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A pair of dock workers smuggled cigarettes into the UK from a ship docked in Sheerness Port by hiding them in bags of rubbish.
But Colin Lay, 53, and Shane Pilkington, 49, were caught red-handed by customs officers with 32,600 Marlboro and L&M cigarettes.
Both men, from Sheerness, have since been convicted by Maidstone Crown Court.
Alan Tully, assistant director of HMRC's fraud investigation service, said: “Lay and Pilkington abused a position of trust believing that being dock workers meant making easy money by smuggling.
"Now they know how wrong they were and they’re paying the price with a criminal record.
“The illegal tobacco trade takes money away from public services and honest, hardworking shopkeepers.
"We will continue to disrupt smugglers and ensure there is a level playing field for legitimate businesses.”
HMRC investigators found CCTV footage from July 2015 showing Lay, of Railway Road, Sheerness, receiving five packages thrown to him by crew members on a berthed vessel, the MV Chiquita Belgie.
He later admitted these contained smuggled cigarettes.
A month later the Chiquita Belgie returned to Sheppey and Lay, who came to the port despite not working that day, was seen handing Pilkington, of Broadway, Sheerness, a small white package.
Pilkington was later seen speaking to a Chiquita Belgie crew member, who returned to the ship and placed white sacks into a rubbish skip that Pilkington moved into a warehouse.
HMRC officers raided the warehouse and found the white sacks contained the 32,600 cigarettes.
Pilkington was arrested and his jacket, which was found hidden under wooden pallets, contained a handwritten note detailing quantities of Marlboro and L&M cigarettes and £4,900 in cash.
Lay claimed the cash was for the repayment of a loan while Pilkington said only some of the money came from Lay.
“Lay and Pilkington abused a position of trust believing that being dock workers meant making easy money by smuggling" - HMRC fraud investigation service assistant director Alan Tully
Both admitted evading excise duty. Pilkington was sentenced to 100 hours unpaid work at Maidstone Crown Court today while Lay was sentenced to 135 hours.
Lay admitted evading £7,866.37 in July 2015. Charges relating to the August matter will lay on file.
Pilkington admitted evading £7,880.63 in August 2015. Charges relating to the July matter will lay on file.
The pair now face confiscation proceedings while the £4,900 in cash has been forfeited.