A British businessman who was caught on camera admitting to selling luxury perfume to Russia in violation of sanctions will not face criminal charges, the BBC has learned. David Crisp, the Surrey-based entrepreneur, confessed to an undercover investigator that he had disregarded government sanctions by selling £1,000-a-bottle “Boadicea the Victorious” perfume in Russia.

The BBC is now able to reveal exclusive footage of the conversation, which had previously only been shared in court. Crisp, who was arrested by HM Revenue and Customs (HMRC) in 2023, was under investigation for allegedly concealing over £1.7 million in illegal sales. However, HMRC dropped the case earlier this year, despite the discovery of evidence linking him to continued trade with Russia.

Crisp denies knowingly breaching sanctions or hiding his trade with Russia. According to sources, no UK criminal convictions have been made for violating trade sanctions on Russia since the invasion of Ukraine nearly three years ago.

Senior Conservative MP Sir Iain Duncan Smith criticized the lack of criminal action, calling it a “bad signal” and a sign that the UK is a “soft touch” when it comes to enforcing sanctions.

The controversy began when Crisp, known for his dealings with high-end perfumes and celebrity clients, unwittingly spoke to a private investigator posing as a businessman in a Dallas hotel lift in July 2023. The investigator later filmed a conversation in which Crisp confessed to continuing his Russian sales despite the sanctions. “We’re doing really well… we ignore government edicts,” Crisp said during the exchange.

In the wake of Russia’s invasion of Ukraine in February 2022, the UK introduced sanctions banning trade with Russia in various sectors, including perfumes. Violating these regulations can result in penalties, including up to ten years in prison. Following the imposition of sanctions, Crisp had initially agreed with his business partner, David Garofalo, to stop trading with Russia. However, Garofalo grew suspicious after a whistleblower alleged Crisp was still selling perfumes in Moscow.

Garofalo hired private investigators who uncovered evidence that Crisp had continued to ship goods to Russia, even after the sanctions were in place. The investigators discovered paperwork linking shipments to recipients in Russia and products for sale in Moscow that had been launched after the sanctions were introduced.

Garofalo reported Crisp to HMRC, which launched a criminal investigation. A High Court judge later ruled that Crisp should be removed from the company, citing the undercover video and evidence of concealed transactions.

Despite this, HMRC dropped the investigation in July 2024, stating it would take no further action. The decision has sparked anger from Garofalo, who says the evidence was irrefutable. HMRC has since indicated that while sanctions violations are serious, they have issued fines but not criminal prosecutions for such breaches since the war began.

Experts, including Sir Iain Duncan Smith, have raised concerns that the UK’s failure to prosecute violators sends the wrong message. “If we don’t prosecute, who the hell is deterred from breaching sanctions?” he asked.

Tim Ash from Chatham House also expressed concern, noting that without strong enforcement, the allure of profit from trading with Russia remains too tempting for some. “The reality is, the allure of doing business with Russia, the huge profits to be made, are too much for some people,” Ash said.