Money trail from gangland crime leads to horses, cars, and gyms
MASSIVE investigation by the Criminal Assets Bureau into the bogus motor trade has highlighted the ways in which major criminal groupings are laundering their cash.
In its most recent operation targeting garages used by organised crime groups, the CAB uncovered a suspected link to the horse racing industry.
The principal target of a CAB operation on April 4 — in which 12 searches were conducted across west Dublin, Kildare, and Meath — was part-owner of a horse that recently won a major race. He was even photographed in the winners’ enclosure celebrating what was a surprise victory.
That win reportedly hit bookies hard in three counties, with one individual said to have made €1m after laying down a €20,000 bet at 50-1.
It is understood CAB is now examining the issue and considering court action in relation to the matter.
One source said it highlighted the “flexibility” of criminal gangs when it came to laundering their profits from criminal activity such as drug trafficking. “The motor trade is a good way to hide cash, so is the horse industry,” he said.
It is thought that, along with the horse industry, the CAB will now look at other industries that would be attractive for criminals, such as gyms. “As well as it being a business heavily based on cash, criminals like horses and are big into gyms,” said the source.
The gym industry has mushroomed in Ireland and some of them are suspected of having links to the burgeoning sale of steroids.
In an interview with the Irish Examiner, Chief Supt Pat Clavin declined to go into the specifics of the recent operation, but did confirm they were examining all businesses linked to suspected criminal gangs.
He said there is a significant and ongoing operation targeting the motor trade.
“CAB, through the use of its customs powers, has looked at a number of car dealers in the greater Dublin area we suspect are involved in organised crime and this has led to the seizure of a number of imported vehicles,” he said.
Chief Supt Clavin said that over 66 vehicles, worth almost €1m, had been seized and subject to “condemnation proceedings” in the courts in two major operations, one last January and another last October.
This targeted a major west Dublin criminal gang, run by a well-known drugs trafficker from Clondalkin.
Chief Supt Clavin said as well as the vehicles being used to launder drugs money, there are various fraud scams, where the proper Vat and VRT rates are not being paid.
He said CAB was working with local detectives and with relevant national units such as the Drugs and Organised Crime Bureau and the Special Crime Task Force, which targets lower to mid-ranking members of criminal gangs.
He said the downturn in the economy after 2008 “created a market for good secondhand cars” and that the bogus motor trade benefited.
The most recent operation on April 4 targeting a separate west Dublin gang led to the revelations regarding the prize-winning horse. A Mercedes-Benz E-Class, worth an estimated €40,000, was seized in that operation.
It was seized under powers introduced by Tánaiste Frances Fitzgerald in 2016, which enabled CAB to seize an asset without first having a court order. That power can last for 21 days before CAB must go to the High Court, which it is expected to do this week. That power has been used four times since it was introduced.
The motor trade, drug trafficking, and money laundering also form the core of CAB’s investigation into the most feared criminal organisation in the country — the Kinahan cartel. It is blamed for all but one of the estimated 11 killings in Ireland and Spain linked to its feud with the Hutch crime group.
CAB, with the assistance of gardaí in the Dublin South division, conducted a dramatic swoop on associates of the cartel here on March 9, 2016.
In one of the homes targeted on Raleigh Square in Crumlin, they had to break through reinforced gates and reinforced front doors to gain entry.
In all, some 29 vehicles, comprising 23 cars and six high-powered motorbikes, were taken from a garage and from homes that day.
Some €100,000 in cash and ten high-value watches were also taken and subject to seizure orders in the High Court.
CAB also moved on four properties, three in Crumlin (including one in Raleigh Square) and one in Clondalkin, west Dublin.
“While the Kinahans themselves are not currently resident in Ireland we’ve taken action as a body in relation to a number of associates here and a number of searches have been carried out,” said Chief Supt Clavin.
“We have opened proceedings in the High Court. All the assets have been lumped into one State application arguing that these are the proceeds of an organised crime gang — the vehicles, the homes, and other assets.”
Chief Supt Clavin said a number of members had been arrested and questioned in relation to suspected money-laundering offences and that a file had just been sent to the DPP in relation to five or six individuals.
This is a separate process — a criminal investigation — to the civil proceedings in the High Court. It is a serious offence, which, on conviction under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, can attract up to 14 years in prison as well as a fine, with no set limit.
The CAB is also carrying out investigations into members of the Hutch criminal network in the north inner city, conducted with the aid of local asset profilers.
Chief Supt Clavin said he had been keen to expand the number of profilers and boost their importance for local divisions, which, he appreciates, have so many demands with their existing staff compliment.
“We have trained up to 252 people in asset profiling,” he said. “They are primarily in the guards, but we have also trained people in Revenue and Social Protection.”
He said local detective superintendents identifies individuals they are concerned about in their divisions.
He said the profilers are trained by CAB and they, in turn, conduct an initial profile of their target and transmit it to CAB offices in Dublin’s Harcourt Square.
“We would consider it and, if deemed suitable, we would take them on board as a full target.”
Chief Supt Clavin believes this is more preferable to setting up local CABs — a long demand of community groups. “I see this as a better alternative to the whole idea of mini-CABs around the country,” he said.
“Our difficulty with the idea of mini-CABs is there is statutory anonymity for bureau staff, which provides for protection [of their identity]. That would be more difficult to achieve if they were based in local areas. It’s easier to secure people in a place like Harcourt Square.”
He said he and his management team have been going out to regions since last August and briefing divisional management about asset profilers and to “instil upon them the need to have appropriately selected and trained people”.
He said they may be detectives, but may also be community gardaí who might have the local knowledge and, crucially, the time for the job.
Chief Supt Glavin said the Dublin North Central Assets Profiling Unit, set up by local commander Chief Supt Pat Leahy, has been busy and is working with CAB.
A parallel development has been the secondment to CAB of six additional gardaí from Dublin (one from each division) who support the needs of the Special Crime Task Force.
That force was also drawn from Dublin divisions and is targeting second-tier members of organised crime groups.
Since it was set up in July 2016, 54 individuals have been examined, in operations that also liaise closely with divisional detectives.
“It’s a new departure and we would see great potential in that work,” said Chief Supt Clavin.
He said building up local asset profiling expertise, one where the gardaí involved have time to devote to the job, is key to identifying criminals earlier and intervening earlier — rather than trying to hit them when they are major players.
This has been a major criticism of local community activists, not least in the Crumlin area, where Kinahan associates openly displayed their wealth for years — in turn pulling vulnerable or willing youths into their clutches.
The long battle against John Gilligan is a reminder both of the legal obstacles CAB sometimes must endure in stripping gang bosses of their wealth and the relentless nature of the bureau.
Following a Supreme Court ruling in March, Gilligan must ensure that three properties, including the bungalow in Jessbrook (when he lives with his wife Geraldine) in north Kildare are vacant by June 6.
“We are actively pursuing obtaining vacant possession,” said Chief Supt Clavin. “We will engage in dialogue either with the Gilligans or their legal representatives.” Cognisant of the individual they are dealing with in Gilligan, he said there were “no signs of any issues”.
He agrees that the eventual outcome underlines CAB’s relentlessness: “It’s something that has been protracted. I’m the sixth bureau officer in CAB and it falls upon me to carry this on. We have to act within the law. A lot of legal precedent has been set. I suppose it’s a satisfying result.”
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