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Gang in £1.7m duty trial 'disguised tobacco as tea'

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A gang of smugglers tried to evade £1.7 million in duty and taxes on illegal cigarettes and tobacco which had been disguised as Chinese tea, a court heard.

Around 9.4 tons of hand rolling tobacco, concealed in bags of Chinese tea, was seized by HM Revenue and Customs officers from vans and a container at a self-storage unit in the Black Country, Wolverhampton Crown Court was told.

Alan Nesbeth, both of Bilston, and Shabab Ali, of Birmingham, are standing trial accused of conspiring or being concerned in the fraudulent evasion of duty.

Mr Nicholas Smith, prosecuting, said Ali and Nesbeth were at the Alligator Self Storage unit, in Wednesbury, when it was raided in 2013.

He added that further investigations led officers to believe that Nesbeth had been involved in securing the storage unit almost a fortnight before, while Ali was said to be involved in hiring a van found at the scene.

He said the duty evasion amounted to a 'substantial' sum of money. Mr Smith told the jury: "Think about the man who runs the corner shop who sells cigarettes legitimately.

"He is being undercut by people who are smuggling cigarettes and selling them for half the price. It has a huge knock-on effect."

A third person, Renna Graham, from Bilston, is also standing trial accused of conspiring with others to evade duty between July 2011 and January 2013 in relation to an earlier investigation prompted by another raid.

The court was told that Revenue and Customs officers carried out an initial raid in 2012 where 303.8kg of loose tobacco and 8,000 illegal cigarettes - evading £47, 846.84 in duty - were found at an address in Handsworth in February. The court heard that the tobacco had been again disguised as Chinese tea.

Investigations later led officers to the property of Jian Ning Yang in Linwood Road, Dudley, who has since admitted conspiring to evade duty.

Mr Smith said tobacco had been found along with Amber Leaf pouches and evidence of payments being made to storage and courier companies.

The court was also told that in August 2012 officers watched Nesbeth meet another man outside Bilston post office, in Hall Street, and show him tobacco before money was exchanged.

Mr Smith said he was seen a short time later with Renna Graham being driven in a Ford Mondeo by Yang, before Graham and Nesbeth got out to collect parcels from the post office.

The court was told they were stopped attempting to put boxes in the car and a search of the car boot found 10,800 illegal cigarettes. All three were arrested and their homes were searched.

Mr Smith said thousands of pounds worth of cash was found at Yang's address, including £9,000 concealed in a freezer, together with 11,600 foreign cigarettes and 12kg of hand rolled tobacco.

A total of 2,680 American Legend cigarettes, which are not sold in this country, were said to be found at Graham's home in Bradley Lane, Bilston.

Graham, aged 63, denies conspiring with others to evade duty between July 2011 and January 2013.

Ali, 33, of Frederick Road, Aston, Birmingham, denies being concerned in the fraudulent evasion of duty in May 2013.

Nesbeth, 53, of Glyn Avenue, Moxley, Bilston, also denies both charges.

The trial continues.

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