A former fitness boss and his long time business associate were last night facing jail after they were found guilty of smuggling 2.6 million cigarettes into the North-East.

Carlo Citrone and William Howard were found guilty by a jury at Teesside Crown Court of evading £413,587 in excise duty following a nine day trial.

The illegal haul of Crown make cigarettes - one of the largest recovered in the North-East - were found by customs officers following a raid on industrial premises in Newton Aycliffe, County Durham in March 2002.

They had originated in Vietnam and shipped from Cambodia into the UK through Southampton docks, where they were uncovered and a surveillance operation put in place.

Citrone, 38, of Springwell Village, Gateshead, was said to be the "lynchpin" in the smuggling operation, while Howard, 41, of Northside Close, Shildon, County Durham, took delivery at his warehouse in Aycliffe, where he ran a haulage firm WH Transport.

Both men had known each other for 18 years through contacts in the fitness and body building trade.

Citrone was the managing director of Avanti Fitness in Gateshead, but later became a professional poker player.

Adjourning the case for pre-sentence reports, Judge George Moorhouse said: "This is a serious matter involving the loss of duty and will inevitably end up with custodial sentences."

The judge granted both conditional bail and agreed to a prosecution application for a confiscation hearing.

Citrone and Howard must also surrender their passports within 48 hours.

Gordon Miller, assistant chief investigations officer with Customs and Excise, said: "We are very pleased with this result and it shows the determination we have to detect and prosecute those involved in serious smuggling offences.

"The proceeds of cigarette smuggling can be used to commit further crime rather than the money going to the exchequer to support hospitals and schools."

The trial heard how documents accompanying the consignment claimed that the contents were the personal belongings of a man called 'George Hughes' who was moving from Cambodia to the North-East.

But the Crown said this identity was invented to hide the scam.

They pointed to the "sheer number" of phone calls which took place between both men and the company involved in shipping the cigarettes and also a fax sent when Citrone was staying at a hotel in Vienna showing the name George Hughes in relation to the shipment.