Browse content similar to 13/12/2016. Check below for episodes and series from the same categories and more!
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A Spotlight investigation sparks a raid by armed | 0:17:41 | 0:17:45 | |
fraud investigators in Holland. | 0:17:45 | 0:17:47 | |
It's a move to close down a link in a global mail fraud | 0:17:49 | 0:17:53 | |
taking millions every year. | 0:17:53 | 0:17:55 | |
Their actions prompted by our story | 0:17:58 | 0:18:01 | |
of an elderly scam victim from Northern Ireland. | 0:18:01 | 0:18:04 | |
I just felt devastated completely, | 0:18:04 | 0:18:07 | |
because...I knew all the money was gone. | 0:18:07 | 0:18:09 | |
Spotlight follows the money trail to Holland. | 0:18:11 | 0:18:14 | |
What do you do with the money? | 0:18:15 | 0:18:16 | |
Our investigation uncovers links to the United States. | 0:18:18 | 0:18:21 | |
Make no mistake, these operations are serious business. | 0:18:22 | 0:18:26 | |
They're massive in scale and global in scope. | 0:18:26 | 0:18:29 | |
It leads us to Switzerland. | 0:18:30 | 0:18:32 | |
Hi, my name's Chris Moore, I'm from the BBC in Northern Ireland, | 0:18:34 | 0:18:37 | |
and I'm looking for Mr Spaar. | 0:18:37 | 0:18:40 | |
And we go to the Isle of Man... | 0:18:41 | 0:18:42 | |
Mr Davis, could I have a word? | 0:18:42 | 0:18:44 | |
'..to confront an executive of a chain of companies the US | 0:18:44 | 0:18:47 | |
'government describes as a criminal money-laundering organisation.' | 0:18:47 | 0:18:52 | |
Do you not think the elderly people in Northern Ireland | 0:18:52 | 0:18:55 | |
-who've lost money are deserving of an explanation? -No comment. | 0:18:55 | 0:18:58 | |
Mail scam is a lucrative business that rakes in millions every year. | 0:19:24 | 0:19:29 | |
A year ago we exposed one of the key players of an international scam. | 0:19:31 | 0:19:35 | |
But what we want to know now is where does all that money end up? | 0:19:37 | 0:19:42 | |
Our starting point is the story of Elizabeth. | 0:19:59 | 0:20:01 | |
Last December we told how she lost her life savings to scammers, | 0:20:02 | 0:20:06 | |
a staggering £180,000 in a 12-month period. | 0:20:06 | 0:20:13 | |
Most of her money was taken in elaborate telephone scams, | 0:20:13 | 0:20:17 | |
but for the rest of it, Elizabeth became a victim of mail-fraud scams. | 0:20:17 | 0:20:22 | |
How much do you think you were spending in a week? | 0:20:25 | 0:20:28 | |
How much were you sending away? | 0:20:28 | 0:20:31 | |
Well, I'd keep enough for the petrol for the car | 0:20:31 | 0:20:34 | |
and some for my food for myself. | 0:20:34 | 0:20:36 | |
But the rest I...spent on... | 0:20:36 | 0:20:40 | |
..on that there. | 0:20:41 | 0:20:43 | |
The letter scams began after her husband died. | 0:20:46 | 0:20:50 | |
She felt isolated and depressed, | 0:20:50 | 0:20:53 | |
factors that can make people vulnerable to scams. | 0:20:53 | 0:20:57 | |
Letters started to come, you know, the Netherlands. | 0:20:57 | 0:21:02 | |
I thought, well, it's international and it must be OK. | 0:21:02 | 0:21:06 | |
Elizabeth was getting unsolicited letters like these | 0:21:08 | 0:21:12 | |
offering big cash rewards for an advance-fee payment. | 0:21:12 | 0:21:15 | |
You're guaranteed thousands of pounds in return for | 0:21:17 | 0:21:20 | |
a relatively small sum of between £25 and £30. | 0:21:20 | 0:21:24 | |
But in fact, every time you're asked to send money off first for | 0:21:26 | 0:21:30 | |
