Garlic-scam man earns share in €1.4m veg profit
Disgraced fruit importer is barred from being a director but still benef its as 44% shareholder in f irm
THE company owned by the businessman who was sent to jail for a garlic import duty tax scam has seen profits soar since his release from prison, the Irish Mail on Sunday can reveal.
Paul Begley, 49, was sent to jail after he admitted to labelling more than 1,000 tonnes of garlic imported from China as apples, which carry a lower tax rate.
He was released from Mountjoy in 2013, and subsequently resigned as a director of the company formerly called Begley Brothers Limited.
The business was renamed Seskin Investments Limited and Begley’s wife Diane became a director on the day he stood down.
It seems the company is reaping the fruits of the resurgent economy as the latest accounts show a huge increase on its balance sheet. According to documents lodged with the Companies Registration Office in October, profits at the firm have increased from €1,072,047 in 2013 to €1,470,029 in 2014.
The accounts also show that in 2014, Begley was repaid €164,091 from his former company.
And while Begley is restricted from acting as a director for five years, he is still a shareholder of the company.
Documents show that he owns 44% of Seskin Investments, meaning he is still benefiting financially.
Paul Begley hit the headlines when it emerged that he had engaged in tax evasion for a number of years.
The fruit and vegetables importer pleaded guilty to evading the duty and later came to an agreement with Revenue to repay €1.6m.
He was sentenced to six years in prison by Judge Martin Nolan.
The tax fraud scheme was uncovered in 2007 when a Revenue officer at Dublin Port examined a container from China that should have contained 18 tonnes of apples and two tonnes of garlic but consisted purely of garlic.
It led to an investigation that showed the evasion had been going on for years and huge savings had been made by labelling the garlic as apples.
Begley accepted responsibility and fully co-operated.
Judge Nolan sentenced him to the maximum of five years on one of four counts of evasion and to one year consecutive on another count as well as disqualifying him from acting as a director of a company for five years.
Judge Nolan said what Begley did was grave and he was imposing a sentence based on the principles of punishment and deterrence to others who might attempt similar schemes.
Begley appealed, arguing the trial judge ignored the fact he had made restitution and had applied a maximum sentence, normally be reserved for the worst cases.
The DPP argued the sentence was justified and should stand.
However, Begley’s appeal was upheld and his sentence was reduced to two years. He was released from prison in 2013, having served just over a year behind bars.