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TRIM REF: CD/15/380910
Asset Confiscation Operations
Asset Confiscation Operations Annual Report 2014 – 15
Asset Confiscation Operations Annual Report 2014-15
Page 2 of 12
OVERVIEW OF VICTORIA’S ASSET CONFISCATION SCHEME Objectives of the Asset Confiscation Scheme
Victoria’s asset confiscation scheme (the Scheme) has the key objective of ensuring
that crime ‘does not pay’. It achieves this objective by denying criminals their ill-
gotten gains, disrupting criminal enterprises and deterring criminal activity. The
Scheme also minimises funds available for investment in future criminal activity and
fosters public confidence in the criminal justice system by depriving criminals of
proceeds of crime.
Legislative Framework
The Confiscation Act 1997 (the Act) underpins the Scheme. The Act provides for:
the restraint of property in certain circumstances so it is preserved to satisfy
confiscation or victim compensation and restitution orders
the exclusion of property from restraint in certain circumstances
property to be forfeited to the State pursuant to court ordered forfeiture following
conviction, and/or automatic forfeiture following conviction, civil forfeiture which
does not rely on a criminal conviction, and unexplained wealth where a person is
not able to satisfy a court that property was lawfully acquired
pecuniary penalty orders to be made requiring a person to pay the State an
amount equivalent to the monetary gains derived from criminal activity and
payment of victim compensation and restitution orders from the proceeds of
forfeited property where applicable.
Organisational Context
The main stakeholders involved in the Scheme are:
Victoria Police – which investigates and identifies property suspected of being
used in, or derived from, criminal activity
Office of Public Prosecutions – which conducts legal proceedings under the Act
on behalf of the State
Asset Confiscation Operations Annual Report 2014-15
Page 3 of 12
Asset Confiscation Operations (in the Department of Justice & Regulation) –
which manages restrained property, disposes of forfeited property and enforces
pecuniary penalty orders on behalf of the State
The Courts – which hear and determine proceedings under the Act.
STATUTORY REPORTING OBLIGATION Subsection 139A(2) of the Act requires law enforcement agencies prescribed for the
purposes of that section to report, as soon as practicable after the end of each
financial year, on certain activities undertaken by the agency. Those activities,
outlined in paragraphs 139A(2)(a)-(f) of the Act, relate to issuing of information
notices, applications for, and issuing and execution of, search and inspection
warrants and the making of document requests under the Act.
In accordance with subsection 139A(2) of the Act, in 2014-15:
Asset Confiscation Operations issued 1,006 information notices
Asset Confiscation Operations made 11 applications for search and inspection
warrants
11 search and inspection warrants were issued to Asset Confiscation Operations
7 search and inspection warrants were executed by Asset Confiscation
Operations
No search and inspection warrants were executed which involved force to enter
the premises; and
Asset Confiscation Operations made 5 document requests under section 120A of
the Act.
Asset Confiscation Operations Annual Report 2014-15
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REVENUE SUMMARY For the 2014-15 financial year the Scheme returned $18.58 million to the
Consolidated Fund. In addition, $1.36 million in compensation payments were made
to victims of crime in accordance with the provisions of the Act.
Table 1 depicts (comparative) annual net proceeds for the Scheme for the period
commencing 1 July 2005 to 30 June 2015.
Table 1: Asset Confiscation Scheme
Net Proceeds returned to Consolidated Fund and Victims of Crime
Financial Year Consolidated Fund
$m Victims of Crime
$m Total
$m
2014/15 18.58 1.36 19.93
2013/14 8.70 1.68 10.39
2012/13 13.72 0.53 14.25
2011/12 13.43 6.43 19.86
2010/11 17.92 2.38 20.30
2009/10 11.93 2.35 14.28
2008/09 15.64 1.91 17.55
2007/08 9.08 0.95 10.02
2006/07 3.50 1.12 4.62
2005/06 6.62 0.78 7.40
Asset Confiscation Operations Annual Report 2014-15
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OPERATION OF CONFISCATION POWERS UNDER THE ACT
Victoria has conviction-based forfeiture, civil forfeiture and since November 2014,
unexplained wealth powers in the Act. The conviction-based powers can be used to
confiscate a person’s property following his or her conviction for an offence. The civil
forfeiture powers do not rely on a criminal conviction, and can be used to forfeit
property that is suspected to be tainted by criminal activity. The unexplained wealth
powers can be used where a person is unable to satisfy the court that property was
lawfully acquired.
The types of confiscation processes underpinning the Act are as follows:
Forfeiture Orders are orders made by the courts and are of a discretionary nature
as a result of the conviction of the person of the relevant offence.
Automatic forfeiture occurs following conviction in relation to tainted property
owned by the accused or where a person is declared a serious drug offender.
These powers apply to serious drug and dishonesty offences.
Civil forfeiture does not rely on a criminal conviction. Instead, the Act provides for
civil forfeiture orders to be made in relation to property that is reasonably
suspected to be tainted by any serious profit-motivated offences. A civil forfeiture
order is mandatory if certain procedural pre-conditions are met, subject to a
hardship discretion.
Unexplained wealth forfeiture will occur 6 months after the making of an
unexplained wealth restraining order where a person is unable to satisfy the court
that the property was lawfully acquired.
Pecuniary Penalty Orders are orders made by the courts against the person to
pay the State the amount assessed by the court as the benefit derived from the
crime. These are civil debts due to the State and enforceable as if an order made
by a court in civil proceedings instituted by the State.
