Rented offices in the heart of London’s ultra orth

Rented offices in the heart of London’s ultra orthodox Jewish community became the counting house for millions of pounds of drugs money, a jury heard today (Wed).

More than pnds stlng 6 million of ‘street money’ went through Data House in Stamford Hill to be converted into United States dollars before being smuggled abroad – vast sums being secretly flown to Columbia, infamous for its links to cocaine.

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.

At London’s Southwark Crown Court, Nigel Peters, QC, told a jury of eleven men and one woman: ‘What this case is about is money laundering.

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The court heard four of the six characters featuring in the story were Hassidic Jews, a strict sect within the faith.

He said Customs officers raided the offices 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.

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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.

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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.

Israel, 32, of Cadoxton Road, Stamford Hill, denies 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.

Chartered accountant, Philip Lyons, 55, of Chartley Avenue, Stanmore, Mddx, said to be Jewish but not part of the ultra-orthodox community, has already admitted the two charges.

Two brothers, Simcha and Jacob Kaminski, and Ayreh Cymmerman, all alleged conspirators, are said to have escaped the Customs net – allegedly having been tipped off by Israel.

And Adelko Horvat, again said to be part of the gang, 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.

Mr Peters said Lyons was involved in the ‘footwork’ of the gang – making calculations and opening bank accounts for Continental Business ‘a front’ 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 defendant and his associates under observation and tracked the money.

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Mr Peters said samples of sterling changed by the gang were sent for scientific analysis.

Tests showed notes bore higher than normal coatings of heroin, ecstasy, and cocaine.

‘Most of the money going into our pockets is contaminated with cocaine,’ said Mr Peters.

‘Very often in small quantities.

‘Scientists saw unusually, heroin and ecstasy contamination, and a higher than normal coating of cocaine on the money.

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And members of the gang ignored a warning by their Rabbi not to undertake a trip to Columbia because flight times would clash with the Sabbath, the jury heard.

Two of the three making the Club Class trip via Madrid were Hassidic Jews – Kaminski and Cymmerman – were in touch with the religious leader.

Mr Peters told the court: ‘The two were members of this Jewish community and in keeping with their faith, quite properly as one might expect, would want to keep the Sabbath in accordance with Jewish law.

‘The Rabbi was concerned the flight they were taking would mean they ran the risk of arriving after the Sabbath commenced.

He advised them against flying.

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However, the holy man did supply details of hotels near a synagogue and the details of services.

The court heard the Friday trip on February 16 this year went ahead – the two men arriving too late to attend evening services.

It may have been an omen – the two Jewish men passed through immigration and Customs, but Adelko Horvat was stopped.

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

‘Mr Horvat now resides in a Colombian prison.

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The cash 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.

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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.

The trial continues.

ends