Two men charged in largest cigarette smuggling case in Iceland’s history

Two men, who have profited significantly from selling e-cigarettes to Icelanders, have been charged in what is described as one of the largest smuggling cases in Iceland’s history, alongside an employee of a shipping company. Between 2015 and 2018, the two individuals are alleged to have imported over 125,000 cartons of cigarettes through a company without paying the tobacco tax, amounting to approximately 740 million Icelandic krónur.

The smuggling operation came to light a few years ago when customs officials discovered a container filled with cigarettes and e-cigarette products. Initially, the investigation was handled by local police in the capital, but due to its scale, the district prosecutor took over. In November two years ago, multiple operations were launched, resulting in several arrests, property searches, and the seizure of assets worth half a billion krónur.

The prosecutor filed charges earlier this month, which will be formally brought before the Reykjanes District Court at the end of September. It has been noted that the two men, Sverrir Þór Gunnarsson and Snorri Guðmundsson, had previously been registered as proxies for their companies and provided fraudulent information to Icelandic customs when bringing in tobacco products from Germany, Belgium, and Denmark, disguising them as protein and paper products.

The prosecutor is seeking the forfeiture of substantial assets linked to the case, including properties owned by Sverrir in Garðabær and Reykjavík, as well as financial assets found during the authorities’ operations. A hefty sum held in the district prosecutor’s account and numerous luxury watches connected to the accused are also under scrutiny.