CAB in debt after seizing properties

THE Criminal Assets Bureau is not, it seems, immune to the massive losses that have resulted from the property crash.

The organisation have revealed how they have to change how they confiscate the proceeds of crime after it found itself seizing substantial property related debts instead of profits.

In the case of eight property portfolios, out of 13 dealt with in 2010, the Bureau’s receiver took ownership of sites which when sold could not cover the mortgage attached to them.

The bureau said its ultimate aim was to deny criminals the opportunity to benefit from their activities so it continued to take over properties, even where they were in negative equity.

However, it has had to negotiate with banks and borrowers to deliver large write downs on the investments its targets made.

And, according to its annual report, the bureau has had to refocus its collection methods to take control of more valuable assets. It also had to accept that banks were entitled to have the money owed to them paid back.

“Alternative tactics are now being adopted by the bureau, including a greater focus on cash, bank accounts and personalty and the acknowledgement of the right of financial institutions to enforce their own charge held over property which is the proceeds of crime,” it said.

During the year the bureau paid €3.1 million to the Minister for Finance from the proceeds of its work and had another €7.9m in its receivership accounts at the end of the year.

It secured 14 orders against 24 people which were linked to assets worth in excess of €7m.

Fifteen new cases were brought to the court and these mostly related to drug trafficking and prostitution.

In 2010, it demanded €27m worth taxes and interest penalties from people and businesses it brought to court, €4m of this has been paid over. It figures showed €19m of the tax it demanded related to unpaid income tax.

In the social welfare area it recovered money from 85 criminals making wrongful claims and saved the State €633,698 directly.

It also identified €1.7m worth of social welfare overpayments which had been made.

The schemes most prone to abuse were the job seekers allowance and the one parent family payment.

In one instance one person was questioned in relation to a suspected social welfare fraud which the Bureau said involved substantial sums and the Director of Public Prosecutions decided to bring 48 charges under the social welfare fraud act.

The bureau has asked for more staff to improve its ability to investigate social welfare fraud.

And it said while it continues to investigate high-worth individuals it was conscious of the need to chase down lower value assets to ensure the public retained confidence in its methods.

The bureau used its annual report to call for a change in the practice which has allowed criminals remain anonymous during CAB-related court proceedings.

It said there was a “misconception” that all hearings in cases it brings had to be held in private. And it said the habit of only recording the cases in the court diary by a person’s initials may be relevant in the early hearings but was unnecessary for the whole process.

It said the case of MAC Aviation, where the court ruled there was no need for anonymity, should guide policy and it has informed the court registrar of this.