International Cooperation
in the Fight Against Organised Crime
Richard Trimble
Head of National Freight Intelligence Unit
Revenue Commissioners
Ireland
Central Intelligence & Drugs Enforcement Branch
National Freight
Intelligence Unit
Suspicious
Transaction
Reports
Customs Drugs
Law
Enforcement
MTIC
Carousel Fraud
National
Source
Management
Unit
Customs
National
Intelligence
Database
Central Intelligence & Drugs Enforcement Branch
National Freight
Intelligence Unit
Suspicious
Transaction
Reports
Customs Drugs
Law
Enforcement
MTIC
Carousel Fraud
National
Source
Management
Unit
Customs
National
Intelligence
Database
National Freight
Intelligence Unit
2002 Project Targeting
consignees in Northern
Ireland importing via
Southern ports
Warren Point
Belfast
Northern
Ireland
Drogheda
Republic
of Ireland
Dublin Port
Rosslare
Foynes
Cork
Waterford
United
Kingdom
Felixstowe
France
• 2 Suspect Containers
departed Miami, USA
on 21st February 2002
• Various Risk Indicators
• Consignments failed
pre-arrival intelligence
checks
• ETA Dublin Port
17th March 2002
(National Holiday)
The 2 Suspect Containers Transhipped
Felixstowe (UK)
Profiled for Interception in Dublin Port
Found to contain 15.7 million ‘Dorchester’ cigarettes
Follow-up Investigation regarding the
Miami/Dublin/Northern Ireland route
• Identified 7 previous containers
• Identified 4 subsequent containers
(24.3 million ‘SuperKing’ seized in Dublin Port)
Ireland forwarded
a request to OLAF under
Council Regulation 515/97
Austin Rowan
Head of Unit Customs II (Task Group Cigarettes)
Directorate of Investigations & Operations II
European Anti-Fraud Office (OLAF)
European Commission
Unit B3:
Cigarette smuggling
The “MIAMI” case
Countries involved: Ireland, USA, Belgium,
France, Germany, Spain, Portugal, Cyprus,
Uruguay, Chile, Panama, the Netherlands, United
Kingdom, Singapore, UAE & Canada
Background
• 6 containers of cigarettes seized by Irish Customs
in 2002:
– False Bills of Lading
– Fraudulent invoices presented to Irish Customs.
• Request by Irish Authorities to OLAF to coordinate
international investigations.
• Investigations revealed that cigarettes were also
smuggled into Germany, France, Spain and
Portugal.
Routing
• From the cigarette manufacturer
– to Cyprus to Uruguay to Panama to Miami.
– to Cyprus to the Netherlands to Miami.
• From Miami to EU misdescribed as other
products.
OLAF Investigations and Support
• Coordination meetings in Brussels with all countries
concerned.
• OLAF missions to Ireland, United Kingdom, France,
Spain, USA, Cyprus, Uruguay, the Netherlands.
• MA Request to Canada – excellent cooperation.
• OLAF and US ICE Attaché mission to US Department of
Justice in August 2005 – Washington DC.
• Criminal case opened in USA
• Analysis of evidence.
• Support for US, German, Spanish and Irish criminal
action.
OLAF Investigations and Support
The MIAMI investigation led to other seizures and
arrests:
• Intelligence from US ICE led to 2 controlled
deliveries in the UK in October 2006. Origin of
the cigarettes was China.
• 10,800,000 pieces seized. Prevented losses
approx. €3,000,000.
• 10 persons arrested.
OLAF Investigations and Support
Results of intelligence gathered during the
investigation:
• In March 2007 Irish customs seized
7,259,600 British Heritage cigarettes
• Produced in Gran Canaria shipped to Panama,
then to Miami, the Netherlands and Dublin.
• Declared in Ireland as wood flooring (see US
ICE presentation)
• Approx. €2,500,000 losses prevented.
OLAF Investigations and Support
• In March 2008 HMRC seized 6,000,000 GOLDEN
EAGLE cigarettes
• Shipped from Panama to Miami then to Felixtowe.
• Approx. €2,500,000 losses prevented.
Results to date
•
•
•
•
Opening of criminal case in the USA.
Opening of a criminal case in Spain.
Opening of a criminal case in Germany.
The identification of:
 Illegal cigarette consignments to different European
Union countries.
 Suspect cigarette movements via North and South
America.
 Suspect money transfers to different countries in the
world.
 Illegal consignments of cigarettes that were seized in
Ireland, UK and Belgium.
 Principal arrested and charged in Miami.
• Total of duties identified as evaded: approximately
€100,000,000.
Deborah Morrisey
Supervisory Special Agent
U.S. Immigration and Customs Enforcement (ICE)
United States of America
Operation TOBACCO ROAD
• Information initially received from the ICE Attaché's
Office Brussels, Belgium and assigned to Miami.
