A CHELMSFORD businessman has hit back at claims that he was involved in an £8.5 million counterfeit tobacco-making conspiracy.
Paul Percival, 52, of Cowdrie Way, Springfield, was found guilty at Nottingham Crown Court last week and handed a 21-month prison sentence, suspended for 18 months, for importing tobacco-shredding machines from Eastern Europe and facilitating the purchase of raw-leaf tobacco.
The 13-strong gang set up plants across the West Midlands to produce counterfeit hand-rolling tobacco using the name of a well-known brand, but were caught as part of a four-and-a-half year operation by Her Majesty's Revenue and Customs, which says it cost the country £8.5m in lost tax.
It is illegal to import tobacco without paying tax.
But in an interview with the Chronicle, Mr Percival, a 52-year-old finance and insurance manager, said that as far as he was aware, the machine was not going to be used for tobacco.
"A gentleman that I have done business with before asked me if I would fund an industrial shredder – it's a slightly unusual piece of equipment and the gentleman did not have the funds," he claimed.
"He was going through a rough time and asked if I would I arrange the funding for it. It arrived here in April.
"I only got involved for the last three months that they were running the investigation," added Mr Percival, who was also ordered to carry out 240 hours of unpaid work and given a home curfew from 9pm to 6am for six months.
Mr Percival said that, in his line of work in trade finance, to be asked to finance an import of a machine is not unusual.
He says the first thing he knew about a problem was when HMRC contacted him by letter.
"They impounded the machine straightaway and they wrote to me and asked to come and see me in early May," he said.
"It got impounded – it has not been active or put into use."
Last week, 12 others were sentenced, including one other Essex man, Simon Howard of Swanbourne Drive in Hornchurch who got the same sentence as Mr Percival, while mastermind Phillip Hall was sentenced to two years in prison, to run concurrently.
Gary Lampon, assistant director of criminal investigation for HMRC, said: "This was a well-organised international crime gang that we have disrupted and brought before the courts.
"They had no regard for the money they stole from public finances and honest taxpayers, which has been substantial."
But Mr Percival added: "For the HMRC to say I'm taking money off the taxpayer is wrong. I have lost £100,000 rather than earned anything.
"Without the support of my wife and my friends I could not have got through it.
"I'm just lucky enough to have got family around me and have good friends.
"It was at least a year of investigation before they charged me.
"It's been hanging over my wife's head and my family for over three-and-a-half years now.
"This is the first time I have ever financed one of these and it will be the last time."
