The ultra-Orthodox Jewish community has been rocke

The ultra-Orthodox Jewish community has been rocked to learn ‘respected’ members of the faith were running a ‘highly organised’ criminal operation to wash ‘street money’ clean in their midst.

A property developer and a once trusted chartered accountant were today (Friday) jailed for nine and seven years respectively for their part in a ‘massive’ international enterprise.

Over pnds stlng 6 million of drugs money was converted into foreign currency to be secretly shipped abroad – much of it to be recycled to buy fresh supplies of drugs.

And rented offices in the heart of London’s strict Hassidic community became the counting house for the laundering operation.

London’s Southwark Crown Court heard four of a six-strong gang were highly regarded members of the religious sect.

Abraham Israel, 32, of Cadoxton Road, Stamford Hill, north London, was found guilty of conspiracy to convert a quantity of property representing the proceeds of drug trafficking, and, or, criminal conduct, and conspiring to remove the same from the jurisdiction between June 2000 and March this year and jailed for nine years.

Chartered accountant Lyons, 55, of Chartley Avenue, Stanmore, Mddx, said to be Jewish but not part of the ultra-orthodox community, had pleaded guilty to the same charges at an earlier hearing before Israel’s two week trial and was jailed for seven years.

The court heard he has a previous conviction for conspiracy to defraud in the United States.

He was also disqualified from being a company director for 10 years.

Israel’s wife, sitting in a packed public gallery, broke down in hysterical sobs as sentence was passed, other friends and relations audibly gasped.

Judge Geoffrey Rivlin, QC, said: ‘It is a sad day indeed when a court has to sentence men such as you for the part you have played in a massive money laundering operation.

‘It could hardly be a more serious or determined offence of its kind.

‘

He said offices at Data House, 43-45, Stamford Hill, North London, rented by Israel and became the ‘hub’ of the gang’s operation, although Lyons, ran a ‘branch office’ from his home.

The judge said: ‘Anyone who has followed through the day to day progress of this criminal business cannot fail to be aware of the scheming and very careful planning that went into it.

‘And the ready access this highly organised conspiracy had to vast amounts of drugs money and criminal contacts abroad.

‘

And Judge Rivlin said money was being ferried to such notorious destinations as Columbia ‘where, no doubt, the cycle was to begin again.

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The judge said after defence submission he would ‘generously’ accept Israel was knowingly involved in pnds stlng 3 million of the laundering and Lyons’ was linked to pnds stlng 2 million.

But he continued: ‘This was organised crime on a large scale and you both played your part.

‘It was an essential part in a terrible trade that does untold harm to others.

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The ‘street money’ literally came from all over the country, the used notes, found to bear ‘unusually high’ traces of heroin, ecstasy, and cocaine, included significant amounts of Scottish and Northern Irish paper money.

Prosecutor Nigel Peters, QC, said Customs officers raided Data House on March 6 this year and found defendant Abraham Israel present, along with US dollars 732,229 in ‘crisp’ 100 and 50 bills.

The money had just been converted at two banks into the ‘prime international currency’, which also conveniently reduced the bulk of the cash.

‘Had Customs and Excise not intervened, this money would have found its way out of the country,’ said Mr Peters.

‘The prosecution say this money is the proceeds of a criminal organisation, more likely than not drugs.

‘

He said the offices had been rented by Israel the previous summer.

‘For six months prior to this defendant’s arrest, the prosecution are able to show that currency exchanges between October 16 last year, and March 6, of over
pnds stlng 6 million.

‘

Mr Peters said the exact total converted from sterling was pnds stlng 6,235,130 – changed into dollars 9 million, as well as pnds stlng 45,000 Swiss Francs and pnds stlng 80,000 Dutch Guilders.

‘Vast quantities of street money, because that is what it was, was coming into the possession of this defendant and others, being transferred into in the main US dollars, and then shipped out of the country,’ said counsel.

Mr Peters said the street money arrived loose and uncounted – the gang purchasing a money counter to tally amounts and bundling up the notes before exchanging them at the Royal Bank of Scotland and TTT Money Corps.

Customs were also able to prove a vast array of international travel to France, Spain, Israel and Columbia by members of the gang during the conspiracy.

Two brothers, Simcha – the organisations ‘Mr Big’ – and Jacob Kaminski, and Ayreh Cymmerman, all alleged conspirators and members of the Hassidic community, are said to have escaped the Customs net – allegedly having been tipped off by Israel.

And Adelko Horvat, is languishing in a Columbian gaol after being stopped at immigration with dollars 900,000 – pnds stlng 600,000 – strapped to his chest in February.

The incident became the ‘Columbian fiasco’ but did nothing to halt the operation.

Mr Peters said Lyons was involved in the ‘footwork’ of the gang – making calculations and opening bank accounts for Continental Business ‘a front company’ for the money launderers.

He said Lyons opened the accounts on the basis sterling was being imported into Britain to be exchanged into dollars because it was ‘more economic and cheaper’ than making the transactions in the State of Israel.

The accountant maintained in Israel the deal required sterling first being changed into shekels before being converted into dollars.

‘As a matter of practicality and banking practice, that does not make any sense in the real world,’ added Mr Peters.

The tale aroused suspicions – which were further heightened by the ‘unusually high’ numbers of Scottish and Northern Irish notes.

Mr Peters explained the Royal Bank of Scotland viewed it as abnormal because overseas countries did not normally have these types of notes for exchange.

As a result Customs were informed.

‘That is how Customs and Excise became involved and kept various premises, the defendants and their associates under observation and tracked the money.

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On February 15, this year, Horvat and other two members of the gang flew to Bogata – after the Club Class flight, Horvat was detained at immigration.

‘Found on him was US dollars 900,000,’ said Mr Peters.

‘Mr Horvat now resides in a Colombian prison.

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The equivalent of pnds stlng 625,000 was strapped to the man’s chest with personalised luggage straps in the name of Weinfield.

The Crown allege Simcha Kaminski used the alias Daniel Weinfield.

From the hotel bill, it could be shown that calls were made from Columbia back to Lyons and Israel before the remaining pair flew home.

Simcha Kaminski lived at Bethune Road, Stamford Hill, where Customs officers were to find pnds stlng 197,665 in cash.

He had ‘flown the net’ when officers arrived on March 6 this year – the same day the operation was closed down.

‘The prosecution say he had been warned, tipped off, and that could only have been by Abraham Israel,’ said Mr Peters.

‘There was evidence of recent occupation.

A warm kettle and a burning candle.

‘But importantly a mobile ‘phone which remained open.

Curiously on the display panel which shows the number of the caller, was the mobile telephone number of Israel.

‘

The line was still live – officers were able to hear background ‘activity’ allegedly from Data House, where Israel was about to be arrested and where investigators were seizing vital documents.

‘Whoever was at Bethune Road put the telephone down and did a runner as quickly as possible – without even turning it off,’ added the prosecutor.

The jury heard as Customs continued to make raids, more than pnds stlng 100,000 in cash was found at Lyons’ home.

ends