Dealing with Proceeds of Crime

Dealing with Proceeds of Crime

Principal offences covered in this table:

-  Deal with proceeds of crime worth $100,000 or more (Cth) (maximum penalty: 20 years’ imprisonment);

-  Deal with proceeds of crime worth $50,000 or more (Cth) (maximum penalty: 15 years’ imprisonment);

-  Knowingly dealing with proceeds of crime (Vic) (maximum penalty: 15 years’ imprisonment);

-  Recklessly dealing with proceeds of crime (Vic) (maximum penalty: 10 years’ imprisonment).

Case / Date / Disposition Type / Head Sentence / Orders / Individual Sentences / Plea / Offence / Appeal Status
Truong
[2016] VCC 281
(resentenced on appeal) / 15 March 2016 / Custodial / 72 months (6 years)
NPP – 48 months (4 years) / Deal with proceeds of crime worth $100,000 or more (Cth) x 3 (4 years and 6 months; 3 years x 2); and
Deal with proceeds of crime worth $50,000 or more (Cth) (2 years and 6 months).
/ NG / Offending – O important link in chain enabling Melbourne-based principal of international drug syndicate to launder money that was the proceeds of his drug trafficking. O assisted principal offender to remit his drug proceeds from Australia to Hong Kong by enabling him to launder money through Crown Casino and to have it moved offshore via telegraphic transfers authorised by Crown Casino. In total $696,500 transferred on 4 occasions over 2 month period. O conduit. Not simply acting upon directions of principal offender. O introduced instrumental co-offenders into scheme. Considerable degree of planning and organisation involved together with coordination of activities involving a number of persons. Substantial amount of money. O’s commission in range of 5.5% to 6.5% of the total amount dealt with on each occasion. High objective seriousness.
Offender – No relevant prior convictions, prior good character, motive said to be financial reward, 52 y male, disrupted and difficult childhood, exposure to war in Vietnam, good work record, support of family and friends, sponsor of children through the Salvation Army child sponsorship program, O’s properties subject to restraining orders and forfeiture applications causing stress, parity noting different circumstances between O and co-offender. / Appeal against sentence allowed (manifest excess)
[2016] VSCA 228
21 September 2016
case summary
Guan
[2016] VCC 471 / 20 April 2016 / Custodial / 60 months (5 years)
NPP – 36 months (3 years) / Deal with proceeds of crime worth $100,000 or more (Cth) (rolled-up charge) x 2 (4 years x 2). / G / Offending – Over 3 months O dealt with money totalling AUD $3,470,900 on 10 separate occasions by receiving, possessing or disposing of the money. The moneys were the proceeds of drug trafficking. O collected the money from a co-offender in Melbourne who trafficked in commercial quantities of drugs for a Hong Kong based criminal enterprise. O then counted, packaged and delivered the money to couriers who took the money to Hong Kong. O did not know the money he was laundering was from drug trafficking. O was a trusted person to handle, control and deliver large sums of money. Critical role. Subsidiary to co-offender who trafficked, but more senior than couriers. Extensive amount of money. Offending objectively serious and extensive.
Offender – Prior convictions, specific deterrence moderated and imprisonment will weigh more heavily on O due to major depressive disorder and generalised anxiety disorder, no pending matters, 29 y male, work history, prospective employment, support of family (in Australia), burdensome imprisonment due to prospect of deportation, remorse, totality, parity, delay, fair to good rehabilitation prospects.
Tran & Trang
[2016] VCC 109
Offender 1 / 12 February / Custodial
/ 24 months’ imprisonment (2 years)
NPP – 15 months (1 year and 3 months) / Knowingly dealing with proceeds of crime (Vic)(1 year and 10 months’ imprisonment); and
Breach of suspended sentence (breach proven and original sentence wholly restored:
Dealing with the proceeds of crime (6 months’ imprisonment)).
/ G (early) / Offending – O1 proprietor of shop that sold health and beauty products. On a daily basis O1 and her husband (O2) received a variety of health and beauty products from large number of shoplifting offenders who had stolen the products from commercial outlets. Property valued at $72,613.98. In exchange for stolen goods the peripheral offenders received 10 – 20% of the items' retail value. O1 primary operator of business. O2 actively involved. Gross dishonesty. Property will be returned to owners.
