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Launderers in the news: January 2012

12 January 2012

Convictions for money laundering continued apace in the lead up to the festive break.

18 years jail for gang who laundered funds stolen from German Bank

Four men who undertook extensive laundering of $15.5m which was stolen from a German Bank eleven years ago were sentenced in early December. They received jail terms ranging from two to eight years while assets have been restrained in the UK, Spain, Portugal and Australia. Aspects of the laundering scheme involved the targeting of vulnerable council tenants to secure local authority properties for redevelopment.
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Gang of 15 jailed for  250m VAT fraud

December 2011 saw the end to a prosecution which had spanned eight years and involved a  250m VAT fraud. While the 15 members were sentenced to just over 97 years jail between them, the action to recover the monies has been less successful.

Since 2008 only  1.61m has actually been returned to consolidated revenue. Just under  8.5million is currently subject to confiscation orders, but less than  1m of those assets are currently restrained. A further three confiscation orders are pending with  15m in assets in relation to those proceedings actually restrained. However given that two of the individuals awaiting confiscation received the lightest sentences of the gang it seems unlikely that total confiscation orders will ultimately be levied on much more than a tenth of the value of the fraud.

A further disappointing feature of this case is that while most of the offenders opened bank accounts with the proceeds of the crime and transferred the funds nationally and internationally, only one offender was charged with money laundering. He was sentenced to nine years jail for that offence.
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Account jailed for 6 years for laundering drug money - Wilmslow

An accountant who laundered more than  1.2m for his drug dealing boss was jailed for six years. The laundering process involved the creation of a complex web of international trusts and companies in jurisdictions including the UK, the BVI, the Seychelles and Azerbaijan. The accountant utilised a hotel, also purchased as a part of the laundering scheme, to proceed to defraud his boss to fund his lifestyle.
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Gang jailed for tax credit fraud using foreign nationals- Maidstone

A criminal gang recruited a Slovakian women to fraudulently apply for tax credits and continued to claim those credits after the women left. They were convicted of Tax Credit Fraud and money laundering and each received sentences ranging from three to four and a half years.
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Luxury lifestyle nabs money launderers - Manchester

Designer handbags, luxury cars and an expensive wedding while living on benefits and a  15,000 wage from a car rental firm landed one Manchester couple in jail for money laundering. The prosecution was not required to demonstrate that they had engaged in any specific criminal activity but rather the court was satisfied that the complete lack of a legitimate explanation for the source of funds meant that they were criminally obtained. She received an 18 month sentence while her husband was sentenced to 11years jail for money laundering, arson and escape from custody.
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Family jailed for laundering proceeds of father's tax evasion - London

A family whose father's company failed to pay appropriate income tax on his security guard business has paid a hefty price. His wife and three daughters were convicted of laundering  1.3m through their bank accounts. The mother was sentenced to 16 months imprisonment and the daughters each received community service orders with suspended prison sentences.
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Drug money launderers caught red-handed - Yorkshire

Three drug money couriers were convicted of money laundering after money contaminated with heroin was found in their car when they were pulled over by police. They received sentences ranging from 30 months to a nine month suspended sentence.
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Money mule jailed for 26 weeks - Reading

A young man from Reading was found guilty of allowing his bank account to be used to transfer the proceeds of crime outside of the UK. The jury had accepted that he initially did not realise that his actions were wrong but that he came to suspect that he was being used for a 'fraudulent purpose'.
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Loan shark given suspended sentence for laundering - Cumbria

An unlicensed money lender was given a nine month suspended sentence for laundering funds received from his illegal business.
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Footballer convicted of money laundering - Cambridge

A Cambridge footballer has received a six month suspended sentence for laundering funds received through an eBay credit card scam.
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Portfolio criminal loses cash as penalty for laundering - Doncaster

A Doncaster man who had committed a series of frauds to fund a portfolio of properties and his tanning salon business, obtained a loan by deception, failed to declare income for tax purposes and was in possession of 10,000 illegal cigarettes was sentenced to two years in jail. He was convicted of a money laundering charge for possessing  50,000 in cash, the origin of which he could not explain. He did not receive any jail time for this offence but the cash was forfeited.
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