• Cigarettes are legitimately imported into the United
States from various ports, including UK and Panama
• Cigarettes smuggled into the United States from
China
• Organization then smuggles these cigarettes from the
United States into various European Countries
• Proceeds are then diverted back to the respective
participants and their criminal organizations.
• ICE SAC Miami works with numerous EU Countries in
an attempt to dismantle the organization.
Violations of United States Code
•
•
•
•
•
•
18 USC 554: Smuggling of Goods from the United States
18 USC 1341: Mail Fraud
18 USC 1343: Wire Fraud
18 USC 2: Conspiracy
18 USC 1956: Money Laundering
18 USC 371: Conspiracy
Container of
Cigarettes are
shipped to Miami
from foreign
Duty is paid on value
of cover load. Delivery
made.
Enter Bonded
Warehouse as
Cigarettes
The Scheme
Shipment Sent to
destination port.
Real manifest is sent to
recipient reflecting what is
actually in container
Cover load is
purchased and
moved to
warehouse.
Instructions are
sent to repack
shipment with
cover load
masking
cigarettes
Documents are
prepared reflecting
contents of shipment
being cover load.
Warehouse Receipts
Loading Instructions
Bill of Lading
Cynthia Stone
Chief of Organized Crime Section
U.S. Attorney’s Office, Southern District of Florida
U.S. Department of Justice
United States of America
The Indictment
3.
Goods, being shipped worldwide, are shipped in commerce pursuant to a bill of
lading. A bill of lading is a document issued by a carrier, acknowledging that specified goods have
been received on board as cargo for transportation to a named place for delivery to the consignee.
A consignee is an identified receiver. A bill of lading is a negotiable instrument. It is a document
of title that enables the bearer of the original bill of lading to receive the goods from the carrier upon
presentation of the bill of lading.
4.
Customs duties, excise duties, and value-added tax were levied and collected based
upon the type of goods and the value of those goods that were imported and declared on the customs
forms that are filed at entry into a country.
COUNT 1
(CONSPIRACY - 18 U.S.C. § 1349)
The Judgment
IMPRISONMENT: 24 MONTHS
RESTITUTION: $1.5 MILLION
CUTLER BAY RESIDENT PLEADS GUILTY TO SMUGGLING
Admits to Smuggling More than 27 Million Cigarettes out of the United States
Jeffrey H. Sloman, Acting United States Attorney for the Southern District of Florida, and Anthony V. Mangione,
Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE), Office of Investigations, Miami Field
Office, announce that Roman Vidal has pleaded guilty to conspiring to commit wire and mail fraud in connection
with the smuggling of cigarettes out of the United States and into various European Union countries in order to
avoid paying more than $6.5 million in customs and tax duties. Sentencing has been set for November 10, 2009
before the Honorable Alan S. Gold.
According to court documents and statements made in court today, [X] conspired with individuals located in Miami
and in Spain, Great Britain, Ireland and Germany, to smuggle cigarettes from the Port of Miami into Aachen,
Germany, Dublin, Ireland, and Felixstowe, Great Britain. To execute the scheme, [X], who ran the Miami portion of
the operation, arranged for the purchase of hundreds of cases of cigarettes from Panama and the transportation of
those cigarettes into the Port of Miami. He then arranged for the purchase of other cargo, such as yarn, wood
flooring and building insulation material, to be used as cover loads to conceal the cigarettes. Roman Vidal directed
the preparation of false bills of lading that only declared the cover load materials. These bills of lading were
presented to the shipping companies and overseas customs services. Custom duties and taxes were based only on
the falsely declared cargo and thus, no duties or taxes were paid on the cigarettes.
On four separate occasions from December 2001 through April 2008, Roman Vidal smuggled 2,702 master cases
of cigarettes - totaling more than 27 million individual cigarettes - out of the Port of Miami. Based upon the false
bills of lading, only a few thousand dollars of custom duties and taxes were paid on each shipment. The true
custom duties and taxes that should have been paid on these shipments totaled over $6.5 million dollars.
Acting U.S. Attorney Jeffrey H. Sloman commended the investigative efforts of the ICE special agents
as well as agents from various law enforcement agencies in Ireland, Great Britain, Spain and Germany
involved in this case. In addition, Mr. Sloman thanked the European Union Anti-Fraud Office based in
Brussels, Belgium, for their outstanding contribution to the investigation.
Additional commendation was extended to Lincoln Jalelian, former Trial Attorney with the U.S. Department of
Justice, Organized Crime and Racketeering Section, for his significant contribution to the case. The prosecution is
being handled by Assistant U.S. Attorney Cynthia Stone.
Press Release by United States Attorney for the Southern District of Florida.
Thank you