Asset Confiscation Operations Annual Report 2014-15
Page 6 of 12
Table 2 provides details of the source of proceeds paid to the Consolidated Fund.
Table 2: Source of Proceeds Paid to Consolidated Fund 2014-15
Source of Confiscation No of Cases Aggregate Net Value % of Total
Forfeiture Orders 2,192 $7,884,944 42
Automatic Forfeiture 60 $9,020,732 49
Civil Forfeiture Orders 14 $1,395,282 8
Pecuniary Penalty Orders 88 $277,265 1
Totals 2,354 $18,578,223 100%
A Restraining Order can be made in any court and is the basis on which a
confiscation outcome may occur. Restraining Orders preserve the property, or
interests in property, which may be forfeited or is made available to meet a
Compensation Order or a Pecuniary Penalty Order. A Restraining Order can be
made in anticipation of a criminal conviction, on a civil forfeiture or unexplained
wealth basis.
For automatic forfeiture that may occur by law, or for a court to make a civil forfeiture
order, a restraining order is a prerequisite.
In 2014-15, 116 Restraining Orders were made.
Table 3 provides a breakdown of the number of Restraining Orders made during 2014-15 under the different regimes in the Act.
Table 3: Restraining Orders Made in 2014-15
Type of Confiscation Activity Number of Orders
made
Criminal based regime:
forfeiture purpose 76
compensation purpose 27
Civil forfeiture regime 9
Serious Drug Offender regime 4
Unexplained Wealth regime 0
Total 116
Asset Confiscation Operations Annual Report 2014-15
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PROPERTY
Table 4 and Figure 1 provide the number and value range of interests in real property
realised in 2014-15 as a result of either automatic or civil forfeiture. The majority of
interests are valued at up to $200,000.
Table 4: Number and Value of Interests in Real Property Realised in 2014-15
Value Range Number Total
$1 - $100,000 21 $760,900
$100,001 - $200,000 12 $1,611,951
$200,001 - $300,000 4 $1,033,455
$300,001 - $400,000 2 $663,332
$400,001 - $500,000 0 $0
$500,000 + 3 $2,345,004
Totals 42 $6,414,642
Figure 1:
Asset Confiscation Operations Annual Report 2014-15
Page 8 of 12
BANK ACCOUNTS
In 2014-15, 63 bank accounts were forfeited to a total value of $1.07m.
Table 5 and Figure 2 provide the number and value range of bank accounts forfeited
during 2014-15 under the Act where surplus funds were transferred to the
Consolidated Fund.
Table 5: Funds Paid to Consolidated Fund from Bank Accounts Forfeited in 2014-15
Value Range Number Value
$0 - $10,000 16 $74,946
$10,001 - $50,000 9 $196,712
$50,001 + 3 $342,515
Totals 28 $614,173
Figure 2:
Asset Confiscation Operations Annual Report 2014-15
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CASH FORFEITURE
Cash amounts forfeited have been included in this report as it represents 52% of the
total amount of proceeds paid into the Consolidated Fund.
Cash amounts forfeited under discretionary forfeiture constitute a large number of
relatively small amounts. The 1,940 instances from line 1 of Table 6 have an average
value of $1,468. These type of forfeitures were ordered in the Magistrates’ Courts
and generally relate to sums of money found on or in association with offenders.
Discretionary forfeitures of cash are almost all dealt with by Victoria Police
Prosecutors.
Table 6 and Figures 3, 4, & 5 provide a breakdown of cash amounts forfeited using
the three different methods of forfeiture under the Act.
Table 6: Cash Forfeiture in 2014-15
Automatic Forfeiture Civil Forfeiture Discretionary Forfeiture Total Value
Value Range Number Value Number Value Number Value
$0 - $10,000 21 $61,933 2 $11,590 1,940 $2,848,021.21 $2,921,544
$10,001 - $50,000 7 $150,240 0 $0 113 $2,182,119.88 $2,332,360
$50,001 - $100,000 2 $145,845 1 $80,000 6 $478,873.25 $704,719
$100,001 - $500,000 4 $831,110 2 $322,775 11 $1,875,592.40 $3,029,477
$500,000 + 1 $595,000 0 $0 0 $0.00 $595,000
Totals 35 $1,784,128 5 $414,365 2,070 $7,384,607 $9,583,100
Asset Confiscation Operations Annual Report 2014-15
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Figure 3:
Figure 4:
Asset Confiscation Operations Annual Report 2014-15
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Figure 5:
Asset Confiscation Operations Annual Report 2014-15
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FORFEITURE ONLY AUCTIONS BY VICTORIA POLICE 2014-15
Personal items of property subject to forfeiture orders are sold at public auction by
Victoria Police.
Table 7: Personal Items Forfeited 2014-15
Number of cases where a forfeiture order was processed.
Net Proceeds from sale of forfeited personal items of property
1,187 $500,337
Table 8 and Figure 6 depict the number and value range of motor vehicles that were
forfeited by discretionary court order.
Table 8: Disposal of Discretionary Court Forfeited Motor Vehicles 2014-15
Value Range Number of Vehicles Net Proceeds Realised
$1 - $1000 57 $17,459
$1001 - $3000 17 $30,413
$3001 - $5000 3 $11,040
$5001 - $10,000 4 $24,290
$10,001 - $20,000 1 $10,483
$20,001 + 0 $0
TOTAL 82 $93,685
Note: Definition of motor vehicles include: motor cars, motor bikes, trailers, personal water craft, off-road vehicles and agricultural or earthmoving machinery.
Figure 6: