A MAJOR criminal gang invested millions of pounds in legitimate businesses such as apartment blocks and licensed premises principally in Dublin before the Proceeds of Crime Act came into force towards the end of last year, a senior Garda officer told the High Court yesterday.
Det Supt Felix McKenna, of the Criminal Assets Bureau, was giving evidence on the third day of the hearing of a constitutional action taken by Mr John Gilligan, who is on remand in an English prison on drug trafficking charges.
Mr Gilligan's lawyers are challenging the constitutionality of the Proceeds of Crime Act 1996. That statute set up the CAB.
He is taking the action against the CAB Mr Barry Galvin, Inspector of Taxes and chief legal officer, CAB; Mr Frank Lanigan, the Revenue Sheriff of Co Kildare; the Revenue Commissioners and the Attorney General.
Replying to Mr Frank Clarke SC, for the CAB, yesterday Det Supt McKenna said one of the effects of the Proceeds of Crime Act was to force criminals above ground. Before the Act, a lot of money had also been taken out of bank accounts and moved abroad. Several known criminals had also moved their money into legitimate businesses.
Over the last six to seven months, one major criminal gang had put millions of pounds into apartment blocks and licensed premises, principally in Dublin, said Supt McKenna.
Cross examined by Mr David Langwallner, counsel for Mr Gilligan, Supt McKenna said the bureau's function was to establish that there was criminal activity apart from the identification of the person believed to be involved.
Det Supt McKenna said the British police force had prepared a document on the operation of the Proceeds of Crime Act for the British Home Office. Other police forces in Europe were also interested in the legislation because it allowed the CAB powers that similar investigation bodies in their country had not.
He claimed there were about 20 serious criminals operating in this jurisdiction who had about 100 lesser criminals backing them up.
Det Supt McKenna also said that at this time they were not investigating anyone without a previous criminal conviction.
Mr Donal O'Donnell SC, for Ireland and the Attorney General, said there were protections built into the Proceeds of Crime Act so that the court could refuse an application made by CAB for the confiscation if it felt there was a risk of a serious injustice.
Mr O'Donnell said an application for a disposal order could not be made until after a period of seven years. It was an extensive period which allowed the discharge of the confiscation orders made by the court by proving that the assets were not the proceeds of crime.
The hearing continues today before Mrs Justice McGuinness.