A man has failed in his bid to have over €7,000 cash returned to him following a significant seizure of illegal cigarettes at his home in Letterkenny.
Revenue officials found 13,800 unstamped cigarettes at the home of Michal Kostuch at New Line Court in Letterkenny five years ago.
Kostuch sought the return of €7,200 which was also located in the raid carried out by Revenue officials. However, Judge John Aylmer, presiding at Letterkenny Circuit Court, said he was satisfied that the money was the proceeds of criminal activity.
Ms Fiona Crawford BL, for the State, applied for the forfeiture of the cash, which she said either directly or indirectly represented the proceeds of crime.
In October 2018, Customs officers became aware of a package arriving at Dublin Port which was addressed to a property in Letterkenny. A quantity of 8,200 unpacked cigarettes were in the package.
A ‘controlled delivery’ was made to the address in Letterkenny and a search warrant was subsequently obtained at Ballyshannon District Court.
During the search, officers found a total of 13,800 cigarettes, 400 of which were located in a car parked on the driveway. The others were found in two children’s bedrooms and the master bedroom.
Ms Crawford told the court that the total value of the cigarettes was €6,500. Officers also found €7,200 in cash concealed under a box of clothes hangers in the master bedroom.
Revenue officials wrote to Kostuch and asked for a full account of the source of an intended use for the car as well as documentary proof.
In an email to the Revenue, Kostuch said that due to the fact that he and his partner were expecting a third child he asked his mother-in-law, Ms Anna Hrusciel, for money to help purchase a new family car. He said he received the funds while on a trip to Poland.
Ms Hrusciel attended the hearing via video link from her home in Poland and was aided by a Polish interpreter who was present in court.
The money was seized and the court heard that several applications were made to the District Court to have the sum returned.
Initially, Kostuch told a Revenue officer in his home during the search having been told that the cash was being seized: “That is my savings. My boss pays me in cash all the time, not to the bank.”
In a later-sworn affidavit, Kostuch said the cigarettes were brought back to Ireland from holidays and said he would sell small quantities to friends and acquaintances.
He said the 30,000 Polish Zloty was converted to euro currency in order to purchase a car. The exchange rate was disputed by the prosecution.
In January 2019, Kostuch bought a car, paying €8,450 – €7,900 of which was paid in cash and a further €550 paid by card. Kostuch said he was ‘concerned’ that if a large sum entered his bank account that he would lose his Social Welfare payments. The court heard that he was in receipt of €250 per week from the State.
Ms Hrusciel, in an affidavit sworn in June 2021, said Kostuch sought help in buying a car and she agreed to assist him. Ms Hrusciel got a loan from a bank in Poland and gave Kostuch the funds.
Ms Hrusciel, who works in a ‘seasonal’ fruit and vegetable job in the Netherlands, said she has asked Kostuch for the balance of money to be repaid. So far, €1,000 has been paid back. He assured his mother-in-law that he would give her any money recouped from his Circuit Court application.
Barrister for Kostuch, Mr Timothy Morrow BL, said his client was ‘quite scared’ when the Revenue officials came to his house and there was also ‘an issue of translation’.
A series of ATM withdrawals, some for €1500 and others for €1000, totalling €6,500 were said to be simply how Kostuch operated and no other sums of money were involved.
Judge John Aylmer noted that Kostuch was ‘silent’ about what he did from the proceeds of selling cigarettes. Judge Aylmer said the prosecution has established as a matter of probability that the money seized was the proceeds of the illicit trade in cigarettes, which Kostuch previously pleaded guilty to.
Judge Aylmer described the money found in the wardrobe was ‘extremely suspicious’. “He immediately provided an explanation and made no mention of being the proceeds of a loan for a car,” Judge Aylmer said. “Retrospectively, he tried to explain it away and said he was afraid that he could incur a tax liability. I don’t find that plausible or persuasive in any way.”
Judge Aylmer said nothing before the court from Kostuch raised a doubt in his mind. Judge Aylmer ordered the forfeiture of the money as the proceeds of crime. Noting that the State was put to a lot of effort in the case, he also awarded costs.
In 2021, at Letterkenny District Court, Kostuch was fined €2,500 for the possession of the illegal cigarettes.