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Launderers in the news - June 2012

20 June 2012

From financial advisors to footballers, Russian mafia to Olympic fraudsters, here is a round-up of money laundering convictions from the past two months in the UK.

Company director jailed for money laundering - Yorkshire

A Yorkshire businessman acted as banker for three fraudulent shares salesmen who controlled a boiler room syndicate that defrauded 1700 investors out of  27.5 million.

He opened bank accounts for three different companies, purportedly for property management purposes, but which were actually used for the proceeds of the fraud. He also arranged for funds to be transferred to accounts in Jersey and Malta, from which they were transferred to accounts throughout Europe, Dubai and Canada.

Following a joint investigation by the Financial Services Authority and the City of London Police, he was convicted of three counts of money laundering and sentenced to four and a half years' imprisonment.

He was also disqualified from being a company director for seven years. The other three fraudsters were jailed in August 2011 for a total of 19 years.

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Three men convicted after  12 million scam on local philanthropist - Norwich

Three fraudsters convinced a prominent local businessman that he would make a large profit from a high-yield investment scheme. He was persuaded to give the fraudsters  11.9 million, which disappeared after he transferred the money to an offshore fund.

A German church in Dortmund lost  5.6 million in a linked fraud. The fraudsters were sentenced to 26 years' imprisonment. None of the money has been recovered.

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Financial adviser convicted of laundering  9.5 million - Sunderland

A financial advisor from Sunderland who was part of an international money laundering operation has been jailed for three years.

The criminals used a network of offshore companies run by trusted associates and offshore banks in jurisdictions such as the Channel Islands and Cyprus to conceal their trail, and then transferred the cash to the UK.

Two members of the group were convicted in Germany six years ago and a Serious Organised Crime Agency (SOCA) investigation revealed the other criminals and the whereabouts of the stolen money.

To date, the equivalent of  2.78 million of assets have been frozen in the UK. Cash has also been frozen in Spain, Portugal and Australia. Other members of the group have been jailed for between two and eight years.

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Two men found guilty of Olympics fraud - London

Two men have been convicted of money laundering after defrauding the Olympics Delivery Authority (ODA) out of  2.3 million.

One of the men claimed to be a finance director of a construction company working on the Olympic Park and asked the ODA to change the bank account details to those of a company called AK Legal Solutions, which was his own account.

The ODA transferred around  2.3 million to his account, of which  2.14 million has been recovered. The men targeted numerous other Olympics-related organisations. Had all the frauds been successful, the men would have obtained around  6 million.

The men were convicted of six charges of money laundering and sentenced to over 9 years' imprisonment.

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Former footballer convicted of money laundering - Leicester

A former Leicester City player and another man have pleaded guilty to money laundering charges, specifically transferring criminal property.

The pair were charged in January 2010 after a payment of  278,372, purportedly a refund from a property deal, was transferred from Ghana to a UK bank account. The trial was suspended after documents were produced which suggested the sale was legal, but these were proved to be false after an investigation by Thames Valley police and the Ghanaian authorities.

The pair will be sentenced on 8th June 2012 [may need to be updated next week].

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Drug gang of five convicted of money laundering - Essex

A large organised crime gang from Essex has been broken up following a major operation by police. Eleven people have been arrested, charged and sentenced as part of the operation, which dismantled two organised crime groups and recovered approximately  400,000 worth of drugs and  130,000 cash. A further five individuals will be sentenced in June for drug trafficking and money laundering.

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Major criminal organisation dismantled by SOCA - Kent/London

A major organised crime gang has been dismantled after a 15-month investigation by SOCA. The gang imported, processed and sold millions of pounds' worth of cocaine. The investigation recovered  160,000 in cash and several kilos of drugs from properties in Kent and south east London. Three members of the group were charged with money laundering offences and sentenced to twenty years' imprisonment.

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Lincoln man convicted after laundering money through nail bar

A Lincoln man laundered the profits from six cannabis farms through a nail bar in Lincoln and a casino in Nottingham. He was convicted of money laundering and of acquiring and using  41,298 of criminal property.

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Man jailed for laundering money for the Russian mafia - Coventry

A man who laundered money for the Russian mafia has been jailed for two years after handing himself in to police in Coventry.

He withdrew  300,000 from various UK bank accounts that contained the proceeds of crimes committed abroad. The money was then paid into new accounts or handed to others in cash.

Despite informing the police that he had been involved in such activity for four years, he was only prosecuted for offences committed in Coventry during the last week of January this year, when he withdrew  6,300 from bank accounts belonging to two other people.

He admitted one count of money laundering and two counts of fraud.

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Couple convicted of money laundering after raid on Virgin Media - Northampton

A couple have been convicted of money laundering after transferring money from the sale of stolen property.  1 million worth of internet equipment was stolen from Virgin Media in 2010 and a large amount sold on to a Canadian company.

The money from the sales was paid into the bank account of one of the couple, who then transferred the money to their partner. Both were found guilty of possessing criminal proceeds and money laundering.

The first individual was sentenced to three years in prison and disqualified from being a company director for seven years. His partner received a one year prison sentence.

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Family convicted for money laundering - North Wales

A drug dealer planned to import heroin from Thailand to the UK via Amsterdam. His brother, mother and sister were also involved in the conspiracy.

The dealer and his brother admitted conspiracy to import heroin and conspiracy to launder money. The former was sentenced to seven years' imprisonment, his brother to five years and his sister to three years. Their mother was sentenced to 21 months for money laundering but released as she had already served time on remand.

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On a lighter note...

Bungling crooks jailed - south London

Four men literally laundered money by using a washing machine to attempt to clean security dye off stolen cash. The men stole the money while it was in transit from a bank. They were caught hanging the soaked notes out to dry in a bathroom by police. They were sentenced to 15 years in jail for robbery and money laundering.

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Taking money laundering literally - Stockport

A laundry worker who stored  250,000 of cash next to a washing machine at his home has been jailed for two years. The man was storing the money, believed to be the profits of a drug dealing, for members of a criminal gang.

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