what is supposed to be a guaranteed prize, you become a victim of fraud. | 0:21:30 | 0:21:35 | |
It's called an advance-fee fraud, and very simply, they make | 0:21:38 | 0:21:41 | |
a very attractive proposition to you | 0:21:41 | 0:21:43 | |
that they are going to give you a certain amount of money | 0:21:43 | 0:21:46 | |
but you have to pay a certain amount of money up front. | 0:21:46 | 0:21:49 | |
That WILL be a fraud. | 0:21:50 | 0:21:53 | |
Fall for it just once and you go on a list prepared, maintained | 0:21:55 | 0:22:00 | |
and shared by the criminals who've conned you into paying up front. | 0:22:00 | 0:22:05 | |
This is known as the suckers list. | 0:22:05 | 0:22:08 | |
It's just like being hypnotised. | 0:22:09 | 0:22:11 | |
You're going to win this big amount of money and you'll be able | 0:22:11 | 0:22:15 | |
to buy what you want when you get it. | 0:22:15 | 0:22:18 | |
But...nothing ever appeared. | 0:22:18 | 0:22:20 | |
It was just like a drug. | 0:22:21 | 0:22:23 | |
The scammers buy the so-called suckers lists from each other. | 0:22:25 | 0:22:29 | |
Once your name is on a suckers list your name and your address | 0:22:30 | 0:22:35 | |
never comes off. | 0:22:35 | 0:22:36 | |
Your details are continually shared between scammers right around | 0:22:36 | 0:22:40 | |
the world. So the scam mail's not going to stop. | 0:22:40 | 0:22:43 | |
Scam phone calls isn't going to stop. | 0:22:43 | 0:22:46 | |
You will be repeatedly targeted. | 0:22:46 | 0:22:48 | |
Most of those targeted are elderly. | 0:22:51 | 0:22:54 | |
From my experience, | 0:22:55 | 0:22:57 | |
the bulk of people responding to scam mail would be older persons. | 0:22:57 | 0:23:01 | |
Many pensioners like Elizabeth are unfamiliar with social media | 0:23:02 | 0:23:06 | |
and online banking. | 0:23:06 | 0:23:08 | |
They're retired and most likely to still use cheques. | 0:23:09 | 0:23:13 | |
The Trading Standards fraud team use the suckers list to identify | 0:23:23 | 0:23:28 | |
those at risk, and part of Beverley Burns' job is to call in with them. | 0:23:28 | 0:23:33 | |
Today she's on her way to Newry to speak to a victim. | 0:23:40 | 0:23:44 | |
-Hello, Charlie. -Hello, Beverley. Nice to see you again, love. | 0:23:47 | 0:23:49 | |
Lovely to see you. How are you keeping? | 0:23:49 | 0:23:52 | |
'I will look through post that he's getting and try to identify | 0:23:52 | 0:23:56 | |
'scam letters, | 0:23:56 | 0:23:57 | |
'or if there's information that I can gather from him which will be | 0:23:57 | 0:24:00 | |
'of use to the national scams team.' | 0:24:00 | 0:24:02 | |
I see this letter here has an address in the Netherlands, Charlie. | 0:24:04 | 0:24:07 | |
I know. | 0:24:07 | 0:24:09 | |
I would see a lot of scam post with addresses in the Netherlands, | 0:24:09 | 0:24:12 | |
you know, so you just need to be really, really careful that, | 0:24:12 | 0:24:17 | |
you know, you don't pick up the pieces and start responding again. | 0:24:17 | 0:24:20 | |
Oh, no, I won't. | 0:24:20 | 0:24:21 | |
I mean, I thought I was savvy, coming from London and that, | 0:24:21 | 0:24:25 | |
but I wasn't, I was stupid. | 0:24:25 | 0:24:28 | |
Charlie says he has stopped replying to unsolicited mail since | 0:24:29 | 0:24:33 | |
Beverley first called to see him. | 0:24:33 | 0:24:36 | |
You know, it's music to my ears whenever I hear that someone | 0:24:36 | 0:24:39 | |
