A father and son of dual nationality are facing fines of up to Lm1.3 million after being charged with the illegal importation of 15 million cigarettes, the largest haul of contraband cigarettes ever seized by Maltese police and customs officials.

Arthur Ciancio, 59, and his 30-year-old son Aaron Ciancio, both from Mellieha, pleaded not guilty yesterday to charges of organised crime, conspiracy to commit a crime and the illegal importation of 15 million cigarettes, worth Lm254,673. It is alleged that the two men failed to pay Lm647,323 in excise duty and Lm162,002 in VAT on these cigarettes.

As directors of Liberty Merchants Ltd, the two men, who hold both Maltese and Australian passports, also denied forging a public document and making malicious use of it and defrauding the Maltese government. They also pleaded not guilty to making false declarations.

The bill of lading of the containers in which the contraband cigarettes were found named the two men as the rightful consignees. This bill claimed one of the containers was carrying promotional toys while the other was supposed to have been transporting giftware.

Prosecuting inspector Ian Joseph Abdilla opposed bail for both men because, he said, there was an imminent danger of them absconding, considering that the police had traced residences and bank accounts belonging to them in Greece and the UK, in addition to those in Malta and Australia.

“If found guilty, they can face a maximum of seven years in prison and fines of up to Lm1.3million,” said inspector Abdilla, aiming to show the gravity of the case. He also declared that the investigation has still not been closed and it could lead to more large hauls of contraband cigarettes in the near future.

“The reputation of Malta is at stake on an international level,” the inspector told presiding magistrate Dennis Montebello, while noting that the men are being accused of organised crime and conspiracy.

In defence of her clients, Dr Josette Grech claimed that they both have strong ties in Malta and she noted that Aaron Ciancio also has a girlfriend of Maltese nationality. The magistrate noted that Aaron had not travelled abroad in the past year.

After reviewing the arguments of both the defence and the prosecution, Magistrate Montebello chose to remand Arthur Ciancio in custody, but granted his son bail against a Lm10,000 personal guarantee. He also ordered Arthur Ciancio to pay a Lm10,000 deposit in cash.