Asset Confiscation Operations

TRIM REF: CD/15/380910

Asset Confiscation Operations

Asset Confiscation Operations Annual Report 2014 – 15

Asset Confiscation Operations Annual Report 2014-15

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OVERVIEW OF VICTORIA’S ASSET CONFISCATION SCHEME Objectives of the Asset Confiscation Scheme

Victoria’s asset confiscation scheme (the Scheme) has the key objective of ensuring

that crime ‘does not pay’. It achieves this objective by denying criminals their ill-

gotten gains, disrupting criminal enterprises and deterring criminal activity. The

Scheme also minimises funds available for investment in future criminal activity and

fosters public confidence in the criminal justice system by depriving criminals of

proceeds of crime.

Legislative Framework

The Confiscation Act 1997 (the Act) underpins the Scheme. The Act provides for:

the restraint of property in certain circumstances so it is preserved to satisfy

confiscation or victim compensation and restitution orders

the exclusion of property from restraint in certain circumstances

property to be forfeited to the State pursuant to court ordered forfeiture following

conviction, and/or automatic forfeiture following conviction, civil forfeiture which

does not rely on a criminal conviction, and unexplained wealth where a person is

not able to satisfy a court that property was lawfully acquired

pecuniary penalty orders to be made requiring a person to pay the State an

amount equivalent to the monetary gains derived from criminal activity and

payment of victim compensation and restitution orders from the proceeds of

forfeited property where applicable.

Organisational Context

The main stakeholders involved in the Scheme are:

Victoria Police – which investigates and identifies property suspected of being

used in, or derived from, criminal activity

Office of Public Prosecutions – which conducts legal proceedings under the Act

on behalf of the State


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Asset Confiscation Operations (in the Department of Justice & Regulation) –

which manages restrained property, disposes of forfeited property and enforces

pecuniary penalty orders on behalf of the State

The Courts – which hear and determine proceedings under the Act.

STATUTORY REPORTING OBLIGATION Subsection 139A(2) of the Act requires law enforcement agencies prescribed for the

purposes of that section to report, as soon as practicable after the end of each

financial year, on certain activities undertaken by the agency. Those activities,

outlined in paragraphs 139A(2)(a)-(f) of the Act, relate to issuing of information

notices, applications for, and issuing and execution of, search and inspection

warrants and the making of document requests under the Act.

In accordance with subsection 139A(2) of the Act, in 2014-15:

Asset Confiscation Operations issued 1,006 information notices

Asset Confiscation Operations made 11 applications for search and inspection

warrants

11 search and inspection warrants were issued to Asset Confiscation Operations

7 search and inspection warrants were executed by Asset Confiscation

Operations

No search and inspection warrants were executed which involved force to enter

the premises; and

Asset Confiscation Operations made 5 document requests under section 120A of

the Act.


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REVENUE SUMMARY For the 2014-15 financial year the Scheme returned $18.58 million to the

Consolidated Fund. In addition, $1.36 million in compensation payments were made

to victims of crime in accordance with the provisions of the Act.

Table 1 depicts (comparative) annual net proceeds for the Scheme for the period

commencing 1 July 2005 to 30 June 2015.

Table 1: Asset Confiscation Scheme

Net Proceeds returned to Consolidated Fund and Victims of Crime

Financial Year Consolidated Fund

$m Victims of Crime

$m Total

$m

2014/15 18.58 1.36 19.93

2013/14 8.70 1.68 10.39

2012/13 13.72 0.53 14.25

2011/12 13.43 6.43 19.86

2010/11 17.92 2.38 20.30

2009/10 11.93 2.35 14.28

2008/09 15.64 1.91 17.55

2007/08 9.08 0.95 10.02

2006/07 3.50 1.12 4.62

2005/06 6.62 0.78 7.40


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OPERATION OF CONFISCATION POWERS UNDER THE ACT

Victoria has conviction-based forfeiture, civil forfeiture and since November 2014,

unexplained wealth powers in the Act. The conviction-based powers can be used to

confiscate a person’s property following his or her conviction for an offence. The civil

forfeiture powers do not rely on a criminal conviction, and can be used to forfeit

property that is suspected to be tainted by criminal activity. The unexplained wealth

powers can be used where a person is unable to satisfy the court that property was

lawfully acquired.

The types of confiscation processes underpinning the Act are as follows:

Forfeiture Orders are orders made by the courts and are of a discretionary nature

as a result of the conviction of the person of the relevant offence.

Automatic forfeiture occurs following conviction in relation to tainted property

owned by the accused or where a person is declared a serious drug offender.

These powers apply to serious drug and dishonesty offences.

Civil forfeiture does not rely on a criminal conviction. Instead, the Act provides for

civil forfeiture orders to be made in relation to property that is reasonably

suspected to be tainted by any serious profit-motivated offences. A civil forfeiture

order is mandatory if certain procedural pre-conditions are met, subject to a

hardship discretion.

Unexplained wealth forfeiture will occur 6 months after the making of an

unexplained wealth restraining order where a person is unable to satisfy the court

that the property was lawfully acquired.

Pecuniary Penalty Orders are orders made by the courts against the person to

pay the State the amount assessed by the court as the benefit derived from the

crime. These are civil debts due to the State and enforceable as if an order made

by a court in civil proceedings instituted by the State.


