A Luton-based criminal gang that smuggled and distributed 5.8 tonnes of illegal tobacco over three years has been jailed for tax evasion and money laundering.
Ringleader Yuanjian Zhou, 48, along with Bryan Kim, 42, and Faruque Hussein, 54, illegally imported raw tobacco into the UK, processed it into hand-rolling tobacco, and sold it in counterfeit packaging. The operation evaded nearly £1.5 million in tax duties.
Ruifang Zhang, 45, the wife of Zhou, laundered the illicit earnings, using the funds to pay a mortgage deposit and monthly payments. She also provided false information to secure the mortgage.
An HM Revenue and Customs (HMRC) investigation led to raids across Luton, Leicester, and Nottingham, where officers uncovered massive stashes of illicit tobacco and financial records.
Following a four-week trial at Luton Crown Court in December 2024, all four were convicted:
Yuanjian Zhou (48), from Glasgow: 7 years, 7 months in prison
Bryan Kim (42), from Luton: 3 years, 4 months in prison
Faruque Hussein (54), from Luton: 3 years, 4 months in prison
Ruifang Zhang (45), from Harlow: 2 years, 5 months in prison
Zhou, Kim, and Hussein were found guilty of cheating the public revenue, while Zhang was convicted of money laundering and mortgage fraud worth £270,000.
Peter Vivian, HMRC’s Fraud Investigation Service operational lead, stated:
“The illicit tobacco trade harms public services and legitimate businesses. We continue to work with partners to track down and prosecute offenders.”
HMRC urges anyone with information on tobacco smuggling or illicit trade to report it online.
