Putting the Drugs Business

1

• Putting the Drugs Business
• Out of Business

2
Tackling the Profit ofDrug Traffickers /
Organised Crime

• Detective Chief Superintendent Felix
  McKennaChief Bureau OfficerCriminal Assets
  Bureau

3
Some questions

• If you were a running a commercial business how
  would you put your competitors out of business?
• How would you cope with your competitors?
• Our common aim should be putting the drugs
  business out of business!

4
Outline of Presentation

• Structure and Objectives of Bureau and Reporting
  Arrangements
• Historical Perspective of Crime and Drug
  Trafficking in Ireland
• Strategy of Bureau and Bureau Operations
• Outline of Legislation for Multi-Agency Action
• Outline of Operations and Work Practices
• Identification and Confiscation
• Operational Case Studies and some Results
• The Way Forward
• Q and A Session

5
Detective Garda Gerry McCabe Murdered on 6 June
1996
Veronica Guerin Murdered on 26 June 1996
6
Introduction of Criminal Assets Bureau

• Structures, Legislation and Procedures in 1996
• The Bureau, a Multi-Agency organisation,
  co-operates with the Customs, Taxes, and Social
  Welfare authorities and and with relevant Garda
  Units such as Garda National Drugs Unit, the
  National Bureau of Criminal Investigations and
  the Garda Bureau of Fraud Investigations

7
Proceeds of Crime Act 1996 Civil Remedy

• Interim/Interlocutory orders (Freeze) on
  specified property having a value of not less
  than 13,000
• Civil law procedures in High Court
• Action not dependent on criminal conviction
• Civil standard of proof of criminal activity
• Belief of Chief Superintendent or Authorised
  Officer of Revenue Commissioners is admissible
  evidence
• Living, Business and Legal expenses can be
  released by court when proved to be essential
  (Ad-hoc legal aid scheme in place)
• Receiver to take possession, dispose or otherwise
  deal in property, subject to court directions in
  appropriate cases
• Property frozen for seven years before disposal
  for benefit of central fund
• Over 90 cases since 1996.
• Total value of frozen assets - 50m

8
The Proceeds of Crime!
9
Criminal Assets Bureau - Statutory Objectives

• (a) the identification of the assets, wherever
  situated of persons which derive or are suspected
  to derive, directly or indirectly, from criminal
  activity,
• (b) the taking of appropriate action under the
  law to deprive or to deny those persons of the
  assets or the benefit of such assets, in whole or
  in part, as may be appropriate, and
• (c) the pursuit of any investigation or the doing
  of any other preparatory work in relation to any
  proceedings arising from the objectives mentioned
  in paragraphs (a) and (b).
• (Section 4, Criminal Assets Bureau Act, 1996)

10
Criminal Assets Bureau Features
Garda
Customs Officers
Criminal Assets Bureau
Tax Inspectors
Social Security Officials
Professional expertise- Legal, Accountancy, IT,
Administration

• In-house Legal Advice
• Anonymity provided to
• non-police Bureau Officers
• Offences of identifying,
• obstructing, intimidating or
• assaulting Bureau Officers
• Warrant to search for
• evidence of assets

• Statutory Body
• Statutory Objectives
• Multi-Agency approach
• Combines powers and
• functions of Bureau officers
• Co-operation at all levels

11
Strategy of the Bureau
Revenue Actions
Freezing / Confiscation
Proceeds of Crime!
Social Welfare Actions
Criminal Investigations
12
In the picture but not in the frame
13
Both!
14
Criminal Investigations

• Investigation, Arrest, Prosecution,Conviction
• Misuse of Drugs Act 1977, forfeiture of
  Instrumentalities of drug trafficking - post
  conviction
• Criminal Justice Acts, 1977 - 2001
• Forfeiture of Instrumentalities of Crime post
  conviction
• Previous 6 years examination
• Court make determination of benefits for
  confiscations
• Provided for restraint orders against persons
  charged or about to be charged with drug
  trafficking and other serious crime
• Provided for confiscation orders against persons
  convicted of drug trafficking and other serious
  crime
• International co-operation under Part 7 of CJ
  Act 1994
• Mutual Legal Assistance

15
Revenue Enforcement(Taxes and Customs)

• Disclosure Act 1996, permits exchange of
  information.
• Bureau authorised by statute to assess, charge
  and demand tax in the name of the Bureau
• Bureau obliged by statute to fully apply
  Revenue Acts to the proceeds or suspected
  proceeds of criminal activity
• Revenue Officers appointed as Bureau Officers and
  act under direction and control of Chief Bureau
  Officer
• Profits or gains from unlawful source or activity
  are subject to tax under Irish Law
• Ordinary powers and procedures under Revenue Acts
  are available to the Bureau for collection and
  enforcement
• 75m collected
• Imprisonment for Revenue offences

