‘Gucci’ gang laundered millions in drugs cash at London scrapyards

A London organised crime group who used scrap metal dealers to launder millions for cocaine barons across the UK has been jailed.

Neelen Balarajah, 34, also distributed cannabis and attempted the fraudulent acquisition of £1.5million of government grants.

Detectives seized £1.2m in cash, £350,000 of assets as well as a £200,000 diamond encrusted Rolex Daytona.

In January 2022, a National Crime Agency surveillance team caught Balarajah taking possession of a Gucci embossed box containing over £20,000 from their associate Hitesh Vadolia.

When challenged, he attempted to escape by driving his car at arresting officers who had to use an unmarked vehicle to block him.

Using detailed analysis of telecoms data, investigators identified Rickinder Hare, 36, of William Street, Knightsbridge, had organised the exchange.

He was subsequently arrested on July 20, 2022 following a two-year NCA investigation.

Officers searched Balarajah’s home on Grove Road, Pinner, Middlesex, throughout the night and found a substantial amount of cash, herbal cannabis and cocaine.

St Albans Crown Court heard numerous empty wrappings also tested positive for traces of cocaine.

Evidence retrieved as a result of investigations into the activities of Hare and Balarajah led to the identification of other cash couriers and lower level members of the gang who have been separately investigated by other police forces.

Surveillance revealed the likely use of scrap metal dealers to help launder cash.

A courier was observed collecting bags believed to contain cash and immediately visiting a commercial premises for scrap and corporate waste.

Cocaine and cash found during raid (National Crime Agency)

It is suspected that the cash was used to pay criminals for stolen metal.

Co-ordinated action was taken against the scrap metal dealer by the British Transport Police, HMRC and the Environment Agency.

Jason Hulme, a senior manager for the NCA’s International Corruption Unit, said Hare and Balarajah’s group also attempted to secure access to government grants and funding to remove waste from a commercial site they controlled.

Investigators found they did not have the capacity to remove and legally dispose of the waste, and were looking to divert the funds, most likely to other criminal ventures.

Cash courier Vadolia, of Linkways, Stevenage, Hertfordshire, faced multiple money laundering charges in connection with the transfers of cash totalling £270,000 but passed away before trial.

Balarajah pleaded guilty on the first day of trial after images on his phone revealed the empty wrappings found in his home had contained kilo blocks of cocaine.

On Monday, he was sentenced to 13 years and six months imprisonment for money laundering and conspiracy to supply Class A and B drugs.

Hare was sentenced to 12 months imprisonment, suspended for two years, and 400 hours of community service. He was found guilty in February of money laundering after a week-long trial.

Mr Hulme said: “This crime group had tentacles reaching into many different activities, and were making millions from drugs and money laundering.

“The direct threat posed to the public, and the public purse, has been prevented, but our investigation has identified a number of individuals closely linked to the group, as well as connections to politically exposed individuals overseas.

“We will continue investigating to determine if any of these were associated with their criminal activity.”