A cryptocurrency gang has been convicted of running a large-scale money laundering operation linked to a convicted drug trafficker. The six individuals were found guilty of a charge under the Proceeds of Crime Act following a trial at the High Court in Glasgow.
The group acted together and with others in a scheme involving criminal property, according to prosecutors. They received, deposited, transferred, exchanged and organised the transmission of cryptocurrency and cash by putting it into bank accounts and digital cash wallets on behalf of others. The indictment originally featured a figure of "over £6million", but this was later amended to "a sum of money".
Cash Found Hidden in Shop Ceiling
Police raided the Day to Day shop in Rutherglen, Lanarkshire, where Aftab Allah and other relatives worked. Officers found tens of thousands of pounds hidden in a Nike bag in the ceiling space, along with a large haul of banknotes stuffed into a padlock bag and a Snickers box. An image of cash recovered from Aftab Allah's mobile phone was also shown to the court.
Gary Morris, a Scots drugs boss jailed for trafficking millions of pounds of cocaine, was a central figure in the case. In his evidence, Shehbaz Allah told jurors the drug trafficker was a "family friend" who he believed was involved in the building trade and also had an interest in cars.
Defendant Claims Cash Was From Bitcoin Trading
Allah said he and the other man "once or twice" tried to go into business together, including renting out an expensive Audi RS6 and plans to buy a caravan at a holiday park. He insisted he did not know the man was involved in high-level criminality.
Allah told the trial some of the cash belonged to him from legal cryptocurrency trading, while the majority belonged to the drug dealer. He said he had been asked to keep it as the criminal had "problems with his business banking" as his account had been frozen. Asked by his KC Mark Moir why it was stored in the roof space of the shop, he replied that he had put it there, but that other staff were unaware.
The court was also told of a photo of £300,000 in cash being snapped by one of the gang. Allah claimed the money was his from buying and selling Bitcoin, and that some of the funds went on getting an extension built on his house.
Prosecutor Alleges Gang Acted as Administrators
Prosecutor Erin Campbell put to Allah that he had been "instrumental" in helping open up different accounts to shift and hide the dirty cash. She also said he had a "network of people" he could deal in cryptocurrency with, which could be an advantage to a drug dealer with "a lot of money" who wanted to keep "as much distance as possible" from where it came from. Allah denied this.
Miss Campbell also said putting expensive cars in Allah's name could make it more difficult for authorities to seize them if the trafficker was caught. She put to him: "You knew him well enough to embark on a business adventure, but you had no idea that he was dealing in drugs?" Allah: "No, never." The prosecutor further stated: "You and your brother were administrators for his money. You were responsible for hiding assets for quite some time. You were effectively his PA (personal assistant)." Allah: "No."
The court heard this also included arranging and paying for flights and hotels for the trafficker. The convicted individuals are Aftab Allah, 36, his brother Shehbaz Allah, 40, Hamzah Habib, 38, Kamran Javid, 33, Asim Afzal, 34, and Imad Younis, 37. They were remanded in custody by judge Lady Poole and face a maximum 14-year jail term when sentenced next month in Edinburgh.
Lady Poole told them: "Money laundering is a serious offence. It enables those responsible for crime to conceal and transfer criminal proceeds. This, in turn, allows criminal enterprises to remain operational, reinvest profits and expand their activities. Organised crime often generates wider criminality blighting lives and communities. I refuse the applications for you to remain on bail and it is revoked."
Detective Sergeant Lesley Buchanan-Barlas said: "Targeting those involved in the handling of illicitly sourced funds remains a priority for Police Scotland. Cases like this show our commitment to detecting and disrupting such activities and is a reminder that this is taken seriously. We continue to work with partner agencies to fully investigate such incidents and hold those responsible accountable for their actions."
The gang face a separate confiscation hearing likely next year under the Proceeds of Crime Act. Prosecutors have also moved for the first three to be hit with Serious Crime Prevention Orders.
