Thirteen people were charged by the Chief Public Prosecutor of Pest County for causing great financial loss by fraud. They were running a cigarette factory without authorization in Vecsés.
The group of frauds decided to establish a cigarette factory in 2014, according to Origo.hu. They have chosen a warehouse on the outskirts of Vecsés for the purpose. They have founded phantom companies in order to rent the facility without awakening suspicion. After that, the tricky process of production has begun. They claimed machinery, devices and raw materials necessary for producing cigarettes. Then they recruited skilled labor from Bulgaria. Their workers usually received a salary of 1,000 euros, as well as free accommodation and supplies.
The actual production in the illegal facility began in January 2015. By February, the inspectors of the National Tax and Customs have appeared in the factory: they have confiscated 2,5 million cigarettes without any tax stamps, as well as 12,000 kilograms of fine-cut tobacco. The frauds caused 200 million forints (659,863 euros) of financial damage to the State of Hungary, as they should have paid this much excise tax. The employees and the personnel who were responsible for the working conditions were also charged for collaborating with the illegal factory. The courthouse of Budapest will decide their guilt.