Farmer on trial for laundering diesel

A prominent farmer based in the northeast has gone on trial in Dundalk Circuit Court, on a charge relating to an oil-laundering…

A prominent farmer based in the northeast has gone on trial in Dundalk Circuit Court, on a charge relating to an oil-laundering plant uncovered by Customs and Excise officers.

The jury heard it had the capacity to produce 100,000 litres of laundered diesel a week, which is equivalent to a loss to the Exchequer of approximately €44,000 a week in unpaid excise duties.

The accused, John Hoey (48) of Williamstown, Castlebellingham, Co Louth, has pleaded not guilty to a charge of keeping on his lands a series of items, including storage tanks and a 40 foot curtain-sided trailer, which are used in the laundering of marked mineral oil.

The offence under the Finance Act 2001 is alleged to have happened on April 16th, 2003, at his home.

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Prosecutor Kevin Seagrave said that as the owner or occupier of the lands, Mr Hoey is under law presumed responsible for the goods found, unless it is established to the contrary.

By purchasing rebated marked mineral oil and then illegally removing the marker or colour that identifies it as such, it can then be sold on as auto-diesel, which is not rebated.

Customs and Excise officer Michael Hannon said that, based on confidential information from a reliable source, he obtained a warrant to search the farm premises.

When he called to the accused man's house and explained why he and other customs officers were there, Mr Hoey said he did not have keys to the large grain shed where the oil laundry was found.

In the shed officers recovered sulphuric acid, five storage tanks, a compressor, four electric pumps, cotton wool and other filters and the 40ft trailer, as well as a number of large plastic containers used to collect the waste product from the process.

Some 58,000 litres of diesel were also recovered.

Mr Hoey told him he had leased the shed to two men.

"He expressed surprise at what was discovered and said he was not aware this was going on," Mr Hannon said.

However, in reply to Pat Purcell, defending, Mr Hannon said Mr Hoey had told him that he did not want to know what was in the shed.

The trial continues before Judge Pat McCartan.