A corrupt National Crime Agency (NCA) officer who stole cryptocurrency from the criminal he helped convict has been ordered to pay more than £1m in compensation, but the criminal will not receive a penny of it.
Paul Chowles, a former intelligence analyst and unit manager, stole 50 Bitcoin from Thomas White, who ran the Silk Road 2.0 dark web marketplace. The cryptocurrency was worth around £60,000 at the time of the theft in 2017, but its value later soared to over £4.3m.
Chowles was this week told to pay £1,066,956.83 in compensation to White as part of a Proceeds of Crime Act hearing. However, the sum will be paid directly to HM Courts and Tribunals Service and seized as part of White's own confiscation order.
How the theft was uncovered
Chowles was part of the NCA team that investigated White, a former Liverpool John Moores University student who operated Silk Road 2.0 under the pseudonym "Dread Pirate Roberts 2". The site traded around $96m of goods, including drugs and computer hacking tools, before White was jailed for five years and four months in April 2019.
White's arrest led to the seizure of a USB stick containing 97 Bitcoin, which he had nicknamed his "retirement wallet". The wallet remained in the NCA's possession for more than two years until May 2017, when Chowles surreptitiously transferred 50 Bitcoin into his own control.
Chowles used a dark web "mixing service" called Bitcoin Fog to disguise the source of the funds before moving them into private accounts. One account, named "Friendly P", used a newly registered email address under the name "P Charles" and was apparently based in the Netherlands.
Spending and discovery
The 44-year-old father-of-three spent around £140,000 of the proceeds in supermarkets, at "various eating and drinking establishments", and on building work and nursery fees. He was arrested at his workplace in May 2022 after suspicion fell upon him following White's release from prison.
White noticed during linked investigations relating to the Proceeds of Crime Act that a quantity of Bitcoin had been withdrawn from his account. A portion of the missing cryptocurrency was later recovered from Chowles' home computer, with further quantities having been cashed in.
Chowles, who had no previous convictions, began working for the NCA as an intelligence officer in 2009 and rose to become a manager in its Bristol-based technical operations unit. He was dismissed without notice following his conviction.
Court outcome
Chowles admitted theft, transferring criminal property and concealing criminal property. He showed no reaction as he was handed five-and-a-half years behind bars.
At the Proceeds of Crime Act hearing on Wednesday, Judge Dennis Watson KC found that Chowles had benefited to the tune of £1,970,759.27 from his criminality. He was ordered to repay £1,810,678.93 within three months or face an additional month in jail, although this is expected to be a formality due to funds currently held in restraint.
Detective Sergeant David Hale, lead financial investigator with the North West Regional Organised Crime Unit's asset recovery team, said: "Paul Chowles abused a position of trust and responsibility for personal financial gain. Today's order ensures that he does not benefit from his criminality and demonstrates our determination to pursue offenders' assets, regardless of their background or former position."