has stopped sending money off, | 0:24:39 | 0:24:41 | |
cos it's important that people realise that these are | 0:24:41 | 0:24:43 | |
-out-and-out criminals who are just out to take your money. -Yeah. | 0:24:43 | 0:24:47 | |
Elizabeth was not so fortunate. | 0:24:50 | 0:24:52 | |
When did you first realise that... | 0:24:54 | 0:24:57 | |
that you'd been involved in scams? | 0:24:57 | 0:25:00 | |
Well... | 0:25:01 | 0:25:02 | |
When the police came to the house and told me that this is all a scam. | 0:25:04 | 0:25:08 | |
You know, different things like that and... | 0:25:08 | 0:25:11 | |
I just felt devastated completely, | 0:25:11 | 0:25:13 | |
because...I knew all the money was gone. | 0:25:13 | 0:25:16 | |
The sheer number of scam letters asking Elizabeth to send money | 0:25:21 | 0:25:25 | |
to post office boxes in Holland needs to be seen to be believed. | 0:25:25 | 0:25:30 | |
A year ago we went to Holland to track down the owner of some | 0:25:35 | 0:25:38 | |
of those PO boxes. | 0:25:38 | 0:25:40 | |
We discovered that many belonged to this man, Erik Dekker, | 0:25:42 | 0:25:47 | |
a Utrecht businessman and owner of | 0:25:47 | 0:25:50 | |
a mail-packaging company called Trends. | 0:25:50 | 0:25:53 | |
Erik Dekker had at least 150 PO boxes. | 0:25:54 | 0:25:58 | |
In sifting through Elizabeth's scam mail, | 0:26:00 | 0:26:03 | |
one particular box number of his appeared again and again. | 0:26:03 | 0:26:08 | |
Box 1225. | 0:26:08 | 0:26:10 | |
This is postbox 1225. | 0:26:10 | 0:26:13 | |
It's on the white envelope here. | 0:26:13 | 0:26:16 | |
Erm, this is one of the postboxes | 0:26:16 | 0:26:19 | |
that belongs to Erik Dekker's company. | 0:26:19 | 0:26:21 | |
And this is where Elizabeth would have sent some of her | 0:26:21 | 0:26:25 | |
hard-earned pension and her savings. | 0:26:25 | 0:26:29 | |
Mijn naam is Erik Dekker. | 0:26:29 | 0:26:31 | |
We went to Trends to speak to company director Erik Dekker. | 0:26:32 | 0:26:36 | |
He wasn't there. | 0:26:36 | 0:26:38 | |
And he wasn't interested in telling me what he did with our | 0:26:39 | 0:26:42 | |
victim's money as he drove off from his home in a Porsche. | 0:26:42 | 0:26:46 | |
-Could we have a word, please? We want to talk to you about... -We don't want to talk. | 0:26:46 | 0:26:50 | |
We want to talk to you about these letters | 0:26:50 | 0:26:52 | |
that you receive with money in them. | 0:26:52 | 0:26:54 | |
These are letters that have money taken fraudulently | 0:26:54 | 0:26:57 | |
and you use them, distribute them and manage them in your company. | 0:26:57 | 0:27:01 | |
Can you talk to me about them, please? | 0:27:01 | 0:27:03 | |
Can you tell me what you do with the money? | 0:27:03 | 0:27:05 | |
The reason Erik Dekker is free to operate as an apparently | 0:27:13 | 0:27:17 | |
legitimate businessman is because none of those sending money | 0:27:17 | 0:27:21 | |
to his PO boxes lives in Holland. | 0:27:21 | 0:27:23 | |
It was only after the broadcast of our Spotlight programme | 0:27:27 | 0:27:30 | |
a year ago that the Dutch authorities became aware of | 0:27:30 | 0:27:33 | |
Elizabeth and were able to launch an investigation. | 0:27:33 | 0:27:37 | |
I'm now returning to Holland. | 0:27:50 | 0:27:52 | |
I'm catching up with Cees Schep, who helped us last year. | 0:27:54 | 0:27:58 | |
A former Dutch detective who now specialises in exposing fraud, | 0:27:58 | 0:28:03 | |
