Illegal Exporter Ordered to Repay Criminal Profit

November 21, 2014

The director of a Cambridgeshire company who ignored trade sanctions and exported over £3 million worth of banned products has been told that he and his company must pay over a total of £1.14 million of criminal profits within six months.

Gary Summerskill, from Burwell in Cambridgeshire, must pay £68,000 within six months or serve a further 15 months in jail. His company, Delta Pacific Manufacturing Limited, was ordered to pay £1,072,000.

Summerskill was jailed for 30 months in March 2014 after an investigation by HM Revenue and Customs (HMRC).

During the investigation HMRC found he had attempted to conceal the illegal export of alloy valves to Iran. Alloy valves are currently subject to an export ban to various countries including Iran because of their potential to be used in the construction of weapons.

Peter Millroy, Assistant Director, Criminal Investigation, HMRC said:

“Summerskill knew that he was acting illegally – he manipulated a system which has been put in place to protect public safety simply to line his own pockets. He has not only paid the price by losing his liberty but he now has to pay back the money he has made from his criminal activities or face more time in jail.

“Our work doesn’t stop with sentencing – we will pursue criminal profits to reclaim them for the taxpayer and the UK economy.”

Delta Pacific Manufacturing Limited made three illegal shipments of alloy valves, valued at £3.4 million, to Iran without an export licence. Summerskill attempted to skirt the ban by diverting the components through Hong Kong and Azerbaijan.

HMRC investigators found evidence that Summerskill was fully aware that the final destination of the goods was Iran and that they were subject to an export ban.

Notes for editors

1.  Gary Summerskill (DOB 01/12/1959) of High Street, Burwell, Cambridge.

2.  A confiscation order was made today (21 November 2014) at the Central Criminal Court (Old Bailey) in London.

3.  Gary Summerskill was charged with exporting controlled goods contrary to section 68(2) of the Customs and Excise Management Act 1979. He pleaded guilty to three counts and was sentenced on 14 March 2014 at the Central Criminal Court to 30 months in prison.

4.  Summerskill was the Managing Director of Delta Pacific Manufacturing Limited, based at Broadpiece, Soham, Cambridgeshire. The company manufactures valves cast in carbon steel, stainless steel and nickel chrome alloy for use in the petrochemical industry.

5.  The company was charged with three counts of exporting or shipping as stores alloy valves from the United Kingdom, with intent to evade the prohibition or restriction in force with respect to these goods by virtue of EC Regulation No 428/2009 Article 4. Fines of £225,000 were imposed on the company at a hearing on 14 March 2014 at the Central Criminal Court.

6.  The UK operates an Export Control licensing regime for strategic goods such as military items, dual use items and goods which can be used in weapons of mass destruction (WMD) programmes. This licensing regime is part of an international framework and is based upon various international agreements. The UK regime is administered by the Department for Business Innovation & Skills (BIS). Certain breaches of the UK export control regime are criminal offences and the investigation of these offences is the responsibility of HMRC.

7.  Follow HMRC’s press office on Twitter @HMRCpressoffice