Tag: UK News

  • 15.01.10 Hunslet Man Arrested for Money Laundering

    A 35-year-old Hunslet man has been arrested on suspicion of money laundering as part of an investigation involving the City and Holbeck Proceeds of Crime Team and the Holbeck Neighbourhood Policing Team (NPT).

    Police officers and police community support officers (PCSOs) from the NPT entered the unemployed man’s home yesterday afternoon using a warrant obtained under the Theft Act, as part of an investigation into handling stolen goods.

    Inside the property officers found a large number of high-quality electrical goods including a plasma television, stereo system, laptops and computer equipment, and kitchen items, worth thousands of pounds. The man was also found to have £5,200 in cash in his coat pocket.

    The man was able to produce receipts for the items, but these were all paid for in cash and he is believed to have been unemployed for a number of years.  He was arrested on suspicion of money laundering, and after being interviewed he was bailed pending further enquiries.

    The cash has been seized by the Proceeds of Crime Team, who will now carry out an investigation into the man’s lifestyle to determine how he has acquired his assets without a declared income.

    If it can be proved that these assets have been acquired through criminality, the Team can then apply to confiscate them under the Proceeds of Crime Act 2002.

    Why Should They?
    Detective Sergeant Tom Walsh of the City and Holbeck Proceeds of Crime Team said: “Anyone who has expensive possessions but no obvious income must raise eyebrows among people who earn honest livings in our communities, and I would appeal to these residents to contact the Why Should They? campaign if they have any suspicions about how these people have acquired their assets.”

    The warrant was carried out following information from the community, and Inspector Damien Miller of the Holbeck NPT said: “We’re keen to show local residents that we’re listening and will act on the information they give us. Warrants like this are a great example and I would encourage people to continue contacting us about the issues they want us to tackle.”

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  • 16.09.09 Four arrested connection with a £9m mortgage fraud

    Four men have been arrested by the City of London Police force in connection with a £9m mortgage fraud against a major insurance company.
     
    40 police officers have been involved in the operation in the South-East of England which has led to a number of co-ordinated searches on four houses, the business unit of a gaming company and a solicitor’s office. Police officers have seized documents from the sites searched.  As a result of the raids police have arrested four men on charges of conspiracy to defraud.

    Steve Head, detective chief superintendent at the City of London Police, says the move represents a significant step forward in what has been a complex investigation.

    He says: “The size of the police operation was evidence of the scale of this suspected fraud. It is not just the lenders that are being hit by the fraudsters. Individuals are losing millions and millions of pounds through a range of mortgage frauds, with much of this money being paid into the coffers of criminal networks.”

    He adds: “We have a number of significant investigations ongoing and as lenders and borrowers continue to scrutinise their finances I anticipate many more cases being referred to us in the near future. I would ask anyone who has fallen victim to mortgage fraud to contact the City of London Police. The more we know the more difficult we can make it for those committing this highly damaging crime.”
     
    The Solicitors Regulation Authority has backed the City of London Police’s crackdown on mortgage fraud.

    A spokesperson says: “The SRA works closely with police and other law enforcement organisations to tackle mortgage fraud. Since the start of 2009 the SRA has stepped up its work in relation to mortgage fraud, both through advice and warnings to the profession, and by increasing its detection and investigation resources to prevent, deter and tackle fraud.”

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  • 14.09.09 HM Revenue and Customs officers arrested 21 people in raids in a multi million pound construction industry fraud.

    The twenty one arrests, consisting of eighteen men and three women, were made covering areas as diverse as the West Midlands, Staffordshire, London and Greater Manchester. The suspects were arrested on suspicion of conspiracy to ‘cheat the public revenue’ and ‘money laundering’ offences amounting to over £6 m. They were questioned by HMRC criminal investigators at various UK police stations.