he says finding a victim is vital to a successful investigation. | 0:28:03 | 0:28:07 | |
-TRANSLATION: -That's the hard part with this kind of crime. | 0:28:09 | 0:28:12 | |
The fraud is committed in other countries | 0:28:12 | 0:28:15 | |
and in the Netherlands you rarely receive reports of the fraud, | 0:28:15 | 0:28:19 | |
because it's very rarely reported. | 0:28:19 | 0:28:21 | |
Victims often don't even know that they are a victim of fraud. | 0:28:22 | 0:28:27 | |
Elizabeth's story was therefore crucial to the raid on | 0:28:30 | 0:28:34 | |
Erik Dekker's company. | 0:28:34 | 0:28:36 | |
MEN SHOUT | 0:28:36 | 0:28:39 | |
Armed fraud investigators arrive in numbers at Trends' offices | 0:28:44 | 0:28:48 | |
in Utrecht and gain access with a search warrant. | 0:28:48 | 0:28:51 | |
The Dutch investigators take staff by surprise. | 0:28:53 | 0:28:57 | |
We see them tell one member of staff to stop work and put his | 0:28:57 | 0:29:00 | |
mobile phone on the desk. | 0:29:00 | 0:29:02 | |
They begin to confiscate anything of value. | 0:29:05 | 0:29:09 | |
This portrait painting of Dutch football legend Johan Cruyff, | 0:29:09 | 0:29:12 | |
for example. | 0:29:12 | 0:29:14 | |
The evidence of scam-mail fraud is everywhere. | 0:29:16 | 0:29:19 | |
Here they find not only the cash the victims put in envelopes | 0:29:21 | 0:29:25 | |
but some messages as well. | 0:29:25 | 0:29:27 | |
One telling them to stop sending "this junk". | 0:29:28 | 0:29:31 | |
Another a note of misplaced gratitude. | 0:29:33 | 0:29:36 | |
The searches at Trends uncover | 0:29:41 | 0:29:43 | |
half a million euros in cash and banknotes in 60 different | 0:29:43 | 0:29:47 | |
currencies, including Bank of England notes | 0:29:47 | 0:29:51 | |
and, as it happens, Bank of Ireland notes as well. | 0:29:51 | 0:29:54 | |
The armed fraud investigators also confiscate | 0:29:58 | 0:30:01 | |
Erik Dekker's latest Porsche. | 0:30:01 | 0:30:03 | |
Newspaper reporter Roeland Franck | 0:30:12 | 0:30:14 | |
tells us the searches at Trends and Erik Dekker's home | 0:30:14 | 0:30:18 | |
stunned the local community. | 0:30:18 | 0:30:21 | |
Many people were surprised, shocked. | 0:30:21 | 0:30:24 | |
Er, well, criminal activities are everywhere, | 0:30:24 | 0:30:28 | |
we don't want to be naive, but seeing that something like | 0:30:28 | 0:30:32 | |
this is happening in our backyard, well, that surprised people. | 0:30:32 | 0:30:37 | |
And in this huge amount of letters which were sent from Utrecht, | 0:30:37 | 0:30:45 | |
this is nothing to be proud of! | 0:30:45 | 0:30:47 | |
His newspaper carries a revealing insight from | 0:30:48 | 0:30:51 | |
a former Trends employee. | 0:30:51 | 0:30:54 | |
He told us really detailed about his experience inside the company. | 0:30:54 | 0:31:00 | |
He saw how envelopes, many thousands of envelopes came in and were | 0:31:00 | 0:31:06 | |
opened by tens of people, just opening envelopes, counting, | 0:31:06 | 0:31:10 | |
sorting the money, counting the money. | 0:31:10 | 0:31:13 | |
Day after day he could see this happening, going on, | 0:31:13 | 0:31:18 | |
and he saw also armoured cars | 0:31:18 | 0:31:20 | |
to pick up the money at the end of the day. | 0:31:20 | 0:31:23 | |
Cees Schep says that as well as making the Dutch authorities | 0:31:29 | 0:31:33 | |
aware of Elizabeth and our Spotlight programme, he also brought it | 0:31:33 | 0:31:36 | |
to the attention of investigators in Britain and America. | 0:31:36 | 0:31:40 | |
