It reads like a script from The Sopranos: multi-millionaire drug trafficker and gangland murder suspect, Tony Mokbel, is sentenced to 12 years’ jail, while police investigate the local property developer’s whereabouts following his ‘disappearance’ during the trial.
Mokbel was first arrested back in 2000 for importing $2 billion worth of ephedrine; a charge that was later reduced. A separate charge relating to alleged cocaine importation was also laid. Though he was initially granted bail, this was revoked in 2001, around the time that his assets were frozen. Later, the expectations of a lengthy trial delay saw him granted bail again in 2002.
Only recently, the long-running trial in the Victorian Supreme Court ended with a guilty verdict for the importation of two kilograms of pure cocaine. However, before the judgement was handed down, Mokbel vanished (allegedly overseas) and his defence team withdrew from the trial. Despite his absence, the 12-year sentence was imposed. Mr Mokbel’s sister-in-law was ordered to pay to the court the sum of $1 million, representing the amount that had been put up as surety for his appearance when Mokbel was granted bail in 2002.
When arrested, Mr Mokbel’s assets, estimated at $20 million, were frozen by the Victorian County Court. Despite his attempts to overturn the order, claiming it did not make provision for him to meet reasonable living expenses, the Supreme Court upheld the County Court order. More recently, in December 2005, he was served with a $4 million back-tax order as part of a crackdown by federal agencies on organised crime.
At both the state and federal level, legislation exists to extract from offenders the proceeds of their crimes. Measures in place seek to prevent financial profiteering from illegal activities. Orders in relation to property can include the freezing of assets, forfeiture, search and seizure and, ultimately, the confiscation of assets.
The Asset Confiscation Office looks after the enforcement of confiscation orders under the Crimes (Confiscation of Profits) Act 1986 (Vic) and the Confiscation Act 1997 (Vic). Confiscation usually involves the offender surrendering the proceeds of a crime to the state by having property that is used to commit a crime seized and forfeited, or paying back to the state the dollar value of the benefit received as a result of the crime (this is called a Pecuniary Penalty Order).
Seized assets are then usually sold at Auction, the process of which is administered by the Asset Confiscation Office. In some cases, the victim of the crime may be able to seek restitution or compensation from proceeds of the forfeited assets where they have obtained a Compensation Order from the court.
In the Mokbel case, police seized several properties, investments and other assets
from his considerable holdings. Despite this, it is believed that Mokbel was still able to successfully send $20 million overseas around the time of his disappearance. Clearly, it is difficult for authorities to confiscate all the profits of crime, but the chase continues.
More information
From the LIV Bookshop
Criminal Procedure in Victoria, by Richard Fox, $60;
Issues in Australian Crime and Criminal Justice, Chappell & Wilson, $99.
Useful web links
For information about the Asset Confiscation Office, the types of property that can be confiscated, auctions and more visit www.justice.vic.gov.au/assets