    The plot centers on a complicated conspiracy through a version of ‘missing trader’ fraud which sees the creation of a contrived chain of companies, which claim to subcontract labour for the construction industry, with the sole intention of disappearing before paying the taxes due are payable under the ‘Construction Industry Scheme’ (CIS) to HMRC. These organised criminal gangs, in a bid to steal millions of pounds, pocket the money and hijack legitimate companies along the way.

    This conspiracy exploits individuals working in the construction industry and it is believed thousands of construction site workers may have been robbed of the tax and national insurance contributions they have had deducted under the CIS scheme over the last six years.

    Adrian Farley, Assistant Director of Criminal Investigation for HMRC, said: “Today’s arrests are the result of strenuous efforts by our teams of dedicated officers to disrupt the sophisticated scams of organised crime gangs behind money laundering activities. This conspiracy by a number of contractors is believed to have resulted in the theft of over £6 million from the public purse, depriving vital public services of much needed investment. We are committed to bringing them to justice and to deprive them of the proceeds of their crime.”

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  • 10.09.09 Serious Fraud Office (SFO) launches investigation into JJB and Sports Direct

    Following an OFT investigation into the sports retail market, it has been announced that the Serious Fraud Office (SFO) has now begun its own investigations into JJB Sports and Sports Direct.

    JJB Sports revealed that it had stated its concerns about possible cartel activity in its market to the OFT which in turn has been granted immunity from any financial penalty in the event that competition rules have been broken.

    The investigation follows an approach made by JJB to the OFT on January 30, following the suspension of its then chief executive Chris Ronnie. JJB asked at that time;

    “for immunity pursuant to the OFT’s leniency programme in relation to a suspected agreement or concerted practice to dampen competition in the sports retail market in the period from 8 June 2007 to 25 March 2009, being the period in which the former chief executive, Mr Christopher Ronnie, was employed by the company.”

    JJB did not name any other individuals or companies in its statement today. However, there was frequent speculation during Ronnie’s tenure about the nature of his relationship with Sports Direct and its founder Mike Ashley for whom Ronnie formerly worked.

    OFT officers visited JJB at its Wigan head office this morning. It may be “some years” before the OFT investigation is complete. The retailer said in a released statement

    “that in the event that any subsequent immunity agreement, is withdrawn as a result of JJB’s non-compliance with the conditions or as a result of JJB’s evidence being materially undermined in particular circumstances, and an infringement decision is issued by the OFT, JJB “may be liable for a fine from the OFT of up to a maximum amount of 10% of the Group’s turnover”.

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  • 04.08.09 FSA bans Cornwall broker for fraud

    The FSA has banned Cornwall mortgage broker Stephen Sanders for submitting at least three mortgage applications on behalf of customers which he knew contained false and misleading income information.

    Sanders withheld information from a prospective employer relating to an investigation into him by his former employer which resulted in his suspension. He also failed to disclose to the FSA that he was the subject of an ongoing disciplinary investigation into his conduct by his former employer when applying to the FSA to perform a controlled function.

    For the first customer mortgage application, the income as stated in the mortgage application, was substantively higher that that declared by the customer to HM Revenue & Customs (HMRC). In the second mortgage application the income stated in a mortgage application included some of the income of the customer’s parents which was falsely described as his own. And in the third case there were discrepancies in the application about the income sources of the two customers who were making a joint application.

    Margaret Cole, director of enforcement at the FSA, said: “Sanders submitted mortgage applications which he knew to be false and this posed a serious risk to lenders and confidence in the financial system. Our work on mortgage fraud continues as a priority in our campaign against financial crime.”

    She added: “We have banned more than 60 mortgage brokers over the last three years and we will continue to ban such people to reinforce the message that knowingly giving false and misleading information to prospective lenders is dishonest. Approved persons must also be open and honest with the FSA and prospective employers about their circumstances. Behaviour which shows lack of honesty and integrity will result in a ban.”

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  • 03.08.09 Identity fraud soars in 2009

    New Cifas stats paint bleak picture for the UK’s financial institutions and card companies.

