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Mini-Market Owners Targeted Over Criminal Activities

UK High Street Mini Market Owners targeted.

Mini-marts, ‘Ghost Directors’ and Illegal Working: What Businesses and Workers Need to Know

A recent investigation has alleged a UK-wide network of convenience stores and related businesses using ‘ghost directors’, illicit tobacco/vapes, and asylum seekers or migrants working without permission.

Whatever the truth in any individual case, the legal risks are real – and the criminal exposure is wide-ranging for workers, shop operators, landlords, accountants, and anyone lending their name to company paperwork.

Key Allegations – and Why They Matter in Law

The investigation describes mini-marts and similar outlets operating under front names, with “directors” paid simply to appear on Companies House filings.

It also alleges cash sales of illegal vapes and tobacco (including to under-age customers), hidden storage systems, and migrants working without the right to work.

If proven, conduct of this kind can engage multiple UK offences:

  • Illegal working / employing illegal workers: Immigration Act 2016 & 1971; civil penalties for employers and criminal liability where there is knowledge/reasonable cause to believe employment is unlawful.
  • Tobacco & vape offences: sale of illicit tobacco (duty evasion), non-compliant e-cigarettes (TRPR 2016), and age-restricted sales to under-18s (Children and Young Persons Act 1933; Nicotine Inhaling Products Regulations 2015).
  • Fraud & company offences: Fraud Act 2006 (false representation/abuse of position), Companies Act 2006 (filing false information), director disqualification, and trading standards breaches.
  • Money laundering: Proceeds of Crime Act 2002 (POCA) for dealing with criminal property from illicit sales or tax evasion.
  • Excise duty & tax offences: HMRC offences for evasion of duty/VAT; confiscation under POCA.

What Exactly Is a ‘Ghost Director’ — and Why Is It Risky?

A ‘ghost director’ is someone listed as an officer but not genuinely running the business.

In law, that person can still be treated as a de jure director with full statutory duties and potential criminal liability, even if they “never touched the shop”.

Separately, a person who actually manages the business while not named may be a de facto or shadow director – and also at risk.

Lending your name for a monthly fee can look like facilitating fraud, evasion, illegal working, or money laundering.

Penalties include prosecution, compensation orders, disqualification (up to 15 years), and confiscation of assets.

The Potential Consequences For Shop Owners/Operators

For anyone potentially exposed to these investigations, the consequences can be quite far-reaching.

  • Arrest & prosecution: for illegal working, illicit tobacco/vape supply, fraud, and money laundering.
  • Seizure & closure: Trading Standards and HMRC can seize stock and seek closure orders; landlords risk property-related enforcement.
  • Fines & prison: duty evasion, age-restricted sales, immigration offences and POCA can all carry imprisonment and heavy fines.
  • Confiscation (POCA): profits and assets can be confiscated; benefit figures can be high, based on turnover not just profit.
  • Licensing & professional impact: loss of any licences, banking de-risking/closures, accountant scrutiny, and long-term reputational damage.

WHAT ARE THE RISKS FOR ILLEGAL WORKERS?

Working without permission can result in detention, removal, and restrictions on future immigration applications.

Pay exploitation, unsafe workplaces, and coercion indicators can also point to modern slavery risks.

If you are threatened, underpaid, or controlled, seek urgent legal advice – you may have defences or protection routes that must be raised early.

Age-Restricted & Non-Compliant Products: A Fast Track to Prosecution

Allegations of selling to under-18s, or stocking non-compliant vapes (nicotine limits, tank sizes, labelling/health warnings) are routinely prosecuted.

One ‘test purchase’ failure can trigger enforcement; repeated failures can lead to closure orders, orders prohibiting sale, and criminal records for staff and managers.

Hidden compartments or ‘stash cars’ can be treated as aggravating features suggesting planning and sophistication.

POCA Confiscation: Why These Cases Get Expensive Quickly

Even after a guilty plea or conviction, the financial battle begins.

Under POCA, the prosecution can pursue the benefit figure from criminal conduct (often gross receipts), seek confiscation of assets (cash, vehicles, property), and apply lifestyle assumptions.

Third parties (spouses, partners, lenders) may be drawn into the dispute. Early forensic accounting and robust representation are essential to avoid unfair, inflated benefit calculations.

Mitigation & Defence — What Can Help?

  • Status & knowledge: Were you genuinely in control? Did you know (or should you reasonably have known) about illegal working or illicit stock?
  • Due diligence: Supplier checks, invoices, duty-paid evidence, age-verification policy (Challenge 25), staff training, refusals logs, and audit trails.
  • Immigration advice: If work permission is unclear, urgent immigration representation is vital; victims of exploitation may have protection routes.
  • Early engagement: Proactive cooperation, voluntary disclosures, rectification (withdrawal of non-compliant stock, enhanced checks), and repayment of duty can assist.
  • Personal mitigation: Health issues, language barriers, coercion, limited role, financial vulnerability, or modern slavery indicators.

Companies House Filings: Not a ‘Paper Exercise’

Inaccurate filings, nominee arrangements and false addresses can all attract enforcement.

Recent reforms give Companies House enhanced powers and better data-sharing with law enforcement. Treat filings as legal documents.

Accountants and advisors should avoid being drawn into suspicious arrangements; professionals face their own regulatory and criminal risks if they “look the other way”.

Under Investigation or Raided? What To Do Now

  • Get legal advice immediately before any interview under caution (even “voluntary” interviews).
  • Similarly, if arrested – seek legal representation at the earliest opportunity.
  • Do not sign statements or provide devices/documents without advice where you have a legal right to pause.
  • Preserve compliance records (supplier due diligence, training logs, CCTV, payroll, right-to-work checks).
  • Consider parallel issues: immigration, employment, HMRC, trading standards, Companies House, landlord/lease liabilities.

How We Can Help

Morton’s Solicitors provide expert defence advice for anyone facing investigations from the police, HMRC or any other governing body for all related criminal charges.

Contact our team immediately for confidential assistance and 24-hour representation. Call us now on 0161 477 1121 or email us.