Offender 1– Prior dishonesty convictions, similar pending matters allegedly committed whilst on bail, on suspended sentence, 54 y female, primary carer for aged mother, disrupted education, fragmented marriage, single mother, difficulty in adjusting to new country and culture, O applied herself to hard work since her arrival in Australia, motive said to be self-created financial difficulty, commitment to daughter’s education, remorse.
Tsui [2017] VCC 68 / 9 February 2017 / Custodial / 13 months’ imprisonment - release on RRO after 9 months
12 month RRO (1 year):
-  Good behaviour
-  $500 (surety). / Deal with money reasonably suspected of being proceeds of crime worth $100,000 or more (12 months); and
Breach of condition of parole (1 month) / G (early) / Offending – O met his co-offender near the airport and gave him a backpack which had $500,050 worth of Australian currency inside. $3000 was later transferred into O’s bank account in payment. This was part of a larger money-laundering scheme, though O was not the author or the instigator of this arrangement, but just facilitating the transfer.
Offender – prior convictions for drug offences, offence committed while on parole, motivated by financial gain, 64 y male, drug use, sad and bleak life, reasonable prospects of rehabilitation.
To [2017] VCC 475 / 27 April 2017 / Combination / 12 months (1 year) imprisonment - release on RRO after 8.81 months (268 days - time served)
12 months (1 year) RRO:
-  $1000 surety / Dealing with money reasonably suspected of being proceeds of crime worth $100,000 or more (Cth) / G (early) / Offending – O was involved in an investigation into money laundering after being in contact with the principal suspect. O arrived from Sydney at Melbourne airport with a co-offender (CO) and rented a car. The next day, both offenders were driving and were intercepted by police.
Police searched the car and discovered a bag containing $550,430 divided into 45 bundles and placed in vacuum-sealed bags.
Motivated due to deferment of debt. O was asked to go to Melbourne to deliver the parcel by his creditors in Hong Kong. Substantial amount involved. Conduct was not sophisticated. Mere possession only. Courier for one isolated occasion.
Offender – no prior convictions, 36 y male, possibility of deportation leading to more burdensome incarceration, isolation, sound prospects of rehabilitation
Nguyen & Do
[2016] VCC 561
Offender 1
/ 6 May 2016 / Custodial
/ 12 months (1 year) – 6 months suspended for 6 months / Recklessly dealing with
proceeds of crime (Vic) / G (early) / Offending – Over 13 months Os were the registered proprietors of 4 properties and they allowed others to use the properties as ‘grow houses’ where cannabis plants were hydroponically cultivated and electrical bypasses were connected. Offending persistently involved use of sham documentation to suggest that legitimate rental income was earned. Os acted recklessly as to whether or not $190,602 that they gained were the proceeds of crime that they derived directly from the occupiers’ cultivation and sale of commercial quantity of cannabis. Use of grow houses prevalent. Os not involved in cultivation or trafficking. O1 as ‘director’ played greater role having direct contact with occupiers and receiving cash from them. O2 as ‘administrator’ provided sham documentation and banked proceeds. Not worst example of offending.
Offender 1 - No prior convictions, no subsequent convictions, 44 y, husband of O2, came from modest circumstances in Vietnam, work history, good parent to 2 sons and cares for O2’s mother, provides financial assistance to 2 other sons, involved with Buddhist temple, no drug, alcohol or mental health issues, co-operation regarding complex consent confiscation order, suffered significant financial penalty arising from offending, delay, children would experience hardship if both parents incarcerated, disparity, very good rehabilitation prospects.
Smith
[2016] VCC 1054 / 20 July 2016 / Custodial / 11.88 months (361 days) / Knowingly dealing with proceeds of crime (Vic) / G (early) / Offending – O located in hotel room with proceeds of sale ($1200) from co-offender’s offending. O made grave error of judgment in going near money when he realised that co-offender had committed offences against fast food store. Police intervened before O could use money. On lower end of seriousness.