    Identity fraud surged by nearly three quarters in the first half of the year, driven by continued malicious online activity, and the economic slowdown, according to new figures from UK fraud prevention service Cifas.

    The organisation was set up to facilitate the sharing of information on identified fraud between its members – which include banks, card companies and insurance firms – in an attempt to prevent further rises in all types of fraud, including online.

    It said identity fraud, which includes victims of impersonation as well as the creation of fictitious identities by fraudsters, rose 74 per cent in the first six months of 2009 to over 100,000 cases.

    Facility take over fraud – where the fraudster gains access to a user’s account and siphons off funds – rose 40 per cent during the period with over 11,000 cases registered.

    There was some good for fraud departments however, with Cifas reporting an 11 per cent year-on-year increase in the financial losses avoided through the fraud data sharing of its members.

    “The rise in the numbers of victims, and these very specific types of fraud demonstrate that fraudsters have no regard for economic, social and personal fragility,” argued Cifas chief exeutive Peter Hurst.

    “While we all look for solutions to the hardships imposed by the current climate, however, these figures focus attention sharply on what responsible businesses and public sector organisations can achieve through sharing data on proven frauds to reduce losses and ease the burden of the recession upon us all. ”

    Although not broken out in the survey, it’s believed that much fraudulent activity committed today is card not present (CNP), including online, fraud.

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  • 31.07.09 Serious organised crime review published

    The Government’s new strategy for tackling serious organised crime, entitled Extending Our Reach: A Comprehensive Approach to Tackling Serious Organised Crime, has been published.

    The strategy endorses many of SOCA’s current ways of working, including by seeking to cement a collaborative approach and to embrace wide-ranging tactics.

    The strategy’s four main aims are to:

    • ensure that all organised criminals are within our reach, using non-traditional techniques to create an improved intelligence picture and supporting the principle of lifetime management;
    • use whatever tools have maximum impact, prosecuting when possible but also going further into using non-criminal proceedings, including to recover finances and assets;
    • enable all of Government to play its part, including by strengthening the criminal justice system approach and using the powers of agencies outside law enforcement to combat organised crime together;
    • maximise collective efforts overseas, and to work closely with the private sector and with the public.

    Speaking at the launch of the strategy, SOCA Executive Director David Bolt said:

    “Organised crime is constantly evolving, as is law enforcement, and five years after the publication of ‘One Step Ahead’ this is a timely and appropriate response. Our intelligence on organised crime has improved significantly, and we have new powers, the effects of which are starting to be felt. At the same time there are new opportunities for criminals, and law enforcement has to keep working to stay ahead”.

    The Review is a strong endorsement for the approaches SOCA has been pioneering, and looks to extend those approaches more widely. For example, every SOCA investigation involves a financial investigation; we are making use of Serious Crime Prevention Orders and Financial Reporting Orders; we work with non-law enforcement partners and the private sector; we work with prosecutors to ensure that the best line is taken in every case; and we are exploring the potential for greater data sharing and matching. We know that other countries look to the UK as leading the field in many of these areas.

    Through SOCA’s operational efforts in its first three years we have been able to identify over 5,000 individuals involved in organised crime at a level that makes them of interest to us. The people we are concerned about are mostly lifetime criminals. Some are overseas, some are in prison, but once they are in our sights we do not let go. We recognise that it is not a matter of dealing them a single blow and that we have to keep up our attack. As a result, it is likely that the number of people on our radar will continue to grow.

    The main principles of the new strategy are sensible: all organised criminals within reach; all approaches considered; all of government playing its part; all partners at home and overseas engaged. We particularly welcome the specific remit the Review gives to other government departments and agencies: this is not just for the Home Office and law enforcement to deliver. Collaboration is the key. This is something SOCA has always promoted – the legislation that set us up designed us to operate on that basis.

