VGCCC, AUSTRAC behind AU$4.7m Money Laundering Scheme Bust - 2022
A 12-month, multijurisdictional investigation led to the arrest of three suspected members of a Melbourne money-laundering ring that orchestrated a plan involving the purchase of winning lottery tickets from electronic gaming machines.
Three individuals charged
The investigation conducted by the Australian Federal Police (AFP), in conjunction with AUSTRAC, the Victorian Gambling and Online Casinos Control Commission (VGCCC), and National Australia Bank, resulted in the indictment of two women – one, 49, from Springvale South and the other, 61, from Noble Park – and a man, 63, from Noble Park.
They were charged after the AFP executed three search warrants at a commercial property in Springvale and two residences in Springvale South and Noble Park and seized more than AU$170,000 ($114,000) in cash and gold bullion from a property in Springvale South that was concealed within plywood within a bedroom.
The AFP contends, based on an investigation begun in response to a referral from AUSTRAC, that the money is part of the illegal funds laundered by the network via a licensed gaming establishment in Springvale. Members of the syndicate bribed clients to give over their winning checks, which were subsequently issued in the name of one of the syndicate members and deposited as legal gambling sites profits.
All three are charged with violating Section 400.3 (2A) of the Criminal Code Act 1995 for participating in activity involving money or property that exceeded AU$1 million ($673,000) and will appear in Melbourne Magistrate's Court on September 8. Their crime carries a maximum punishment of 20 years in jail.
The Forensic Approach of VGCCC
According to data collected by the VGCCC between November 2021 and June 2022, the Springvale gaming venue had an abnormally high number of winning checks compared to other venues, and approximately 73% of the checks totaling AU$4.7 million were issued to a select group of patrons, who were suspected of being connected to those involved in laundering the illicit cash.
"If not for the forensic approach taken by our dedicated team of analysts and investigators, who spent countless hours reviewing data and footage, and conducting our own covert operations, this money laundering network would still be operating," said Annette Kimmitt AM, chief executive officer at VGCCC, sending a message to the gambling industry.
The regulator is continuing its examination of the Springvale gaming facility, and if the venue is found to be in violation of Victorian gambling regulations, the licensee will face disciplinary action ranging from a monetary fine to license revocation.
Kimmitt stated, "This operation demonstrates that as a newly empowered regulator, we are keeping a close eye on the gaming business and will collaborate with other authorities to aggressively pursue and eradicate illicit conduct."