European operation dismantles €10 million illicit cigarette network in Spain

Fifty people have been arrested and six clandestine tobacco factories dismantled following a major international operation targeting the production and distribution of counterfeit cigarettes across Europe.

European and national law-enforcement agencies have dismantled two international criminal organisations allegedly responsible for operating a multimillion-euro illicit tobacco supply chain from Spain.

The operation resulted in the seizure of more than 20 million cigarettes and 38.4 tonnes of tobacco leaf and cut tobacco, with a preliminary estimated value exceeding €10 million.

Spanish officers conducted 23 searches at homes, commercial properties and industrial warehouses across Alicante, Cuenca, Huelva, Murcia, Seville and Toledo. Fifty people were arrested, while seven suspects were reportedly remanded in custody.

Authorities also seized cigarette-manufacturing and packaging machinery, 18 vehicles, encrypted electronic devices, approximately €170,000 in cash and several firearms.

The operation was led by Spain’s Guardia Civil, with intelligence and operational support from the European Anti-Fraud Office, OLAF, and Europol.

Law-enforcement bodies from Poland, Portugal and Lithuania were directly involved, while agencies from several other European countries contributed to the wider investigation and exchange of intelligence.

Six clandestine factories uncovered

According to the Guardia Civil, investigators identified six illegal tobacco factories, four of which were operational at the time of the raids. The remaining two were inactive but reportedly contained equipment and evidence linked to illicit cigarette production.

The factories were organised into separate areas for manufacturing, packaging and storing cigarettes. Some premises also contained accommodation where workers allegedly lived permanently.

Spanish investigators said factory managers were provided with comparatively better accommodation, while other workers were housed in overcrowded and precarious conditions inside the industrial sites.

The factories were allegedly capable of producing up to 7.8 million cigarettes per day during periods of full operation.

The counterfeit products imitated well-known commercial cigarette brands and were believed to have been intended for distribution not only within Spain, but also in Portugal, France and potentially the United Kingdom.

Investigation developed over several years

The Guardia Civil said the investigation had its origins in intelligence received more than seven years ago from Europol and authorities in Poland and Lithuania.

Investigators initially focused on a Polish national who had allegedly been involved in similar criminal activities since 2016 and who frequently moved between different locations in Spain.

Earlier police operations conducted in 2021 and 2023 helped investigators develop a more detailed picture of the organisations’ structure, logistics and international connections.

The two investigations, known as operations Vernisa and Maidan-Cigalike, eventually identified clandestine production centres and a distribution network believed to have supplied both the organisations under investigation and other criminal groups.

Two of those arrested were wanted by the Polish authorities and have since been transferred into Polish custody.

OLAF supplied cross-border intelligence

OLAF said it provided operational intelligence concerning the movement of tobacco materials, manufacturing machinery, vehicles and other equipment destined for the illegal factories.

The information allowed national authorities to monitor the suspects’ logistical activities and coordinate investigative action across several jurisdictions.

OLAF also said intelligence exchanged during the investigation resulted in the identification of additional suspects who had not previously been known to law-enforcement authorities.

OLAF Director-General Petr Klement said the operation demonstrated the connection between illicit tobacco, lost tax revenue and organized crime.

“While smoking is dangerous, smoking counterfeit cigarettes is even worse,” he said.

“On top of the harm to health, every illicit cigarette robs taxpayers and rewards organized crime. That’s why OLAF is there, to detect illicit trafficking and to contribute with cross-border intelligence and coordination.”

Wider European co-operation

Alongside OLAF, Europol and the Guardia Civil, the operation involved Poland’s Central Bureau of Investigation, Portugal’s National Republican Guard and Lithuania’s Customs Criminal Service.

Authorities from Romania, Italy, France, Ukraine, Slovakia, Estonia, Latvia, the Czech Republic and Germany also contributed to the investigation, according to the Guardia Civil.

The case illustrates the increasingly international character of illicit tobacco production, in which raw tobacco, machinery, labour, packaging and finished products may move through several countries before reaching consumers.

Illicit cigarette manufacturing also deprives national governments and the European Union of customs and excise revenue, while providing organised criminal networks with a potentially lucrative source of income.

Investigations remain ongoing, and both OLAF and the Spanish authorities said further enforcement action could follow.

All those investigated or arrested are presumed innocent unless and until found guilty by a competent court.

This article is based on official information released by the European Anti-Fraud Office and Spain’s Guardia Civil.

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