepted.

All 10 men pleaded guilty to their roles in the fraud and eight were sentenced at Liverpool Crown Court on 22 November 2024.

Stephen Piert and Christpher Dooley will be sentenced on 16 December 2024.

Action to recover the proceeds of crime has been launched.

Notes to Editors:

1. Broadcast interviews with a HMRC spokesperson are available on request.
2. Anthony Tremarco DOB: 03/07/1949, of Keybank Road, Liverpool, admitted to conspiring with other to be knowingly concerned in the fraudulent evasion of Excise Duty contrary to Section 170 of the Customs and Excise Management Act 1979, in July 2024. He jailed for three years and nine months on 22 November 2024.
3. John Lee DOB: 01/10/1971, of Olive Lane, Liverpool, admitted to Assisting an Organised Crime Group contrary to section 45 Serious Crime Act 2015, in July 2024. He was jailed for 20 months, suspended for 18 months on 22 November 2024.
4. Mathew Tse DOB: 03/07/1981, of Hopwood Close, Warrington, admitted to Assisting an Organised Crime Group contrary to section 45 Serious Crime Act 2015, in July 2024. He was jailed for 22 months, suspended for 18 months on 22 November 2024.
5. Edward Fergus DOB: 09/04/1964, of Haileybury Avenue, Liverpool, admitted to conspiring with other to be knowingly concerned in the fraudulent evasion of Excise Duty contrary to Section 170 of the Customs and Excise Management Act 1979, in July 2024. He was jailed for two years and seven months on 22 November 2024.
6. Graham Wall DOB: 23/09/1973, of St Mary’s Avenue, Billinge, admitted to participating in activities of an organised crime group contrary to s.45 of the Serious Crime Act 2015, in July 2024. He was jailed for 22 months, suspended for 18 months on 22 November 2024.
7. Anthony Lenehan DOB: 20/04/1964, of Scarisbrick Road, Liverpool, admitted to conspiring with other to be knowingly concerned in the fraudulent evasion of Excise Duty contrary to Section 170 of the Customs and Excise Management Act 1979, in February 2024. He was jailed for two years and six months on 22 November 2024.
8. David Hunter DOB: 03/07/1972, of Larch Close, Billinge, admitted to conspiring with other to be knowingly concerned in the fraudulent evasion of Excise Duty contrary to Section 170 of the Customs and Excise Management Act 1979, in February 2024. He was jailed for 12 months consecutive to the sentence he is currently serving, on 22 November 2024.
9. Christopher Dooley DOB: 23/07/1985, of no fixed address, admitted to conspiring with other to be knowingly concerned in the fraudulent evasion of Excise Duty contrary to Section 170 of the Customs and Excise Management Act 1979, in April 2024.
10. Ricardo Hughes DOB: 16/01/1968, of Rock Lane, Widnes, admitted to conspiring with other to be knowingly concerned in the fraudulent evasion of Excise Duty contrary to Section 170 of the Customs and Excise Management Act 1979, in February 2024. He was jailed for 12 months consecutive to the sentence he is currently serving, on 22 November 2024.
11. Stephen Piert DOB: 05/07/1993, of no fixed address, admitted to conspiring with other to be knowingly concerned in the fraudulent evasion of Excise Duty contrary to Section 170 of the Customs and Excise Management Act 1979, in February 2024.
12. The five men previously jailed for drug offences are Ricardo Hughes, Anthony Lenehan, David Hunter, Stephen Piert and Christopher Dooley.
13. You can find out more about HMRC's approach to tax fraud at gov.uk
14. Follow HMRC’s Press Office on X @HMRCpressoffice