Chief Superintendent
Authorised Officer
16
Social Welfare Enforcement

• Officials from Department of Social Community
  Family Affairs are appointed Bureau Officers and
  act under the Direction and Control of the Chief
  Bureau Officer
• Determinations are made dis-entitling persons
  engaged in criminal activity to benefit
• Court proceedings to recover overpayments of
  benefit
• Social security personnel provide speedy access
  to highly relevant information
• 2m recovered
• Imprisonment for Social Welfare offences

17
Operational Examples John Gilligan

• Origin - National and international co-operation
• Gang Leader
• Assets of gang members seized
• Arrested in London - 330,000 cash
• Money laundering charges
• Extradition application
• Charges- murder, drug trafficking, firearms
• Convictions- drug trafficking 20 years
• Assets (dwelling house, equestrian centre) Frozen
  

18
Brian Meehan

• Origin - National and international co-operation
  
• Convicted of murder of Veronica Guerin serving
  life sentence
• Houses and vehicles seized and sold by auction
• STR of 15,000 in account in Ireland
• MLIU ? CAB ? EUROPOL ? Austria
• Shared intelligence
• Freezing order obtained in High Court in Dublin
• 1m frozen in Austria under their law
• Seven years have now elapsed
• Disposal order obtained over money from houses

19
Proceeds of International Crime

• Proceeds of Crime
• Convicted Dutch Criminal
• Transfer of evidence
• Property located in Ireland
• Court Order under Proceeds of Crime issued.
• Property sold for 1,000,000.

20
Operational Examples

• Proceeds of Drug Trafficking and other crime
• Michael Greene, Major International Criminal
  Drugs, Armed Robberies, Murder
• Properties located in Ireland
• UK Customs/Dutch Authorities provided criminality
  evidence
• Subject on run from UK in Spain arrested but
  avoided extradition to UK
• CAB took action on assets and Court issued
  Proceeds of Crime Orders.

21
Common Criminal Methodology(some examples)

• Use of Professionals(Solicitors/Accountants
  etc.)
• Use of Limited Liability Companies
• Offshore Accounts
• Properties/Assets held in names of family members
  and associates with no criminal records.
• Use of fictitious identities
• Non-registration of properties
• etc., etc.,

22
The Way Forward

• Multi Agency Approach
• Local initiatives Divisional Profiler /
  Criminal Assets
• Civil and Criminal Sanctions
• Public Support
• Exchange of Information - Financial
  institutions, Commercial Enterprises, Private
  Sector
• Europol and International cooperation /
  harmonisation
• CARIN Informal Network
• Judiciary
• High Court actions, impact of Supreme Court
  decisions on foreign criminality
• Legislation available at www.irlgov.ie/ag - Irish
  Statute Book
• bureau_at_eircom.net

23
Question and Answer Session Criminal Assets
Bureau Harcourt SquareDublin 2Tel- 353 1
666 3266Fax- 353 1 666 3296
24

• Putting the Drugs Business
• Out of Business

25
Death and TaxesProviding the Second Certaintyto
the Drugs Business

• Kyle G Smith
• Special Agent
• and
• Director of Public and Governmental Affairs
• Kansas Bureau of Investigation

26

• Putting the Drugs Business
• Out of Business

27
Operation McArthur A Case Study

• Keith Taylor
• Detective Constable, Merseyside Police

28
(No Transcript)
29
(No Transcript)
30
(No Transcript)
31

• Early Financial Intelligence.
• NCIS (FID), HMCE.
• Identified organised and professional group of
  criminals involved in the large scale importation
  and distribution of Class A drugs into the UK.
• Identified Frank Smith as being the head of this
  crime syndicate.

32
(No Transcript)
33

• Identified that Smith and his criminal associates
  had accrued great wealth.
• They were a threat to the public safety on
  Merseyside.
• It became apparent that by removing Smith from
  this criminal organisation it would destroy this
  organised group of criminals.

34
Structure of Team

• HM Customs Excise.
• NCIS (FID).
• Merseyside Police Force Crime Operations Unit.
• Financial Investigation Unit.
• Isle of Man FIU.
• Jersey FIU.

35

• Scottish DEA and Strathclyde Police.
• Crown Prosecution Service.
• Central Confiscation Branch.
• Authorities within South Africa and Bahamas.

36
(No Transcript)
37
Objectives

• To remove Smith and destroy this organised crime
  group.
• To seek assistance from all other law enforcement
  agencies and partners.
• Arrest Convict.
• Remove Proceeds of Crime.

38
Investigation

• Syndicate team of 19 police officers.
• SIO to direct operation.
• Dedicated Financial Investigator.
• Conventional Surveillance.
• Daily briefings - conferences.
• Exchange of information and intelligence.

39

• Financial Investigator part of the pro-active
  investigation.
• Seizure - 29/05/2002 5 kilos heroin.
• Seizure - 10/06/2002 15 kilos heroin.
• Money Laundering activities.