-TRANSLATION: -When the Dutch authorities decided to start investigating, | 0:31:42 | 0:31:46 | |
I brought them in contact with the US Postal Service | 0:31:46 | 0:31:49 | |
and National Trading Standard fraud team in the UK. | 0:31:49 | 0:31:53 | |
Those organisations started working together, | 0:31:55 | 0:31:58 | |
which led to the raid on June 1st, | 0:31:58 | 0:32:00 | |
with house searches and the shutting down of over 300 postal boxes. | 0:32:00 | 0:32:05 | |
The searches here in Utrecht were not conducted in isolation. | 0:32:13 | 0:32:18 | |
At exactly the same moment, the US government was taking | 0:32:18 | 0:32:22 | |
a civil action in a Washington court against Trends and Erik Dekker. | 0:32:22 | 0:32:27 | |
America takes mail fraud very seriously, | 0:32:38 | 0:32:41 | |
as is evident from this statement | 0:32:41 | 0:32:44 | |
by the US Attorney General, Loretta Lynch. | 0:32:44 | 0:32:47 | |
Make no mistake, these operations are serious business. | 0:32:47 | 0:32:51 | |
They're massive in scale and global in scope and they bring in | 0:32:51 | 0:32:54 | |
hundreds of millions of dollars. | 0:32:54 | 0:32:57 | |
Several million Americans have been harmed by these predatory schemes. | 0:32:57 | 0:33:01 | |
Erik Dekker is one of those the Americans have had suspicions about. | 0:33:04 | 0:33:08 | |
I believe that the evidence that led us to conclude just how much | 0:33:10 | 0:33:15 | |
Mr Dekker's fraudulent activity was reaching into | 0:33:15 | 0:33:18 | |
the United States really came to our attention only recently, | 0:33:18 | 0:33:23 | |
and once we had the evidence and facts to support | 0:33:23 | 0:33:26 | |
enforcement actions against Mr Dekker we moved swiftly. | 0:33:26 | 0:33:30 | |
Leading investigator Clayton Gerber | 0:33:36 | 0:33:39 | |
says America has long been aware of the huge amount of | 0:33:39 | 0:33:42 | |
fraudulently-obtained money leaving the United States for Holland | 0:33:42 | 0:33:46 | |
on a massive scale. | 0:33:46 | 0:33:49 | |
Were you surprised to discover the volume, not only of the mail | 0:33:49 | 0:33:53 | |
that was going to the Netherlands, but the volume of cash that | 0:33:53 | 0:33:56 | |
was going there as well? | 0:33:56 | 0:33:58 | |
The volume was breathtaking. We were astounded. | 0:33:58 | 0:34:01 | |
We did some initial mail observations | 0:34:01 | 0:34:04 | |
here in the United States | 0:34:04 | 0:34:06 | |
and we identified something in the order of 60% to 70% | 0:34:06 | 0:34:10 | |
of the letter mail from the United States to the Netherlands | 0:34:10 | 0:34:14 | |
each day was these fraudulent remittances from victims. | 0:34:14 | 0:34:19 | |
The numbers were staggering - 150,000 to 180,000 pieces a month. | 0:34:19 | 0:34:25 | |
The lawyer from the US Attorney General's Office who brought | 0:34:27 | 0:34:31 | |
the civil action against Erik Dekker says the fraudulently-obtained money | 0:34:31 | 0:34:35 | |
sent to his company alone runs into several millions. | 0:34:35 | 0:34:40 | |
The evidence that we have suggests that in the United States | 0:34:40 | 0:34:44 | |
the effects of his fraudulent activity was in the magnitude | 0:34:44 | 0:34:47 | |
of 18 million or so. | 0:34:47 | 0:34:49 | |
What we were able to do was to bring civil actions in coordination | 0:34:51 | 0:34:55 | |
with the United States Postal Inspection Service, | 0:34:55 | 0:34:58 | |
