Illegal cigarette factory allegedly defrauded Danish state of $9 million

Danish authorities have charged five people in connection with an illegal cigarette factory accused of defrauding the state of 62 million Danish kroner (approximately $9 million USD).

The National Unit for Special Crime (NSK) of the Danish police announced that four men have been arrested and are facing detention hearings. According to police, two of these men established a professional cigarette factory in central Jutland, producing at least 32 million cigarettes. The unpaid tobacco duties are believed to be the source of the alleged fraud.

Two other men are accused of storing 9.6 million illegally produced cigarettes and materials for an additional 21.3 million. A fifth suspect, a woman, faces charges of money laundering at least 185,000 Danish kroner through the issuance of false invoices.

Police have been investigating the case since the summer of the previous year. A Lithuanian man is already in custody, charged with transporting 1 million illegal cigarettes. This case follows several other instances of illegal cigarette factories discovered in Denmark, with one of the largest, involving approximately 216 million cigarettes, currently being heard in court.

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The 62 million should be unpaid tobacco duties.