More than 20 suspects arrested, 2 production lines seized, case value exceeds 50 million yuan: Shang

The police stated that the involved e-cigarettes are "three no products," with even the ingredients not specified. Photo provided by the Baoshan Branch of the Shanghai Public Security Bureau

On May 31, China News Network reported (Reporter Li Shuzheng) that brand logos, a variety of flavors, and exquisite packaging have led to the quiet emergence of these "disguised" e-cigarettes on certain short video platforms and in some bars' "hidden" menus.

On the 31st, the Baoshan police in Shanghai revealed that during the "Sword 2023" special operation, they dismantled a gang involved in the production, transportation, and sale of non-standard e-cigarettes, arresting more than 20 suspects, seizing 2 production lines, and confiscating over 55,000 e-cigarettes and accessories, along with more than 50 processing machines, with a case value exceeding 50 million yuan (RMB, the same below).

In April this year, police discovered during an online law enforcement patrol that a streamer was illegally selling suspected fruit-flavored e-cigarettes on a short video platform. Upon investigation, it was found that the blogger, who has 30,000 followers, posted numerous promotional videos for fruit-flavored e-cigarettes that are explicitly banned from sale by the state and conducted online sales. Based on the content of the short videos, police conducted in-depth investigations and, after extensive interviews, discovered that the man filming the sales videos, Zhao, sourced his products from a "distributor" named Cao.

The Economic Investigation Team of the Baoshan Branch of the Shanghai Public Security Bureau immediately collaborated with the Miaoxing Police Station to arrest the suspect Cao, who was involved in illegal operations, and seized a large quantity of fruit-flavored e-cigarettes on-site, approximately 100 boxes and nearly 4,000 sets, with a case value of about 3 million yuan.

Police arrested over 20 suspects involved in illegal operations, seizing 2 production lines. Photo provided by the Baoshan Branch of the Shanghai Public Security Bureau

According to Cao's confession, the seized e-cigarettes were ordered by a pair of siblings with the surname Zou for external sale. Investigations revealed that since October 2022, the Zou siblings had been procuring e-cigarettes from a source in Guangdong without the relevant tobacco business license, and then developed agents through their social circles to promote and sell a large quantity of various flavored e-cigarette products. Due to suspected illegal business operations, the Baoshan police in Shanghai immediately took criminal coercive measures against Zhao, Cao, and the Zou siblings.

The involved e-cigarettes are "three no products," with even the ingredients not specified, relying solely on their novel and unique appearance and colorful flavors to attract young people's attention. So where did Zhao's disposable flavored e-cigarettes come from?

The police used the financial and logistical flow of the sales end, including Zhao and others, as a breakthrough for investigation, discovering that the source of these e-cigarettes was all from a certain area in Guangdong. Thus, the police inferred that Guangdong should be the production source of this batch of e-cigarettes, prompting the Baoshan police to immediately travel to Guangdong for investigation.

The Baoshan police in Shanghai dismantled a gang involved in the production, transportation, and sale of non-standard e-cigarettes. Photo provided by the Baoshan Branch of the Shanghai Public Security Bureau

With the cooperation of local police, after several days of meticulous investigation, a criminal gang led by Shen, which established sourcing channels, and Gao and others responsible for marketing, involved in the production, sales, and transportation of non-standard e-cigarettes, came to light. After fully grasping the roles, criminal facts, and activity characteristics of the gang members, on May 25, the Baoshan police launched simultaneous operations in Shanghai and Guangdong to arrest the involved personnel, successfully dismantling the illegal production and sales den, arresting over 20 suspects involved in illegal operations, seizing 2 production lines, confiscating over 55,000 e-cigarettes and accessories, and more than 50 processing machines, with a case value exceeding 50 million yuan, cutting off a multi-level underground illegal sales network of e-cigarettes involving nearly 10 provinces and cities including Guangdong, Shanghai, Jiangsu, and Zhejiang.

Investigations revealed that Shen, without obtaining a national tobacco license, was producing fruit-flavored e-cigarettes that are explicitly prohibited by the state, and then selling them at a markup through intermediaries like Gao via short video platforms, social circles, and bars. Additionally, to meet customer demands and vanity, manufacturers designed e-cigarettes, which cost around 40 yuan, to look like luxury products and sold them at a high price of 1,288 yuan, thus making huge profits. #p# Page title #e#

Currently, Shen and over 20 suspects have been subjected to criminal coercive measures by the Baoshan police in Shanghai for suspected illegal business operations, and the case is under further investigation. (End)