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  • 18.06.09 Taliban, Al Qaeda finances recovering

    Investigation shows Taliban in Afghanistan and Pakistan get money from extortion, crime and drugs.Taliban refer to extortion money as tolls, taxes or zakat

    PESHAWAR: For the Taliban in Afghanistan and Pakistan, money is coming mostly from extortion, crime and drugs, an AP investigation claims

    Funding for the Al Qaeda is more diverse and included money from new recruits, donations from sympathisers, and a cut of profits from honey dealers in Yemen and Pakistan.

    “With respect to the Taliban, the narco-dollars are a major, if not majority, of their funding sources, and I think add in there as well extortion and kidnapping,” said Juan Carlos, a former US National Security Council adviser on terrorism who now works at the Centre for Strategic and International Studies in Washington.

    Afghanistan produces more opium than any other country in the world. The Taliban charge drug kingpins to move the opium through their territory. The United Nations estimates their annual cut to be more than $300 million.

    ‘Taxes’: The Taliban refer to extortion money as tolls, taxes or zakat. Money from drugs and criminal gangs makes up roughly 85 to 90 percent of Taliban revenue, estimates John Solomon of the US Military Academy’s Counter Terrorism Centre. In Pakistan, the NWFP governor puts the Taliban’s annual earnings at roughly Rs 4 billion.

    Taliban soldiers are paid nearly $100 a month, more than the average Pakistani policeman. A Taliban commander gets more than $350 a month.

    The informal money transfer system known as hawala or hundi is flourishing in Pakistan and Afghanistan as well as the US. Former prime minister Shaukat Aziz said more than $5 billion went out of Pakistan every year through this system, which operates without regulation.

    In three of the last five years, the top source of money transfer into Pakistan through hawala has been the US, a security official said.

    After September 11, 2001, the financial crackdown closed some of Al Qaeda’s sources of funding. But with the help of the hawala system, it has since re-established its money line.

    Over the last two years, it has turned up the call for donations, told new recruits to bring money with them, and shown signs of being more frugal. This can either mean that it is saving up for another 9/11-style attack, or that the crackdown has curbed its fundraising ability.

    Estimates of Al Qaeda’s annual spending vary wildly from $300 million to as low as $10 million.

    Carlos said its main expenses were payments to families; food and shelter to maintain operations; travel and logistics; money for cells engaged in plots; bribes, and expenses for long-term plans like anthrax research.

    Some charities with alleged Al Qaeda connections have renamed themselves. In Kuwait, the Revival Islamic Heritage Society, believed by the US to be heavily financing Al Qaeda, is still operating.

    Because of demands from the International Monetary Fund, Pakistan has removed restrictions on the amount of money that can be brought into the country. It has limited to $10,000 the money that can leave the country, cracking down on some of the biggest hawala dealers.

    “Once the money is inside the country, it is difficult to locate it. Smugglers and transporters help finance the Taliban either out of sympathy for their cause or because they are being forced to give a share,” said a security official.

    A cartel of honey dealers is back in business, laundering money and moving drugs but the scale is smaller than in 2001.

    A former fighter with Gulbuddin Hekmatyar told AP honey is sent from Pakistan with an inflated price tag to markets in the Middle East and the profits sent by courier to Al Qaeda.

    Honey dealers in Peshawar said that there was no Al Qaeda link to their sales. But one honey dealer said the outlawed Al Shifa Honey Press was still operating in Punjab. He said he knew of no Al Qaeda affiliation

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  • 5 June 2009 EUROPE’S ‘BIGGEST PEOPLE SMUGGLER’ JAILED FOR PIZZA PLOT

    An Afghan criminal who boasted he was Europe’s biggest people smuggler has been jailed for 9 years for smuggling illegal immigrants into the UK.

    Two other members of the people smuggling gang were today sentenced to a total of 19 years.

    The gang is known to be responsible for the illegal immigration of more than 230 young men into Europe, mainly from Pakistan and Afghanistan, although the actual figures are likely to be higher. Almost half of those were smuggled into the UK. The victims were then set to work in pizza outlets to pay off their ’debt’ of up to £10,000.