have shut down the mail services for Trends and for Mr Dekker. | 0:34:58 | 0:35:03 | |
The question for us is, what happened to Elizabeth's money? | 0:35:12 | 0:35:16 | |
As part of the case against Erik Dekker, | 0:35:18 | 0:35:21 | |
the US Attorney General's Office | 0:35:21 | 0:35:24 | |
set out the key elements of how a mail scam works. | 0:35:24 | 0:35:28 | |
At one end of the chain you have a victim who's conned into | 0:35:29 | 0:35:33 | |
sending money, often to a foreign country. | 0:35:33 | 0:35:35 | |
The money goes to what the Americans call a caging company. | 0:35:37 | 0:35:41 | |
In this case it's Erik Dekker's company Trends. | 0:35:41 | 0:35:45 | |
The caging company's job is to open the envelopes, | 0:35:45 | 0:35:48 | |
count the money, take a cut and then send the cheques to | 0:35:48 | 0:35:52 | |
the next link in the chain, the payment processor. | 0:35:52 | 0:35:55 | |
Sometimes the payment processor is one of the crooks and other times | 0:35:58 | 0:36:02 | |
the processor is being duped by the crooks, | 0:36:02 | 0:36:05 | |
who hide behind it to launder the money. | 0:36:05 | 0:36:08 | |
What we have found is that the fraudulent actors are engaged | 0:36:10 | 0:36:14 | |
in a very complicated international scheme, so there are caging services | 0:36:14 | 0:36:19 | |
like Mr Dekker who are essentially the entities that collect the mail | 0:36:19 | 0:36:24 | |
and open the mail for the other fraudulent actors, | 0:36:24 | 0:36:27 | |
but in addition to that fraudulent conduct | 0:36:27 | 0:36:30 | |
there are also the people who send out the mail | 0:36:30 | 0:36:32 | |
and then people who process the payments. | 0:36:32 | 0:36:35 | |
I'm back in Utrecht in the Netherlands on the money trail, | 0:36:48 | 0:36:52 | |
in pursuit of a man who has been providing scam-mail fraudsters with | 0:36:52 | 0:36:56 | |
facilities to collect and distribute | 0:36:56 | 0:36:59 | |
the cash they've taken from victims like Elizabeth in Northern Ireland | 0:36:59 | 0:37:03 | |
and also from victims all over the world. | 0:37:03 | 0:37:06 | |
The actions of the American and Dutch investigators have had | 0:37:10 | 0:37:15 | |
the effect of putting Erik Dekker and his companies out of business. | 0:37:15 | 0:37:19 | |
His offices in Utrecht are up for sale. | 0:37:19 | 0:37:21 | |
But I still want to know what he's done with Elizabeth's money. | 0:37:23 | 0:37:26 | |
When I catch up with him, he's no longer driving a Porsche. | 0:37:29 | 0:37:34 | |
Mr Dekker? Chris Moore from the BBC. | 0:37:34 | 0:37:38 | |
Mr Dekker, I'd like to ask you about how you've managed and processed | 0:37:39 | 0:37:43 | |
some money that's been sent to you from old ladies in Northern Ireland. | 0:37:43 | 0:37:46 | |
-Can you go away from the car? -Excuse me? | 0:37:46 | 0:37:49 | |
Can you go away from the car? | 0:37:49 | 0:37:50 | |
-Yeah, I want to talk to your... to Mr Dekker here. -No. | 0:37:50 | 0:37:53 | |
Mr Dekker, would you please answer my questions? | 0:37:53 | 0:37:56 | |
What do you do with the money you receive in envelopes | 0:37:56 | 0:37:59 | |
that come to your premises, to your PO boxes? | 0:37:59 | 0:38:03 | |
There's money that's been taken fraudulently | 0:38:03 | 0:38:06 | |
from old ladies in Northern Ireland. | 0:38:06 | 0:38:08 | |
What do you do with the money? | 0:38:08 | 0:38:10 | |
That's it, he doesn't want to talk, obviously. | 0:38:14 | 0:38:17 | |
