Case Study: Essex-Based Gang Supplying Fake Tobacco Convicted

Overview

In a covert operation spearheaded by TM Eye’s Illicit Tobacco Team, an Essex-based gang involved in the distribution and sale of counterfeit tobacco was dismantled and brought to justice. The operation led to the prosecution of three key individuals—Blake Williams, Mollie Phelps, and James Cox—all residents of Aveley, Essex. The gang was engaged in selling counterfeit Amber Leaf tobacco across Essex and East London, using social media platforms to reach buyers.

The case was prosecuted by TM Eye on behalf of Japanese Tobacco International (JTI) as a private criminal prosecution. The extensive undercover and surveillance operation, lasting several months, resulted in significant seizures and the conviction of all three defendants under the Trademarks Act of 1994 and the Criminal Attempts Act of 1981.

Background

Blake Williams, identified as the ringleader, supplied large quantities of fake Amber Leaf tobacco to his accomplices Mollie Phelps and James Cox, who sold the counterfeit goods through social media platforms such as Facebook. The group utilized popular selling groups like “Things for sale in and around Romford” and “Grays and Chafford Sell Bay,” which had a combined membership of over 80,000 people. These platforms enabled them to sell large amounts of illicit tobacco at prices significantly lower than the market value, which undercut legitimate businesses and posed a serious health risk to consumers.

Key Operations 

  1. Covert Test Purchases – June to July 2019

The operation began with TM Eye’s undercover detectives infiltrating the social media groups used by Phelps to advertise counterfeit tobacco. A detective from TM Eye’s Dedicated Undercover Unit made contact with Phelps and arranged to purchase five 50-gram pouches of Amber Leaf tobacco for £50, whereas the genuine product retails for £116. On June 25, 2019, the detective collected the goods from Phelps’ home in Tilbury, Essex, covertly recording the transaction. Upon inspection, the tobacco and packaging were confirmed to be fake. Two additional test purchases were made on June 27 and July 2, both involving Phelps’ partner, James Cox, who negotiated the sales.

  1. Identifying the Supplier – July 2019

TM Eye’s undercover team initiated contact with Phelps to probe her wholesale supply chain. Phelps provided the details of Blake Williams, the group’s primary supplier, and a meeting was arranged between Williams and an undercover detective. On July 11, 2019, Williams met the detective at The Halfway House pub on the A127 in Essex. During the meeting, Williams revealed that he had sold over 1,000 pouches of fake tobacco in June alone, purchasing them at £3 each and reselling them for £8. He further admitted to having access to large quantities of counterfeit cigarettes being imported from Spain. The detective purchased 100 counterfeit pouches from Williams for £5 each.

  1. Surveillance of Blake Williams – July 2019

Following the transaction, TM Eye’s surveillance team tracked Williams to his residence in a white BMW, monitoring his movements as he retrieved the counterfeit goods. On July 25, 2019, another meeting was arranged where Williams offered to sell larger quantities of fake tobacco at a reduced rate of £4 per pouch. Discussions led to Williams agreeing to supply 500 pouches of counterfeit Amber Leaf tobacco.

  1. Large-Scale Supply Operation – August 2019

On August 9, 2019, Williams arranged a meeting with TM Eye’s undercover operative at TK Maxx in Lakeside, Essex. Williams arrived in a different BMW, accompanied by a female driver. During the meeting, Williams disclosed that he could supply up to 1,000 counterfeit pouches but would need to collect them from his supplier in northern England. TM Eye’s surveillance team followed Williams as he traveled north, tracing him to a KFC car park in Walsall. There, Williams met two male suspects in a red Ford Transit van and received two large boxes containing counterfeit tobacco.

  1. Arrest and Seizure – August 9, 2019

Later that evening, Williams returned to Essex, where he was intercepted by police at Upminster Rugby Club, following a tip-off from TM Eye. The boxes in Williams’ car were found to contain 525 pouches of counterfeit Amber Leaf tobacco. The goods were seized by police and later handed over to TM Eye as evidence. On October 28, 2019, Williams was served with a criminal summons. The loss to HM Revenue and Customs (HMRC) from the sale of the counterfeit goods was estimated at £24,960.00.

Sentencing – January 19, 2020

Blake Williams, Mollie Phelps, and James Cox appeared at Barkingside Magistrates Court on January 19, 2020. All three pleaded guilty to charges related to the sale and attempted sale of counterfeit goods.

  • Blake Williams received an eight-week suspended prison sentence, 100 hours of community service, and was ordered to pay £500 in court costs and a £120 victim surcharge.
  • Mollie Phelps was sentenced to a 12-month community order and required to pay a £90 victim surcharge.
  • James Cox was fined £120 and ordered to pay £150 in court costs, as well as a £30 victim surcharge.

Impact

This successful prosecution marked a major victory in the fight against the illicit tobacco trade in the UK, highlighting the effectiveness of TM Eye’s undercover and surveillance operations. The gang’s activities had posed a significant threat to public health, with counterfeit tobacco often containing harmful substances such as asbestos and rat droppings. The gang’s operations also contributed to substantial tax losses, with HMRC estimating that the sale of illicit tobacco costs the UK around £2.5 billion annually.

Conclusion

TM Eye’s Illicit Tobacco Team, supported by its Dedicated Undercover Unit and surveillance team, played a pivotal role in dismantling this criminal network. The operation underscored the importance of private criminal prosecutions in supplementing public law enforcement efforts to combat organized crime. Through their advanced surveillance techniques and experienced undercover operatives, TM Eye was able to secure the convictions of individuals involved in the sale of dangerous counterfeit goods.

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Year:

2019 - 2020

Location:

Essex, UK

Client:

Japanese Tobacco International (JTI)