Three men from Newcastle, who were jailed for smuggling millions of illegal cigarettes into the North East back in 2020, have been ordered to repay more than £735,000.
Kevin McDonough Snr, 62, and his 40-year-old son Kevin McDonough Jnr, both of Newbiggin Lane, Westerhope, and their co-conspirator Charles McFadyen, 77, of Norwood Road, were sentenced in November 2020, following an investigation by HM Revenue and Customs (HMRC). Following separate confiscation hearings at Newcastle Crown Court, the three men have now been ordered to repay the money they made from smuggling cigarettes into the UK or spend more time in prison.
McDonough Snr was ordered to pay £522,674 within six months or face a further five years in prison, on December 10 2021. He faces selling his home and other properties he owns in Westerhope, Fenham and Gosforth, to pay the confiscation order.
McFadyen was ordered to pay £185,837 within three months or face a further 18 months in prison, on 25 March 2022. McDonough Jnr was ordered to repay £27,128 within three months, or face another year behind bars, on January 27 2022.
Other members of the gang were also given confiscation orders of up to £8,000.
Gang members were sent to various locations across England to collect large quantities of cigarettes and hand-rolling tobacco before returning them to the North East. The drivers would often use third party vehicles to avoid detection.
On their return to the North East the illegal cigarettes and tobacco were delivered to addresses used by the gang in Newcastle, where they were stored before being sold.
Martin Lynagh, Assistant Director, Fraud Investigation Service, HMRC, said: “These men ran a sophisticated smuggling operation, which put millions of illegal cigarettes on the streets of the UK and deprived our vital public services of millions of pounds. Now they must pay back their ill-gotten gains or spend more time behind bars and still owe the money.
“Our work doesn’t stop when someone is convicted – HMRC always looks to recover proceeds from crime from criminals who try to cheat the system. If you know anyone who is committing tobacco fraud you can report them to HMRC online.”
Further details are available in our news release issued at sentencing in November 2020. Confiscation order amounts are calculated based on the total value of the realisable assets/property held at the time.
