A "greedy" businessman who amassed a fortune selling illegal vapes from his shops has been ordered to repay a quarter of a million pounds of his ill-gotten gains or face a return to prison. Ethan Smith, 34, previously received a 41-month sentence for operating a fraudulent business and an additional 12 months for lying to a judge about the ownership of a luxury BMW. Now, he risks another two and a half years behind bars unless he pays the confiscation order.
Swansea Crown Court heard that prosecutors believe Smith possesses "hidden assets" that financial investigators have been unable to trace. He will need to access these secret funds to satisfy the £250,000 bill. Smith was initially jailed in May 2024 for running an illegal vape operation from shops in Llanelli and Swansea, as well as an online business based at a unit on Bynea Industrial Estate. His activities came to light after Swansea Council trading standards officers conducted a test purchase at his Oxford Street store in Swansea city centre.
Illegal Vape Operation
Following the successful purchase of an illegal vape, officers seized more than 1,100 devices, but Smith promptly restocked the shop and resumed trading the next day. When contacted by phone, he was abusive toward council officers and police community support officers who had been called to the scene. At the time of his sentencing, the court heard that Smith had made £300,000 from selling illegal vapes. Judge Huw Rees noted that while the business initially appeared legitimate, it later shifted to unlawful products, driven by Smith's greed. With a 20% discount for his guilty plea, Smith received a 41-month prison term.
Perverting the Course of Justice
Following his conviction, a proceeds of crime investigation was launched into Smith's finances. During this probe, Smith was sentenced to an additional 12 months in September last year for perverting the course of justice. The offense involved his £37,000 BMW M Sport Competition car, which prosecutors believed he owned despite it being registered to someone in Scotland. Smith and his friend Marshall Hayes lied to police, claiming Hayes had purchased the vehicle. They produced a fake invoice from a garage in Leeds to support their story. Both men testified under oath in April last year, but investigators proved the invoice was forged. Smith was given 12 months, and Hayes received nine months for conspiracy to pervert the course of justice.
Confiscation Order
Smith, currently out on prison license, returned to court this month for the finalization of the proceeds of crime proceedings. The court determined that Smith benefited from his criminal behavior to the tune of £300,000. Investigators identified assets including cash, two motorboats, two caravans, and three vehicles: a Range Rover, a BMW, and a Mercedes. However, based on the turnover of his vape shops, prosecutors suspect he has additional hidden assets that remain undiscovered. An agreement was reached between the prosecution and defense regarding the available sum, leading to a confiscation order of £250,000. Smith has three months to pay, with a default prison sentence of 30 months if he fails. It is understood that the total value of identified assets falls short of the agreed amount, meaning Smith must realize undisclosed assets to meet the order.
