Police gangland raids to net millions

DETECTIVES are set to launch an unprecedented swoop on Melbourne's mogul-gangsters after identifying concealed asset trails of more than $100 million. The Purana gangland taskforce, backed by forensic accountants, has spent more than a year tracing secret cash flows, concealed investments and dummy companies that have been used to hide the massive profits made by major drug syndicates.

The analysis has for the first time given police an accurate overview of the size of the organised crime black economy — a figure much larger than previous informed estimates. The taskforce has found that runaway drug tycoon Tony Mokbel is at least twice as wealthy as first thought. Detectives have identified assets worth $40 million connected with the Mokbel empire. They believe much of the money has been spread through a network of family members and friends who have acted as informal agents. But they also believe the planning for the distribution of the assets was completed using professional financiers.

Police are planning a series of raids to identify, freeze and finally sell the Mokbel fortune. While Mokbel has successfully moved some of his assets offshore, police believe that by destroying his Australian asset base he is more likely to surface. Last month police successfully applied to the Supreme Court to have Mokbel deemed convicted under the Confiscation Act of three state-based drugs charges laid in 2001. While Mokbel was convicted of federal cocaine charges earlier this year, the latest moves enable his assets to be sold under state confiscation laws.

Mokbel jumped bail and fled overseas in March this year, just days before he was found guilty of Commonwealth cocaine trafficking charges and sentenced to a minimum of nine years' jail. In a Purana raid in September police recovered around $1 million in cash and jewels buried in a Parkdale backyard. They found $350,000 in cash, 18 watches, 61 loose items of jewellery and 33 jewellery boxes concealed in PVC pipes that they allege were hidden on behalf of the Mokbel family.

In October police seized a Ferrari owned by a man alleged to be a partner in a Mokbel company. He was charged with four counts of obtaining financial advantage by deception and one of making a false document as part of a Purana money laundering investigation.

Detective Superintendent Richard Grant said police plan to brief specialist groups such as the Law Institute, accountancy firms and council planning units on how organised crime groups manipulate professionals to assist in concealing assets. He said police had begun identifying the assets of up to 50 suspected major crime figures and plan to use strengthened asset seizure laws to freeze their profits. "It is no longer enough to just lock up some of these people. Many are prepared to risk long stints in jail if they know that on their release they can live million-dollar lifestyles," he said. "Our plan is to dismantle these groups so that when they do the time they will be released to nothing."

Superintendent Grant refused to outline the police asset raids timetable and said it was impossible to say the value of the assets that would eventually be forfeited. "It is enough to say we will come knocking when we are ready. We will follow due process and we are certainly here for the long haul."

The Age.com.au
November 6, 2006