    Kingston Crown Court heard how SOCA surveillance recorded Abdul Hameed Sakhizada in January 2008 saying that in two months he had facilitated 1800 people, claiming “I am Europe’s agent, I am the smuggler of Europe.”

    SOCA worked with international law enforcement agencies to investigate the gang, which smuggled its victims through Afghanistan, into Iran and Turkey,then to the Greek islands, and into other European countries including the UK.

    Seventeen pizza outlets were raided in January 2008 by SOCA, Kent Police,Northamptonshire Police, Thames Valley Police, Hampshire Police, and UKBA. The gang members were arrested and charged with conspiracy to facilitate the illegal immigration of persons into the EU and the UK, and with conspiracy to launder the criminal proceeds of crime. The victims found were dealt with by the UKBA. Subsequent raids uncovered false birth certificates and driving licences.

    Sakhizada pleaded guilty at the start of the trial on 16 March. His role was to coordinate the crossing into Europe from Turkey to Greece – a service he also provided for other international gangs. Independent agents based in each of the other transit countries would manage the different stages of the journey.

    The main organiser of the UK trade, Abdul Wakil Niazi, who was involved in the management and running of the pizza outlets, along with Sakhizada’s brother, Ahmed Shah Sakhizada, was found guilty on 21 May. They were sentenced to 12 years and 7 years respectively.

    His Honour Justice Welchman called the people smuggling operation “a very serious and well organised enterprise, a complex scheme involving a high degree of planning”.

    SOCA’s Director of Enforcement Trevor Pearce said:
    “People smuggling is a serious crime which exploits vulnerable people for profit and causes harm to individuals, communities and the UK as a whole. This was a highly sophisticated and well organised criminal enterprise which was prepared to extort money from its victims and challenge the UK’s immigration regime. The message today is clear – the UK is not a soft touch for people smugglers. SOCA’s global connections mean we will find you and we will stop you.”

    UK Border Agency Regional Director Tony Smith said:
    “We are determined to tackle those who commit organised immigration crime and bring the perpetrators to justice. This was a major international conspiracy to facilitate the entry of illegal immigrants into the UK. “Those behind it showed total disregard for the law, and their motives were purely financial. We will continue to work shoulder-to-shoulder with SOCA, the police and other enforcement partners to stamp out any abuses of the system,and remove those who have no right to be in the UK.”

    Janet Boston, reviewing lawyer for the Crown Prosecution Service Organised Crime Division, said:
    “This was a profitable, sophisticated operation which was run in a highly organised, business-like manner by men who took advantage of those who willingly left their homeland and families to seek a better life. Inevitably these illegal immigrants were in debt to those who helped them gain entry to the UK and were put to work fast food outlets where the money they earned was taken to pay their debts. Any money the organisers made was channelled back into the people smuggling organisation – enabling the whole circle to begin again. “The defendants all had various positions in the “business”.

     Abdul Hameed Sakhizada and Abdul Wakil Niazi were the main organisers while the prosecution case was that others fulfilled the roles of money collectors, book keepers, provided false documents and transferred the money overseas. This was a major people smuggling enterprise and thanks to the hard work of all the agencies involved and the prosecution team in presenting the case, it has now been dismantled. We will now be looking at making applications under the Proceeds of Crime Act for money made by the organisation and for Serious Crime Prevention Orders which will restrict the defendants’ ability to engage in this activity in the future.”

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  • 3 June 2009 36 million spliffs incinerated as international crime gang is convicted

    Over 12.5 tonnes of cannabis resin – enough to produce 36 million spliffs – has been incinerated after an investigation by the Serious Organised Crime Agency.

    The drugs seizure, from the tug boat ‘Abbira’ which had docked at Southampton, represents one of the largest seizures of cannabis resin in the UK. It was destroyed in a specialist incinerator and needed 6 separate burnings to cope with the volume.

    10 men were convicted at Winchester Crown Court today for their part in the criminal plot.

