October 4, 2022 11.17 am This story is over 27 months old

‘Tax cheat’ gang leader told to pay 500k or face five more years in jail

He was jailed for over two years in 2021

By Local Democracy Reporter

A jailed tax cheat behind a plot to smuggle millions of illegal cigarettes into the UK, has been ordered to pay more than £550,000 or face more time in prison.

Svajunas Navagruckas, 52, was jailed for 28 months in February 2021, after he led an organised crime network and was caught with 8.5 million cigarettes stashed in window frames and laundry bags at a farm in Lincoln.

The tobacco haul was worth £2.8 million in evaded duty, and HM Revenue and Customs (HMRC) seized the goods. During the investigation, Mr Navagruckas returned to Lithuania.

HMRC found laundry bags and window frames full with illegal cigarettes.

A European Arrest Warrant was issued after he was charged with conspiracy to evade excise duty. Lithuanian authorities arrested him and returned him to the UK in July 2020.

Navagruckas was one of HMRC’s most wanted fugitives, and was the fourth member of the same gang to be returned to the UK.

In August 2020 he appeared at Nottingham Crown Court to plead guilty to excise duty evasion. He has now been told he faces another five years behind bars if he does not pay £551,320 within three months.

Andrej Jerofejev, Vilmantas Simaitis and Martynas Nazaras.

Four other men, Andrej Jerofejev, 38, Vilmantas Simaitis, 48, Martynas Nazaras, 38, and Robertas Borovskis, 40, were previously jailed for their part in the plot.

They had also returned to Lithuania during the investigation but were arrested and extradited back to the UK by HMRC.

Gillian Hilton, Assistant Director, Fraud Investigation Service, HMRC, said: “Svajunas Navagruckas was the head of an organised criminal network intent on flooding our streets with millions of illicit cigarettes.

“His crimes put him in prison and now he’ll repay what he stole.

“This case shows that our actions don’t stop once someone is convicted, we will look to reclaim the stolen money that should be funding vital public services in the UK.

“If you know of anyone who is committing tax fraud you can report them to HMRC online.”