So, Erik Dekker won't tell us where the money has gone. | 0:38:25 | 0:38:29 | |
But can we find out more about the network? | 0:38:32 | 0:38:34 | |
In particular, who at the end of the scam chain directly benefits | 0:38:34 | 0:38:39 | |
from taking Elizabeth's money. | 0:38:39 | 0:38:41 | |
They're still calling, but... | 0:38:43 | 0:38:45 | |
It's nonstop. I thought maybe, you don't reply to the things, they would give up, but... | 0:38:45 | 0:38:49 | |
So you're surprised there's so much? | 0:38:49 | 0:38:51 | |
I am, yes, I am. There's quite a bit now. | 0:38:51 | 0:38:53 | |
'Elizabeth has travelled to Belfast to meet up with me | 0:38:53 | 0:38:56 | |
'and I'm horrified to learn that she's still receiving scam mail.' | 0:38:56 | 0:39:00 | |
Well, this is where we've been working on your case. | 0:39:03 | 0:39:08 | |
'With Elizabeth's permission, we decide to see if we can | 0:39:09 | 0:39:12 | |
'trace where her cheques have actually been cashed.' | 0:39:12 | 0:39:15 | |
Elizabeth, this is quite a collection of mail... | 0:39:15 | 0:39:19 | |
It is. | 0:39:19 | 0:39:20 | |
-..that keeps coming through your... -Letterbox. -What?! | 0:39:20 | 0:39:24 | |
That's... | 0:39:25 | 0:39:27 | |
That's just unbelievable. | 0:39:28 | 0:39:30 | |
'It's not going to be easy, | 0:39:30 | 0:39:32 | |
'because there are almost 100 cheques involved, | 0:39:32 | 0:39:35 | |
'and even where they've been sent to the same PO box | 0:39:35 | 0:39:39 | |
'they're all made out to different names.' | 0:39:39 | 0:39:42 | |
And they're made out to strange... little companies. | 0:39:43 | 0:39:46 | |
I mean, if you look, | 0:39:46 | 0:39:48 | |
I've just written the names on the front of some of these envelopes, | 0:39:48 | 0:39:51 | |
and what you have is, like, there's OTO... | 0:39:51 | 0:39:56 | |
and RDI. | 0:39:56 | 0:39:57 | |
I don't know where that's to. | 0:39:57 | 0:40:00 | |
RSG, does that mean anything? | 0:40:00 | 0:40:02 | |
Eh...yes, some of them do. | 0:40:02 | 0:40:05 | |
We take some of the cheques she sent to Erik Dekker, | 0:40:12 | 0:40:16 | |
all made out to different names, | 0:40:16 | 0:40:18 | |
and look at the sort code stamped on the back. | 0:40:18 | 0:40:20 | |
And amazingly, when we put that number into a search engine, | 0:40:25 | 0:40:28 | |
we discover that Elizabeth's cheques have gone from | 0:40:28 | 0:40:31 | |
Northern Ireland to Holland and have ended up back in the UK, | 0:40:31 | 0:40:35 | |
being cashed in a high-street bank in England - | 0:40:35 | 0:40:39 | |
the NatWest bank at Chorley in Lancashire. | 0:40:39 | 0:40:42 | |
Further research reveals that alongside the cheques | 0:40:44 | 0:40:47 | |
sent via Erik Dekker, | 0:40:47 | 0:40:49 | |
a total of 38 of Elizabeth's cheques have ended up in this bank. | 0:40:49 | 0:40:54 | |
All of Elizabeth's cheques were what's known as crossed cheques, | 0:40:55 | 0:40:59 | |
which means they should only be cached into the account | 0:40:59 | 0:41:02 | |
of the person they're made out to. | 0:41:02 | 0:41:04 | |
But incredibly, despite being made out and crossed to | 0:41:05 | 0:41:08 | |
over 30 different names, they all went into the same account. | 0:41:08 | 0:41:12 | |
Financial journalist Paul Lewis of the BBC's Money Box programme | 0:41:17 | 0:41:21 | |
says that just shouldn't happen. | 0:41:21 | 0:41:24 | |
That's not how it's supposed to work. | 0:41:25 | 0:41:27 | |
Particularly if a cheque is crossed, | 0:41:27 | 0:41:29 | |