    In a coordinated operation led by SOCA and involving Leicestershire Police, HMRC andUKBA, 12 men were arrested on the 09th April 2008, at the same time as a search of the Abbira began. Over a number of days, 419 bales of cannabis weighing 12.57 tonnes in total were removed from the fresh water, ballast and foam tanks of the tug.

    The prosecution showed that an Israeli organised crime group employed an Eastern European crew to transport the drugs to the UK for delivery to a Leicester based criminal gang. Significant national and international cooperation was needed to target the various groups, and resulted in a lengthy trial with multiple translations and complex argument to prove the importation offence.

    Andy Sellers, Deputy Director of SOCA, said:
    “This operation was a massive success for international and national law enforcement cooperation. The quantity of drugs seized would have resulted in upwards of three and a half million street deals and would have funded a wide range of other criminal activity. “Taking out both ends of the criminal operation means that not only have we disrupted a supply route into the UK, but also a distribution network that would most likely have stretched right across the UK.”

    Joanne Jakymec, Senior Lawyer, Revenue and Customs Prosecutions Office said:
    “This conviction represents 14 months of dedicated team work between several departments overcoming multiple language barriers. The defendants included nationals from the UK, Israel, Serbia and Ukraine, and as a result international assistance was sought from 10 different countries. The RCPO prosecution team presented over 5000 pages of evidence in support of their case, including material from Israel, USA and Holland.’

    Commander Chris Pratt of HM Revenue & Customs /UK Border Agency said:
    “The cutter crew and rummage teams used breathing apparatus equipment to remove the drugs from the Abbira’s water and ballast tanks. It took our officers nearly five days to recover and offload the 419 bales from these confined chambers. This was a huge amount of cannabis resin to discover on one vessel and an excellent result for all the organisations involved.”

    Detective Chief Inspector David Sandall, who led the Leicestershire side of the investigation, said:
    “This case demonstrates how different agencies can successfully work together to disable the international drugs trade. “Drugs are an international concern and to fight multi-national criminality you have to think, act and work outside the county boundaries. There’s no doubt in my mind that this drugs haul was bound for the streets of Britain, some of which would inevitably have ended up in Leicester. By working with SOCA, the UKBA, HMRC and authorities in Israel we have targeted the problem at the source.

    “There’s £36m of cannabis that will never reach the street dealers and there are 10 men in prison for their part in this crime. Everyone who worked on this case can feel proud of their achievements today and the part they played in a much bigger picture, targeting international drugs criminality, while at the same time disrupting local drugs supply on the UK’s streets.”
    The 10 men will be sentenced on Thursday 04 June 2009 at Winchester Crown Court.

    Details of the verdicts:
    Moshe KEDAR d.o.b 12/07/1927 (Israel) Guilty 29/052009
    Yehezkel SREBRO d.o.b 12/11/1951 (Israel) Pleaded 29/09/08
    Mordechai HERSH d.o.b 25/11/1941 (Israel) Guilty 29/05/2009
    Mohinder Singh RAI d.o.b 22/02/1964 (UK National) Pleaded 29/09/08
    Baljinder Singh RAI d.o.b 18/10/1967 (UK National) Pleaded 29/09/08
    Anjum NAZIR d.o.b 01/02/1970 (UK National) Pleaded 17/02/09
    Dragan STANKOVIC d.o.b 17/12/1954 (Serbian) Guilty 29/05/2009
    Goram OTOVIC d.o.b 28/04/1955 (Serbian) Guilty 29/05/2009
    Dusan MILEUSNIC d.o.b 07/10/1959 (Serbian) Guilty 02/06/2009
    Negovan JOVANOVIC d.o.b 07/09/1950 (Serbian) Guilty 02/06/2009
    Yaroslav KSENOVETS d.o.b 04/09/1973 (Ukraine) Acquitted 02/06/09
    Sergiy KHODOS d.o.b 08/02/1983 (Ukraine) Acquitted 02/06/09

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