40

• Further intelligence and evidence gathered.
• Partnership with HM Customs Excise and
  Strathclyde Police.
• Seizure of -
• 150,000 MDMA tablets, 20.8 kilos Heroin, 18.8
  kilos Cocaine, 100.7 kilos Amphetamine.

41
(No Transcript)
42

• Further 6 subjects arrested including Frank
  Smith.
• All interviewed and charged.
• Frank Smith found guilty and sentenced to 25
  years imprisonment.

43
(No Transcript)
44
Confiscation

• Restraint Applications.
• Assets abroad.
• Section 11 statements.
• Forensic Accountants Report.
• Confiscation Hearing.
• Enforcement.
• Further Money Laundering Investigations.

45
(No Transcript)
46
Outcomes/Key Achievements

• Destruction of Organised and Professional
  Criminal Organisation.
• Removal of large quantity of Class A drugs.
• Good working relationship with partners within
  the UK and internationally.
• Improvement of public safety and satisfaction for
  the citizens of Merseyside.

47

• Removal of Criminal Wealth.
• Restore public confidence and satisfaction in the
  Police Force.

48
Result

• 9 persons arrested.
• Total prison sentences for all subjects totalled
  103 years.
• Drugs seized in excess of 7 million.
• Assets confiscated 1.9 million.
• Further subject to be arrested with estimated
  assets of 800,000.00.

49
(No Transcript)
50

• Putting the Drugs Business
• Out of Business

51
Panel DiscussionChaired byNeil Bennett
52

• Putting the Drugs Business
• Out of Business

53
The Drug Driving PhenomenonAn Operational
Italian Experience
Dr Roberto Liddi International Business
Development Manager, Cozart plc Comandante
Roberto Opizzi Area Commander, Palazzolo S/O
Local Police Force, Italy
54
The Italian Police Organisation
Carabinieri Guardia di Finanza
Carabinieri Guardia di Finanza
Carabinieri Guardia di Finanza
Carabinieri Guardia di Finanza
State Police
State Police
State Police
MoIA Legislation
MoIA Administrative
MoD Administrative
LA Administrative
MoIA Ministry of Internal Affairs MoD
Ministry of Defence LA Local Authority
Local Police
Local Police
Local Police
Local Police
55
Italian State Police
2002 Traffic Police (Ministry of Internal
Affairs) requested to check suitability of
selected drug testing systems (Cozart RapiScan)

• Pre-selected target for drug driving testing
  (discos, rave / public parties)
• Presence of a medical officer
• Cozart RapiScan used as screening test
• Medical exam and further testing on site
• (usually State Police ambulance)

56
Italian State Police
57
The Italian Legislation

• July 2003 New Highway Code gave powers to Police
  Officers to test at the road side for drugs of
  abuse alongside alcohol
• Article 187, 1st paragraph it is forbidden to
  drive under the influence of substances of abuse
• Police Officers can use non-invasive screening
  devices which produce qualitative results
• A positive result entitles the Police Officers to
  request a formal medical examination and further
  testing (blood sample)
• Refusal to undergo any of the above is considered
  a positive result

58
The Italian Legislation

• A person found positive is charged as follows
• Immediate suspension of his/her driving license
  15 days - 3 months
• 6 months - 12 months suspension if the person is
  found
• positive more than once in a year
• The driving license can be permanently revoked in
  the case
• of a vehicle heavier than 3.5 tons or carrying
  more
• than 9 persons
• 10 points on the driving license (equivalent to 6
  points in UK)
• 258 - 1032 penalty
• Imprisonment for up to 1 month

59
Italian State PoliceII phase drug driving project

• July September 2003

• Oral Fluid collected at the roadside and tested
  with Cozart RapiScan
• Positive screen - full medical examination and
  confirmation
• 46 positive overall commonly cocaine and
  cannabis

60
Italian State Police
61
(No Transcript)
62
(No Transcript)
63
Drug Alcohol Screens, Local Police Palazzolo,
Brescia Mar 04 Sep 04

• Total tested 118
• Positives for Drugs and/or Alcohol - 53

64
Positive Results Drug Type
65
Effect of Testing Brescia region
Testing began
66
Local Police Operations

• Cozart RapiScan used to screen at the roadside

• Absence of a medical officer on site

• Used with the breathalyser on a routine basis

• Positive results - Local Health Authority used
  for medical examination and further testing

67
Press Coverage
68
Final Comments

• Drug abuse and prevalence
• Many more Local Police Forces are using this
  system (Milan, Alessandria, etc.)
• Effectiveness of the system
• Social awareness
• Prevention

69
Please visit our stand in the Octagon Court for a
demonstration
70

• Putting the Drugs Business
• Out of Business

71

• ACPO Drugs Conference 2004
• Gala Dinner
• ACPO Awards

72

• Putting the Drugs Business
• Out of Business

73

• Putting the Drugs Business
• Out of Business