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Issue:- 19 September 2013

'Cash in nappy bag' pair jailed

2 Manchester men caught with illegal tobacco and unexplained cash in their homes have been jailed following an investigation by HM Revenue and Customs (HMRC).

Steven McElroy, 53, of Denton was arrested on three separate occasions handling illegal cigarettes and hand rolling tobacco (HRT) and was caught with bundles of unexplained cash hidden in a nappy bag.

On one occasion, Aleksandr Baikovskij, 32, of Salford was arrested alongside McElroy in possession of smuggled HRT. He also had huge amounts of cash at home that he couldn't account for.

McElroy and Baikovskij both pleaded guilty prior to trial and were jailed on 16 September 2013, at Manchester Crown Court, for £86,000 excise duty fraud. The seized cash totalling £34,980 will now be subject to a Proceeds of Crime (POCA) hearing.

Mike O'Grady, Assistant Director of Criminal Investigation, HMRC, said:- "McElroy is a serial offender. He was originally arrested in Manchester with illegal cigarettes and tobacco in a lock-up unit. During a search of his home HMRC officers found cash concealed in a nappy bag. McElroy was subsequently arrested in Warrington with Baikovskij, this time with a large amount of illegal tobacco. During a search of Baikovskij's home more unexplained cash was seized by HMRC. Only 3 weeks later, McElroy, out on bail, was arrested in east Manchester by Police as he drove a van laden with yet more illegal tobacco. We urge the public to come forward and let us know if they have information about the sale, transport, or storage of suspect alcohol or tobacco in the Manchester area on 0800 59 5000. You can also report suspicious trading, tax evasion or smuggling via our website to help us tackle organised crime in the North West."

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