Fourteen people have been arrested on suspicion of laundering the proceeds of a £40m alcohol fraud.

A 43-year-old man from Loughton, 49-year-old from Chingford and Ilford man aged 25, were among others from London, Kent, Cardiff, Berkshire, West Midlands and Lancashire to be arrested in the dawn raids by HM Revenue and Customs (HMRC) yesterday.

Cash totalling £650,000 and five lorry loads of beer and wine were seized as well as the removal of computers and personal and business records during the property searches.

Four residential and two business properties were searched in Loughton and Ilford.

The group were allegedly diverting non-duty paid alcohol and selling it in the UK.

Assistant Director of Criminal Investigation for HMRC, Alan Tully, said: “This is a major investigation into what we suspect is a well organised and professional attempt to launder the proceeds from a significant alcohol fraud and steal £40 million from the UK economy.

"We are committed to stamping out alcohol fraud, which drains around £1 billion from public finances each year, affecting public services and legitimate retailers who have to compete with the illicit market.”

Investigations are ongoing.

Anyone with information about people involved in alcohol smuggling and tax evasion is encouraged to contact HMRC on 0800 59 5000.