BEB exposed illegal tobacco business worth UAH 35.7 million: nine people will be tried

Ukraine has completed the investigation into a large-scale scheme for the illegal production and sale of tobacco products. Nine people will stand trial, six of whom are additionally charged with money laundering. The total amount of illegal products and legalized funds sold exceeded UAH 35.7 million.

This was reported by the Bureau of Economic Security of Ukraine.

How the scheme worked

According to the investigation, the organizer of the illegal business was a 29-year-old man who involved other participants in the activity and distributed responsibilities between them.

Some of the participants were responsible for growing and processing tobacco, others for transporting raw materials, accepting orders, packaging and selling finished products.

To organize production, the group members set up a tobacco plantation with an area of ​​11 hectares on the territory of a private household in the Ternopil region.

The harvested tobacco was dried in greenhouses, crushed and prepared for sale. Part of the raw materials were sent by mail to Odessa, where they were further processed and packaged in an underground warehouse.

Sales through online stores and markets

Specially created online stores became the main channel for selling illegal products.

Buyers placed orders online, after which the goods were delivered by postal services throughout Ukraine. Payment was received to the bank accounts of individuals and entrepreneurs or in cash.

In addition, tobacco products were sold through trading pavilions at the Odessa markets “Novyi” and “Kyivskyi”.

According to the investigation, the group members legalized the funds received from illegal activities.

More than 9 tons of tobacco and property worth 13 million hryvnias were seized

As part of the criminal proceedings, BEB detectives conducted 23 authorized searches in the Odessa and Ternopil regions.

Law enforcement officers have shut down the underground production, online sales channel, and illegal retail outlets.

During the searches, the following items were seized:

over 9.1 tons of tobacco;

cigarettes without excise stamps;

equipment for processing and packaging products;

cigarette manufacturing devices;

cartridges, paper, filters, and flavorings;

vehicles, money, bank cards, and draft notes.

The total value of the seized goods exceeds UAH 13 million.

What liability does the accused face

Depending on their role in the scheme, nine participants are charged with criminal offenses under Article 204 of the Criminal Code of Ukraine — illegal manufacture, storage, sale, or transportation for the purpose of selling excisable goods.

Six defendants are also charged under Part Three of Article 209 of the Criminal Code of Ukraine – legalization of property obtained by criminal means.

The court chose preventive measures in the form of detention with the possibility of posting bail for the six defendants.

The indictment has already been sent to the court.

The procedural management was carried out by the Odesa Regional Prosecutor’s Office. Officers of the National Police and the State Border Guard Service of Ukraine also joined in exposing the scheme.