MAJOR OIL FRAUD CASE CONCLUDES IN LIVERPOOL

16 Dec 2005 11:15 AM

A three-year oils fraud investigation concluded last night (Thursday) when Jason Main, a HND-qualified 'accountant' from Glasgow was sentenced to two years. The HM Revenue & Customs (HMRC) case at Liverpool Crown Court involved an eight-man gang who operated across the UK handling over 2.5 million litres of rebated fuel and approximately £1.4 million in lost revenue.

Peter Hollier, HMRC Head of Investigations in the North West said: "This operation highlights our intention to stop organised oils misuse and laundering operations. Today's sentence concludes a long and complicated investigation which will have disrupted a number of criminal enterprises in England, Scotland and Northern Ireland. Not only have we stopped a substantial amount of illegal oil entering the legitimate fuel market but we have halted a major money laundering business associated with the fraud. "This case is significant as it involved the successful prosecution of every layer of the conspiracy from delivery drivers, retailers, end users, financers and accountant. Our investigations into who did business with this chain of criminality are not concluded."

His Honour Judge Swift summed up today saying: Main was "a professional man with a respectable background which put him in the perfect situation for those involved in disguising funds. He was laundering the proceeds of a sophisticated criminal organisation and only a custodial sentence could apply".

Peter Hollier added: "Don't forget, anyone can help stop these crimes by bringing local information about suspicious money transactions or fuel fraud to one of our officers in complete confidence, on our confidential helpline 0800 59 5000, 24 hours a day. We would also be very interested to hear from anyone with information on the whereabouts of one of the principles of this fraud -Thomas McCague - who has absconded."

Scottish accountant jailed in Liverpool

On 4 November, Main (33) was found guilty of 'conspiracy to launder the proceeds of criminal conduct between January 2001 and August 2002' on behalf of two others involved in the fraud. He is the last defendant in the three-year long case to be dealt with after an investigation by HMRC officers into the gang from across the UK. They bought, transported and sold illegal fuel to haulage and coach companies and to fraudulent filling stations. Main is one of eight men who have been jailed for their parts in this conspiracy. Trading from premises in Glasgow he laundered the cash from the criminal activity, handling cheques and invoices and operated bank accounts in an attempt to disguise the origins of the money on behalf of the businessmen who financed the illegal business. A confiscation hearing in relation to Main's assets will be held on 12 April 2006.

Kevin Campbell, Thomas McCague, [redacted 26/02/2020], Paul Kelly, and Michael Molloy all from Northern Ireland appeared in court earlier in 2005 alongside Michael O'Donaghue from Derbyshire and Henry Danter from Herefordshire. Jason Main was the last to be sentenced today at Liverpool Crown Court.

Background

After a covert surveillance operation, HMRC investigators raided an active laundering plant near St Helens, Merseyside on 31 August 2002. Other gang members were arrested on the forecourt of a filling station near Ross on Wye, Herefordshire on the same day. During forensic accountancy checks, bank accounts were identified that linked the gang and uncovered the extent of their illegal fuel and money laundering activity in other parts of the UK. McCague, O'Donaghue and Kevin Campbell, all businessmen, were identified as principle organisers and financers for the conspiracy. Kelly, Molloy and [redacted 26/02/2020] were the delivery drivers, and Danter a filling station proprietor was selling on the illegal fuel from his premises at Symonds Yat near Ross on Wye.

This case was successfully prosecuted by the newly established Revenue & Customs Prosecutions Office (RCPO). RCPO is an independent prosecuting authority which reports to the Attorney General, and is responsible for the prosecution of all HMRC cases in England & Wales.

Notes for editors

1. Kevin Joseph Campbell (dob 21/03/75) of 7 Athboy Lane, Blackwatertown, Dungannon, Co Tyrone, BT71 7HF pleaded guilty to conspiracy to evade excise duty on hydrocarbon oils and conspiracy to launder the proceeds of criminal conduct. He was sentenced in June 2005 to three years jail on both counts (to run concurrently).

2. Thomas Martin McCague (dob 25/04/74) of 32, Rosemount Avenue, Armagh, BT60 1BD was convicted in his absence in June 2005 to five years on each charge of conspiracy to evade excise duty on hydrocarbon oils and conspiracy to launder the proceeds of criminal conduct (to run concurrently).

3. [redacted 26/02/2020] pleaded guilty to conspiracy to evade excise duty on hydrocarbon oils and a substantive charge of conspiracy to launder the proceeds of criminal conduct. He was sentenced in June 2005 to nine months for the first charge and three months for the second, to run concurrently and had £700 confiscated.

4. Paul Kelly (dob 29/03/70) of 10 Cathedral Mews, Armagh, BT60 8AX pleaded guilty to conspiracy to evade excise duty on hydrocarbon oils. He was sentenced in June 2005 to eight months and had £400 confiscated.

5. Michael Molloy (dob 05/08/74) of 89 Derrymagowan Road, Dungannon, Co Tyrone, BT71 6SY was sentenced to four months in June 2005 after he pleaded to a substantive charge of conspiracy to launder the proceeds of criminal conduct.

6. Michael O'Donaghue (dob 22/09/63) of 55 Longfield Lane, Ikeston, Derbyshire, DE78 4DX pleaded guilty to conspiracy to evade excise duty on hydrocarbon oils. He was sentenced to 18 months in June 2005.

7. Henry Danter (dob 14/03/44) of The Doward Hotel, Whitchurch, Ross on Wye, Herefordshire, HR9 6DT, co-director of the filling station was found guilty in June 2005 of 'being knowingly concerned in the evasion of excise duty chargeable on hydrocarbon oils between 1 April 2002 and 31 August 2002'. He had a confiscation order for £78,250 imposed, was fined £50,000 and ordered to pay costs of £25,000.

8. Jason Main (dob 12/01/72) of 143D Brownside Road, Cambuslang, Glasgow, G72 8AH was sentenced to two years on Thursday 15 December 2005 for conspiracy to launder the proceeds of criminal conduct between 1 January 2001 and August 2002 on behalf of Kevin Campbell and Thomas McCague. A confiscation hearing has been set for 12 April 2006.

9. The Revenue & Customs Prosecutions Office (RCPO) was created by Royal Assent on 7 April 2005. An independent prosecuting authority, RCPO reports directly to the Attorney General, and is responsible for prosecuting some of the largest drug and fraud cases in the UK. For further information on the RCPO please contact their press office on 020 7865 5666.

For details of this and other oils fraud cases please contact the media relations office below:

Issued by HM Revenue & Customs Media Relations Office

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HMRC Confidential helpline Tel: 0800 59 5000