Laundering of over UAH 3 million from illegal cigarette trafficking: scheme organizers sentenced in Odesa

 The organizers of an illicit cigarette sales scheme in Odesa have been fined and banned from working with excise goods. Based on evidence gathered by detectives of the Territorial Office of the Economic Security Bureau of Ukraine in the Odesa region, a court sentenced two Odesa residents who sold illegally manufactured tobacco products throughout the city.

During the pre-trial investigation, detectives established that one of the suspects was registered as an individual entrepreneur in the retail trade of food, beverages, and tobacco products. Over a two-year period, he and an accomplice purchased illegally manufactured cigarettes and sold them through retail stores in Odesa.

To facilitate this, they recruited workers and offered them positions as sales clerks. The hired individuals were unaware of the business's illicit nature and sold tobacco products to the public for cash and non-cash payments.

During their illicit activities, the suspects generated illegal profits from the sale of excise goods, which they subsequently laundered. To achieve this, one of the suspects opened bank accounts where the proceeds from the illegal operations were deposited. The total amount of laundered funds reached UAH 3.3 million.

The men used the proceeds to rent commercial premises, purchase inventory, and cover personal expenses.

During the searches, ESBU detectives seized over 24,000 packs of tobacco products, as well as electronic cigarettes, documentation, and rough ledger records. The seized goods, valued at UAH 3 million, were placed under asset forfeiture.

The court found the suspects guilty of laundering income derived from the illegal manufacture and sale of excise goods. The masterminds of the scheme were sentenced to fines of UAH 102,000 and UAH 85,000, along with a one-year ban on holding positions related to the manufacture, storage, sale, and transportation of excise goods. The illegally manufactured products will be confiscated and destroyed.

Procedural guidance was provided by prosecutors of the Odesa Regional Prosecutor's Office.