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Table 2 provides details of the source of proceeds paid to the Consolidated Fund.

Table 2: Source of Proceeds Paid to Consolidated Fund 2014-15

Source of Confiscation No of Cases Aggregate Net Value % of Total

Forfeiture Orders 2,192 $7,884,944 42

Automatic Forfeiture 60 $9,020,732 49

Civil Forfeiture Orders 14 $1,395,282 8

Pecuniary Penalty Orders 88 $277,265 1

Totals 2,354 $18,578,223 100%

A Restraining Order can be made in any court and is the basis on which a

confiscation outcome may occur. Restraining Orders preserve the property, or

interests in property, which may be forfeited or is made available to meet a

Compensation Order or a Pecuniary Penalty Order. A Restraining Order can be

made in anticipation of a criminal conviction, on a civil forfeiture or unexplained

wealth basis.

For automatic forfeiture that may occur by law, or for a court to make a civil forfeiture

order, a restraining order is a prerequisite.

In 2014-15, 116 Restraining Orders were made.

Table 3 provides a breakdown of the number of Restraining Orders made during 2014-15 under the different regimes in the Act.

Table 3: Restraining Orders Made in 2014-15

Type of Confiscation Activity Number of Orders

made

Criminal based regime:

forfeiture purpose 76

compensation purpose 27

Civil forfeiture regime 9

Serious Drug Offender regime 4

Unexplained Wealth regime 0

Total 116


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PROPERTY

Table 4 and Figure 1 provide the number and value range of interests in real property

realised in 2014-15 as a result of either automatic or civil forfeiture. The majority of

interests are valued at up to $200,000.

Table 4: Number and Value of Interests in Real Property Realised in 2014-15

Value Range Number Total

$1 - $100,000 21 $760,900

$100,001 - $200,000 12 $1,611,951

$200,001 - $300,000 4 $1,033,455

$300,001 - $400,000 2 $663,332

$400,001 - $500,000 0 $0

$500,000 + 3 $2,345,004

Totals 42 $6,414,642

Figure 1:


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BANK ACCOUNTS

In 2014-15, 63 bank accounts were forfeited to a total value of $1.07m.

Table 5 and Figure 2 provide the number and value range of bank accounts forfeited

during 2014-15 under the Act where surplus funds were transferred to the

Consolidated Fund.

Table 5: Funds Paid to Consolidated Fund from Bank Accounts Forfeited in 2014-15

Value Range Number Value

$0 - $10,000 16 $74,946

$10,001 - $50,000 9 $196,712

$50,001 + 3 $342,515

Totals 28 $614,173

Figure 2:


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CASH FORFEITURE

Cash amounts forfeited have been included in this report as it represents 52% of the

total amount of proceeds paid into the Consolidated Fund.

Cash amounts forfeited under discretionary forfeiture constitute a large number of

relatively small amounts. The 1,940 instances from line 1 of Table 6 have an average

value of $1,468. These type of forfeitures were ordered in the Magistrates’ Courts

and generally relate to sums of money found on or in association with offenders.

Discretionary forfeitures of cash are almost all dealt with by Victoria Police

Prosecutors.

Table 6 and Figures 3, 4, & 5 provide a breakdown of cash amounts forfeited using

the three different methods of forfeiture under the Act.

Table 6: Cash Forfeiture in 2014-15

Automatic Forfeiture Civil Forfeiture Discretionary Forfeiture Total Value

Value Range Number Value Number Value Number Value

$0 - $10,000 21 $61,933 2 $11,590 1,940 $2,848,021.21 $2,921,544

$10,001 - $50,000 7 $150,240 0 $0 113 $2,182,119.88 $2,332,360

$50,001 - $100,000 2 $145,845 1 $80,000 6 $478,873.25 $704,719

$100,001 - $500,000 4 $831,110 2 $322,775 11 $1,875,592.40 $3,029,477

$500,000 + 1 $595,000 0 $0 0 $0.00 $595,000

Totals 35 $1,784,128 5 $414,365 2,070 $7,384,607 $9,583,100


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Figure 3:

Figure 4:


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Figure 5:


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FORFEITURE ONLY AUCTIONS BY VICTORIA POLICE 2014-15

Personal items of property subject to forfeiture orders are sold at public auction by

Victoria Police.

Table 7: Personal Items Forfeited 2014-15

Number of cases where a forfeiture order was processed.

Net Proceeds from sale of forfeited personal items of property

1,187 $500,337

Table 8 and Figure 6 depict the number and value range of motor vehicles that were

forfeited by discretionary court order.

Table 8: Disposal of Discretionary Court Forfeited Motor Vehicles 2014-15

Value Range Number of Vehicles Net Proceeds Realised

$1 - $1000 57 $17,459

$1001 - $3000 17 $30,413

$3001 - $5000 3 $11,040

$5001 - $10,000 4 $24,290

$10,001 - $20,000 1 $10,483

$20,001 + 0 $0

TOTAL 82 $93,685

Note: Definition of motor vehicles include: motor cars, motor bikes, trailers, personal water craft, off-road vehicles and agricultural or earthmoving machinery.

Figure 6:

Asset Confiscation Operations

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