38 tons of tobacco and equipment worth UAH 47 million: BES seizes shadow factory
14 November 08:59
Detectives of the Economic Security Bureau in Chernivtsi region eliminated a large-scale scheme of illegal tobacco production. The clandestine factory operated in Poltava region and supplied the illegal cigarette market throughout Ukraine. This was reported by "Komersant Ukrainian" with reference to the BES.
How the scheme worked
According to the investigation, a group of 14 people organized the industrial production of cigarettes without licenses and excise tax stamps. They used high-powered equipment and fermented tobacco, which allowed them to produce counterfeit products in large volumes.
Finished cigarettes were sold through shadow channels. The group members invested the proceeds of their activities in real estate, vehicles and other assets, legalizing their criminal profits.
Searches and seizures
During six searches at the group’s locations, the BES detectives seized
- two industrial lines for the production of filterless cigarettes;
- machines for processing and grinding tobacco leaves
- over 38 tons of tobacco raw materials;
- more than 240 thousand packs of counterfeit cigarettes with an estimated value of about UAH 20 million;
- printing products, tobacco paper, packaging film;
- excise tax stamps of Ukraine;
- draft records;
- cell phones;
- illegally obtained funds and a hardware wallet for cryptocurrency;
- cash in various currencies in the amount equivalent to UAH 3.7 million.
The estimated total value of the seized equipment and products is about UAH 47 million.
What articles are charged against the defendants
The pre-trial investigation is ongoing on the grounds of crimes stipulated by Art:
- ч. 1 and 2 of Art. 204 of the Criminal Code of Ukraine – illegal manufacture, storage and sale of excisable goods;
- ч. 2 of Article 209 of the Criminal Code of Ukraine – legalization of proceeds of crime.
Law enforcement officers are establishing the roles of all participants in the scheme, as well as the circle of people involved in the organization, financing and sale of counterfeit tobacco products.
Who participated in the operation
Operational support was provided by officers of the Operational and Investigative Department of the State Border Guard Service.
Procedural guidance was provided by the Chernivtsi Regional Prosecutor’s Office.
