Melbourne pokies venue embroiled in $4.7m money laundering scam

Australian authorities have succeeded in recovering $4.7 million and apprehending three members of a criminal group after a 12-month investigation into an alleged money laundering syndicate in Melbourne.

The criminal group in question orchestrated an illegal scheme that included purchasing winning tickets from electronic gaming machines at Greyhounds Entertainment in Melbourne.

The Australian Federal Police (AFP) had organized three search warrants for a commercial residence based in Springvale, Victoria, as well as two lodgings in Noble Park and Springvale South.

The search concluded with the recovery of over $170,000 in cash as well as gold bullions concealed inside plywood in a bedroom at a Springvale South property.

The investigation was carried out by the AFP in conjunction with the National Australia Bank, the Victorian Gambling and Casino Control Commission (VGCC), and the Australian Transaction Reports and Analysis Centre (AUSTRAC), which is responsible for preventing misuse of the financial system by detecting criminal exploitation of the banking system.

Their examinations resulted in bringing charges against three individuals: two middle-aged women – a 61-year-old from Noble Park, a 49-year-old from Springvale South – and a 63-year-old man from Noble Park.

The three partners will be forced to face the Melbourne Magistrates’ Court on Thursday, September 8. They will be charged with infringement of section 400.3 (2A) of the Criminal Code Act 1995. The maximum sentence for their crime is 20 years.

According to the investigations instigated by a report from AUSTRAC, the AFP had claimed that the recovered funds set up in Springvale South were illegal cash, which was a fraction of the bounty the syndicate had laundered through Greyhounds Entertainment.

Reports had suggested that the syndicate partners had compensated numerous patrons of the Sandown Park pokies venue to give up their winning tickets and proceeded to print these tickets in the name of one of the members, which they had put aside in the bank as legitimate gambling winnings.

READ: NSW cracking down on money laundering through pokies

The Chief Executive Officer at VGCC, Annette Kimmitt AM, remarked on how the investigation team had taken the time to cover every aspect of the search to determine the culprits.

“This money laundering network would still be operating it if wasn’t for the forensic approach taken by our dedicated team of analysts and investigators, who put countless hours into reviewing data and footage, and conducting our own covert operations,” she said.

In the data collected by the VGCCC from November 2021 to June 2022, there were various abnormally high volumes of winning cheques issued by Greyhounds compared to other gambling facilities.

The AFP’s acting Assistant Commissioner, Raegan Stewart, urged gambling venues to be on the lookout for possible launderers and all criminal behaviour.

“Licensed clubs and gaming venues should already be on notice that they are a significant risk for money laundering activities, and are often misused by individuals for criminal intent. Police target those seeking to profit from selling drugs or stealing from law-abiding citizens, but venues are reminded they cannot turn a blind eye to criminal activity – the risk and consequences for our communities are too high,” she said.

Stewart did not rule out the possibility of further arrests, especially among players who traded their winning jackpots from gambling machines.

Kimmitt remarked that although further investigations will be ongoing, there was no evidence of the owners of the gambling venues being a part of the laundering scheme.

“There’s nothing to indicate that the shareholders of this venue are involved at this stage. But investigations are ongoing into the venue itself and its staff,” she said.

According to Kimmitt, if further investigations conducted into the Springvale gaming venue yield evidence of an infringement of the Victorian gambling laws, consequently, there will be disciplinary actions taken against the licensee, which may include monetary penalties or license revocations.

Kimmitt concluded that more observations and examinations would take place to sniff out any possible criminal activities.

“This operation shows that as a new regulator with stronger powers we are watching the gambling industry closely and we will work with other agencies to actively pursue and shut down criminal activity,” she said.

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