EUR 13 million worth of property seized and fleet of retro luxury cars confiscated in major illegal tobacco case

RIGA - The State Police has seized property worth EUR 13 million and confiscated a fleet of restored retro-luxury cars in a major case of illegal tobacco production, the LETA learned from the police.

Last week, the State Police, in cooperation with the State Border Guard, detained 32 people on suspicion of illegal tobacco production in a large-scale operation, busting an international organized crime network. An illegal cigarette plant with production equipment and raw materials was discovered in Ludza, and a total of almost 300 million cigarettes and about 47 tons of shredded tobacco leaves were seized.

For two years, officers from the Organized Crime Serious and Serial Crimes Combating Division of the Criminal Police (ONSSNAP) have been investigating an international organized criminal network involved in the production, smuggling and sale of illegal tobacco products in Latvia and other European countries.

Several criminal proceedings related to the production of illicit tobacco and money laundering were initiated in connection with the activities of this criminal network. During the investigation, several persons linked to the criminal activities of the network and involved in money laundering in the territory of Latvia were arrested.

In the summer of this year, a Latvian national - the leader of an organized criminal network - was detained on suspicion of money laundering. Today, the Chief of the State Police, Armands Ruks, told at a press conference that the leader of the group arrested in Latvia had been under the police radar for two years and was arrested in June.

Searches in both Spain and Latvia led to the seizure of a total of 100 properties worth EUR 13 million, EUR 150,000 in bank accounts and a fleet of renovated retro-luxury cars. The organizer is currently in custody.

The criminal network was highly sophisticated and was familiar with police tactics and methodology. However, after the arrest of the leader of the gang, the police felt sever resistance, disrupting the investigation, law enforcement officials said.

Continuing the investigation to uncover the criminal business, on December 10, the ONSSNAP and Criminal Investigation Services of the State Police, as well as the Aviation and Special Operations Directorate of the State Border Guard and the Special Operations Unit Sigma of the State Border Guard detained a total of 32 persons and uncovered an illegal cigarette plant in a large-scale joint operation in Ludza and Riga.

Criminal proceedings were carried out simultaneously in several locations. The State Police carried out 26 authorized searches in Riga, identifying warehouses with finished products and detained seven persons - six Latvian nationals and one Russian national.

The State Border Guard carried out eight searches in Ludza, Rezekne and Daugavpils, and 25 Ukrainians were detained at the Ludza plant, where they were involved in the production of illegal Marlboro, Prince, Winston and LM brands of cigarettes.

All detainees were remanded in custody.

In total, the State Police seized 164 million cigarettes without excise labels, the equivalent of 16 truck trailers. Police also seized three cars and three trucks used to carry out the criminal activity. The search also led to the seizure of EUR 55,000 in cash, a number of technical devices such as GPS signal jammers and detectors, which are items of strategic importance, as well as an unregistered firearm and ammunition.

The State Border Guard seized 132 million cigarettes without excise labels, the equivalent of 13 truck trailers. Border guards also seized about 47 tons of shredded tobacco leaves, which can be used to produce 68 million cigarettes, as well as four trucks with trailers and one cargo van used to carry out criminal activities.

If the cigarettes were to end up on the Latvian market, for example, the total loss to the state would be more than EUR 75 million.

The police know that the criminals were involved in the production of illegal cigarettes for more than ten years. The Lithuanian Customs Criminal Service and Europol's AP Smoke supported the State Police in this investigation. At a press conference, Ruks thanked his partners in Spain, the UK and other European countries for their help in the investigation.

Ruks also informed journalists that the group had operated extensively in Europe and had also expanded its activities in the UK. The market for illegal cigarettes was mainly outside Latvia, where the price is higher, in Central Europe, but "we can also talk about Northern Europe". Both land and sea routes were used to transport cigarettes.

These offences are being investigated in criminal proceedings for illicit trafficking in tobacco products, including manufacturing, money laundering and smuggling.

Foreigners who were illegally employed in the territory of Latvia will also be held administratively liable for violation of the conditions of employment provided for in the Immigration Law, if committed by the employed foreigner.

"With this investigation, we are saying that our authorities are able and capable of apprehending organized crime groups of the highest caliber. Although our country is small, the scale is large and I think that criminals are now reconsidering their ways," Ruks added.

The law enforcement authorities also stressed that the investigation has only just started and work is continuing to bring other organized crime members to justice.