Pubdate: Wed, 20 October 1999  
Source: Irish Independent (Ireland)
Copyright: Independent Newspapers (Ireland) Ltd
Contact:  http://www.independent.ie/
Author: Tom Brady, Security Editor

POUNDS 1M CASH, CHEQUES SEIZED IN BORDER SWOOPS

Gardai and RUC detectives seized up to pounds 1m in cash, cheques and drafts
yesterday in a cross-Border operation yesterday aimed at smashing a
suspected major money laundering operation by drug traffickers.

Last night detectives began checking out a vast network of accounts used by
two bureaux de change in which it is reckoned about pounds 70m was
channelled over the past three years.

Almost 250 police on both sides of the Border searched more than 20 houses,
solicitors' and accountants' offices, financial houses and two boats in a
culmination of a three year investigation into a money trail created by drug
barons.

Four men and three women were being quizzed by detectives in Navan, Kells
and Trim garda stations last night after being arrested in swoops in north
county Louth. An eighth suspect was detained by the RUC in Crossmaglen in
south Armagh.

Most of those arrested here are members of one family. They are being held
under the drug trafficking legislation which means they can be held without
charge for a maximum of seven days.

A team of 70 detectives from the Criminal Assets Bureau, Garda Bureau of
Fraud Investigation and Garda National Drugs Unit were assembled for a
briefing in Dublin on Monday night and were backed up by 30 local gardai
from the Louth-Meath division in the early morning raids yesterday as
Operation Factual swung into action.

The gardai shut down a bureau de change which was allegedly operating
without a licence close to the Border and seized cash, documentation and
computers from the premises after interviewing the staff.

Another bureau de change was raided in Newry by the RUC as part of their
Operation Beaumont and houses were also raided in the North. Gardai also
searched the offices of three accountancy firms and one solicitor's premises
in Dundalk and two solicitors' offices in Dublin and took away files
belonging to certain clients for detailed examination.

Senior officers pointed out last night that a significant proportion of the
money that passed through the bureaux de change was legitimate but they
suspected a large amount was the proceeds of crime and, particularly profits
from drug trafficking.

The joint operation by the CAB and the Fraud Bureau, led by Chief Supt
Fachtna Murphy and Chief Supt Felix McKenna, stemmed from an initial
investigation into the assets of major drug trafficker Paddy Farrell whose
personal fortune from his crimes was estimated to be between pounds 25m and
pounds 40m.

INVESTIGATION

Farrell was shot dead by his girlfriend, Lorraine, who then shot herself, in
a bizarre incident in Drogheda in September 1997 and this led to the
investigation being increased as other drug traffickers sought to take over
Farrell's border empire.

Gardai and RUC chiefs are now satisfied a number of major traffickers used
the bureaux to launder their money including one Mayo man who was jailed
earlier this year and several other Border based operators, possibly
including dealers Brendan "Speedy" Fegan and Paul "Bull" Downey, both shot
dead by the Provisional IRA earlier this year.

Some of the money suspected of being laundered was profits from
international trade in cigarette smuggling which was also linked to Border
criminals. 

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