Drug Busts 'forced Syndicate Bosses To Launder Cash'

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Drug Busts 'forced Syndicate Bosses To Launder Cash'

The Age

Wednesday August 20, 2008

Steve Butcher

THE alleged Victorian syndicate bosses behind the world's largest seizure of ecstasy are suspected of laundering more than $11 million - some of it through a Footscray supermarket - primarily to repay their overseas suppliers for its loss.

Authorities say that Pasquale Barbaro, the alleged "co-head" of the syndicate with Saverio Zirilli, arranged with another co-accused to send the money to Singapore-based associates.

The cash transactions, including two alleged $1 million one-day handovers at Sims supermarket in Barkly Street, Footscray, are said to have been conducted between February and July this year.

It is understood that Sims and other companies mentioned in a police summary obtained by The Age were not aware of any illegal activity connected to their businesses.

Barbaro, 46, and Zirilli, 51, are two of more than 20 people charged with major drug or related offences after a 12-month Australian Federal Police and customs investigation.

Also arrested were Rob Karam, 41, an alleged associate of Tony Mokbel, and John Higgs, former president of the Black Uhlans outlaw motorcycle club.

It will be alleged that an undercover operative who posed as a member of an Asian crime syndicate was secretly filmed by Hong Kong police meeting Karam.

The charges followed the seizure in June last year of 4.4 tonnes of ecstasy, comprising 15 million tablets from Italy worth about $440 million, which police kept secret in order to continue their investigations.

An AFP summary sent to prosecution and defence lawyers includes detail from two subsequent operations, codenamed Inca and Cardinia, which involved 187,000 telephone intercepts, 100 search warrants and 20,000 hours of surveillance.

Police accuse Barbaro and Zirilli of primary responsibility for "directing and co-ordinating the importations, trafficking and money-laundering activities of the syndicate".

Police installed surveillance devices in a Carlton unit which they allege was used as a base to "plan and co-ordinate . . . the trafficking of (ecstasy)".

The summary says that in February this year, Barbaro and co-accused Sharon Fiona Ropa, 37, started laundering the proceeds of drug sales to syndicate members in Europe via Singapore. It says investigations have established that Barbaro and Ropa were responsible for meeting an Australian representative of Yakadir (a Singapore moneychanger) "for the purpose of remitting money obtained from the proceeds of drugs sales".

Police claim to have confirmed that the "Barbaro and Zirilli syndicate has conducted transactions with (the representative) and his associates" at locations in Collins Street, Melbourne, the Sims supermarket in Footscray, Adelaide and other unconfirmed places.

The amounts listed as having been handed over at the supermarket total more than $3.7 million.

Ropa is further accused of conducting transactions that totalled $1.5 million at Sims and $1.6 million in a five-day period last month outside Melbourne's Marriott Hotel.

It is alleged that days before, Barbaro and two others had arranged for the transportation of $5 million from Adelaide to Melbourne.

The summary says that in Operation Inca, authorities used lawfully intercepted telephone communications and conversations between syndicate members to arrange drug trafficking and later collection of money.

Coded references allegedly referring to drugs included "chairs and tables", "tiles", "pumpkins", "invites" and "tickets". In one telephone conversation in February, Barbaro tells one man he was in Sydney "to see a doctor" and that "the tests came out perfect", references that police allege were to successful tests on drugs.

The summary details allegations that syndicate members learned that a container of coffee from South America - which also held 150 kilograms of cocaine - had been found last month by authorities.

The summary also claims that an undercover operative paid $100,000 to a syndicate member she met at the Middle Bar and Cafe in Middle Park in May in return for 11,000 ecstasy pills. In another operation, two accused were seen handling a vegetable box at the back of the Coburg Market that is alleged to have contained ecstasy.

It is expected that some of those in custody will soon apply for bail.

DEALS, DRUGS AND MONEY

ALLEGED TEXT MESSAGES

MAY 8

(Rob Karam and undercover policeman exchange messages about transaction of 11,000 esctasy pills, calling different types of drug "superman", "stamp" and "heart".)

KARAM: We do not have super man but everything else is still available. Do you want me to give yr girl some heart and other stamp? I can do that tomorrow if you like.

POLICEMAN: do you have 11K heart by tomorrow night? what are the other stamps? how good are they?

KARAM: The heart is excellent and you can have as much as you like.

POLICEMAN: OK 11k of heart at the price we agreed. (Later, Karam allegedly talks to Pasquale Barbaro about 50,000 pills)

KARAM: Mate we need 50 and we will only give them out as I promised you and this time the paperwork will be water tight.

BARBARO: Ok and I will call u in the mrn

JULY 29

(After police find 150 kilograms of cocaine in a shipping container among coffee.)

KARAM: Sorry mate I didn't have this with me cos I was with the bloke thats doing it. In his system mate it shows it to be completely fuked and they r sitting off it. He

strongly suggests that we leave it the hell alone cos its completely off mate.

AUGUST 6

(Messages about alleged transfer of pills)

POLICEMAN: hi coffee (Karam's codename), thanks for the payment! my people are ready to start things right away, did your boy talk to you about the sample?

KARAM: Yes, Thanks you sir and we are looking forward to starting .. Thanks again

POLICEMAN: hi coffee, I can arrange for a sample from the 1st batch to be delivered there within the next two weeks. how soon do you want the 1st batch delivered there?

KARAM: Yes that would be great. The sooner the better mate for us we are ready to go

SOME OF THE ALLEGED MONEY OR DRUG TRANSACTIONS CONDUCTED AT OR NEAR:

Sims supermarket, Footscray

$1 million on April 7, 2008.

$1 million on July 30, 2008.

Outside Marriott Hotel, Melbourne

$800,000 on July 30, 2008.

$800,000 on July 31, 2008.

Near Middle Bar & Cafe, Middle Park

Undercover police operative buys 11,000 ecstasy pills for $100,000 from alleged syndicate member on May 10, 2008.

At back of Coburg Market

Two accused seen handling a vegetable box police will claim contained a commercial quantity of ecstasy.