Drug busts 'forced syndicate bosses to launder cash'
Steve Butcher
August 20, 2008
THE alleged Victorian syndicate bosses behind the world's largest seizure of ecstasy are suspected of laundering more than $11 million - some of it through a Footscray supermarket - primarily to repay their overseas suppliers for its loss.
Authorities say that Pasquale Barbaro, the alleged "co-head" of the syndicate with Saverio Zirilli, arranged with another co-accused to send the money to Singapore-based associates.
The cash transactions, including two alleged $1 million one-day handovers at Sims supermarket in Barkly Street, Footscray, are said to have been conducted between February and July this year.
It is understood that Sims and other companies mentioned in a police summary obtained by The Age were not aware of any illegal activity connected to their businesses.
Barbaro, 46, and Zirilli, 51, are two of more than 20 people charged with major drug or related offences after a 12-month Australian Federal Police and customs investigation.
Also arrested were Rob Karam, 41, an alleged associate of Tony Mokbel, and John Higgs, former president of the Black Uhlans outlaw motorcycle club.
It will be alleged that an undercover operative who posed as a member of an Asian crime syndicate was secretly filmed by Hong Kong police meeting Karam.
The charges followed the seizure in June last year of 4.4 tonnes of ecstasy, comprising 15 million tablets from Italy worth about $440 million, which police kept secret in order to continue their investigations.
An AFP summary sent to prosecution and defence lawyers includes detail from two subsequent operations, codenamed Inca and Cardinia, which involved 187,000 telephone intercepts, 100 search warrants and 20,000 hours of surveillance.
Police accuse Barbaro and Zirilli of primary responsibility for "directing and co-ordinating the importations, trafficking and money-laundering activities of the syndicate".
Police installed surveillance devices in a Carlton unit which they allege was used as a base to "plan and co-ordinate … the trafficking of (ecstasy)".
The summary says that in February this year, Barbaro and co-accused Sharon Fiona Ropa, 37, started laundering the proceeds of drug sales to syndicate members in Europe via Singapore. It says investigations have established that Barbaro and Ropa were responsible for meeting an Australian representative of Yakadir (a Singapore moneychanger) "for the purpose of remitting money obtained from the proceeds of drugs sales".
Police claim to have confirmed that the "Barbaro and Zirilli syndicate has conducted transactions with (the representative) and his associates" at locations in Collins Street, Melbourne, the Sims supermarket in Footscray, Adelaide and other unconfirmed places.
The amounts listed as having been handed over at the supermarket total more than $3.7 million.
Ropa is further accused of conducting transactions that totalled $1.5 million at Sims and $1.6 million in a five-day period last month outside Melbourne's Marriott Hotel.
It is alleged that days before, Barbaro and two others had arranged for the transportation of $5 million from Adelaide to Melbourne.
The summary says that in Operation Inca, authorities used lawfully intercepted telephone communications and conversations between syndicate members to arrange drug trafficking and later collection of money.
Coded references allegedly referring to drugs included "chairs and tables", "tiles", "pumpkins", "invites" and "tickets". In one telephone conversation in February, Barbaro tells one man he was in Sydney "to see a doctor" and that "the tests came out perfect", references that police allege were to successful tests on drugs.
The summary details allegations that syndicate members learned that a container of coffee from South America - which also held 150 kilograms of cocaine - had been found last month by authorities.
The summary also claims that an undercover operative paid $100,000 to a syndicate member she met at the Middle Bar and Cafe in Middle Park in May in return for 11,000 ecstasy pills. In another operation, two accused were seen handling a vegetable box at the back of the Coburg Market that is alleged to have contained ecstasy.
It is expected that some of those in custody will soon apply for bail.