Offender – Prior dishonesty convictions, 43 y male, motive said to be desperation for money, admissions, homeless, sad, unstable and fairly unproductive life, drug use, completion of courses in custody, support of family in Queensland, onerous 358 days in remand in protection with no visits, O to be returned to Metropolitan Assessment Prison so O can make plans to travel to Queensland, no relevant parity considerations, remorse.
Basi [2017] VCC 410 / 7 April 2017 / Combination / 9 months imprisonment - release on RRO after 5 months
12 month (1 year) RRO:
-  $1000 surety / Dealing with money reasonably suspected of being proceeds of crime worth $100,000 or more (Cth) / G (early) / Offending – O and her son (CO) were involved in unauthorised financial transfers from Australian bank accounts through unauthorised mobile phone porting, sim card swapping and mobile phone diversion. Police searched CO’s house and discovered cash, an Apple iPhone and two Nokia mobile phones. Police then searched O’s house and seized $396,480 cash hidden in a bag, intended for money laundering purposes.
Offender – no prior convictions, 49 y female, influenced by family separation of son, borderline IQ, low intellect and emotional state, good prospects of rehabilitation
Nguyen & Do
[2016] VCC 561
Offender 2
/ 6 May 2016 / Suspended sentence / 9 months – wholly suspended for 9 months
/ Recklessly dealing with
proceeds of crime (Vic) / G (early) / Offending – Over 13 months Os were the registered proprietors of 4 properties and they allowed others to use the properties as ‘grow houses’ where cannabis plants were hydroponically cultivated and electrical bypasses were connected. Offending persistently involved use of sham documentation to suggest that legitimate rental income was earned. Os acted recklessly as to whether or not $190,602 that they gained were the proceeds of crime that they derived directly from the occupiers’ cultivation and sale of commercial quantity of cannabis. Use of grow houses prevalent. Os not involved in cultivation or trafficking. O1 as ‘director’ played greater role having direct contact with occupiers and receiving cash from them. O2 as ‘administrator’ provided sham documentation and banked proceeds. Not worst example of offending.
Offender 2 - No prior convictions, no subsequent convictions, 39 y, wife of O1, work history, good parent to 2 sons and cares for her mother, came from modest circumstances in Vietnam, involved with Buddhist temple, no drug, alcohol or mental health issues, co-operation regarding complex consent confiscation order, suffered significant financial penalty arising from offending, delay, children would experience hardship if both parents incarcerated, disparity, very good rehabilitation prospects.
Pham
[2016] VCC 116 / 18 February 2016 / Custodial / 1.64 months (50 days)
(time served)
$10,000 fine / Recklessly dealing with proceeds of crime (Vic) / G / Offending – O’s daughters involved in trafficking large amounts of heroin. $59,950 located in cistern of toilet in O’s bedroom and $59,000 hidden in a child's toy in O’s bedroom. Heroin also located in the premises. O’s daughters responsible for producing the money. O became involved in a broad sense in criminal activities conducted by her daughters out of the family home.
Offender – No prior convictions, 61 y female, sole carer of young granddaughter, work history, not in good health.
Tran & Trang
[2016] VCC 109
Offender 2 / 12 February / CCO
/ 24 month CCO (2 years):
- supervision;
- community work (150 hours); and
- offending behaviour programs.
/ Knowingly dealing with proceeds of crime (Vic). / G (early) / Offending – O1 proprietor of shop that sold health and beauty products. On a daily basis O1 and her husband (O2) received a variety of health and beauty products from large number of shoplifting offenders who had stolen the products from commercial outlets. Property valued at $72,613.98. In exchange for stolen goods the peripheral offenders received 10 – 20% of the items' retail value. O1 primary operator of business. O2 actively involved. Gross dishonesty. Property will be returned to owners.
Offender 2 – No prior convictions, 55 y male, poor English skills, medical issues, offending in context of assisting O1 who was experiencing financial difficulty.

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