Illegal Traders

Did you know as a commercial landlord, you could be prosecuted for the illegal activities of your tenant?

If a landlord ‘knows or suspects’ that their property is being used for criminal activity and fails to act, they are open to potential prosecution, imprisonment and or fine, and any rent collected may be subject to a confiscation order under the Proceeds of Crime Act 2002.

On January 18th 2019, Leonardo Viscomi (61), was prosecuted at Lincoln Crown Court for two offences of knowing or suspecting that his property, European Foods in Lincoln, was being used for criminal activity, mainly the sale of illicit tobacco and alcohol.

Judge Watson, who presided, said it was clear that Mr Viscomi knew of the criminal activity taking place at his premises because he had been specifically told by Trading Standards. He had received lots of correspondence, which detailed the activity and the pitfalls of continuing to accept rent payments.

With this in mind, and although meeting the custody threshold, he handed Mr Viscomi a suspended sentence and 150 hours unpaid work.

A timetable was set for a confiscation hearing under the Proceeds of Crime Act. It is intended that some, or all, of the rent Viscomi received over the previous six years be subject to confiscation.

Andy Wright, Principal Trading Standards officer at Lincolnshire County Council, said: “This is the first prosecution of its type in the country. I am pleased that this has now provided a model for an enforcement strategy, not only in Lincolnshire, but across the East Midlands region.

Mr Wright added: “We are aware of premises across the county which have an extensive history of criminal activity involving illicit cigarettes and alcohol. Some of those landlords have already been contacted. It is our intention that all will be made aware of what is happening at their premises in the same way as we did with Mr Viscomi.”