it should only go to the named payee on the account. | 0:41:29 | 0:41:33 | |
That is how it should work. | 0:41:33 | 0:41:35 | |
If this is a UK bank, which it is, | 0:41:35 | 0:41:37 | |
that's how it should work in this country, certainly. | 0:41:37 | 0:41:40 | |
So you would be concerned if that's happening? | 0:41:40 | 0:41:43 | |
I'd be very concerned. | 0:41:43 | 0:41:44 | |
I've come to Chorley in Lancashire because nearly half of | 0:41:53 | 0:41:56 | |
Elizabeth's cheques were cashed in a bank here. | 0:41:56 | 0:41:59 | |
It says a lot about how carefully scammers plot their schemes | 0:42:01 | 0:42:05 | |
when they come to small towns like Chorley here in Lancashire | 0:42:05 | 0:42:08 | |
and open up bank accounts to clean up the money they've taken | 0:42:08 | 0:42:12 | |
fraudulently in mail scams. | 0:42:12 | 0:42:14 | |
Muthupandi Ganesan is a barrister specialising in fraud cases, | 0:42:18 | 0:42:23 | |
particularly mail scams and money laundering. | 0:42:23 | 0:42:26 | |
In many cases fraudsters do target regional branches of big companies, | 0:42:28 | 0:42:33 | |
and the reason being is that they do not want to get noticed, | 0:42:33 | 0:42:37 | |
they don't want to bring attention to themselves | 0:42:37 | 0:42:40 | |
as much as they would do if they are in a very big city branch | 0:42:40 | 0:42:44 | |
with lots of transactions, | 0:42:44 | 0:42:45 | |
with a high number of staff looking at the account-opening procedures. | 0:42:45 | 0:42:52 | |
But even when dealing with a small branch, how can fraudsters | 0:42:55 | 0:42:59 | |
cash cheques made out to different people in the same account? | 0:42:59 | 0:43:02 | |
The answer very often is a payment processor, who tells the bank | 0:43:03 | 0:43:08 | |
it's holding accounts for a number of mail order clients. | 0:43:08 | 0:43:12 | |
There have been cases where payment processors, | 0:43:12 | 0:43:15 | |
third-party payment processors, | 0:43:15 | 0:43:17 | |
their facilities have been abused by fraudsters because it enables them | 0:43:17 | 0:43:22 | |
to receive cheques from different names | 0:43:22 | 0:43:25 | |
and cheques coming from different locations | 0:43:25 | 0:43:28 | |
but all being put through to one particular account. | 0:43:28 | 0:43:32 | |
We asked the NatWest to tell us the name of the payment processor | 0:43:36 | 0:43:39 | |
into whose account they'd paid all of Elizabeth's money. | 0:43:39 | 0:43:43 | |
The bank declined to tell us on the grounds of data protection. | 0:43:43 | 0:43:47 | |
Without the name of the payment processor, | 0:43:49 | 0:43:52 | |
we can't for the time being take the money trail past the NatWest. | 0:43:52 | 0:43:57 | |
But those are not the only cheques of Elizabeth's | 0:44:05 | 0:44:08 | |
we are able to follow. | 0:44:08 | 0:44:10 | |
We traced 24 to a branch of Barclays Bank in London. | 0:44:12 | 0:44:16 | |
But these cheques contain an even more important clue, because stamped | 0:44:18 | 0:44:23 | |
on the back is the name of a payment processor, Cambridge Mercantile. | 0:44:23 | 0:44:29 | |
We have here a number of the cheques that you sent - | 0:44:31 | 0:44:34 | |
-I think there was 24 of them went into a Barclays Bank. -Yes. | 0:44:34 | 0:44:37 | |
When you look at the back of the cheques | 0:44:37 | 0:44:40 | |
there's a clue about who received the money, | 0:44:40 | 0:44:43 | |
-because on these it tells you, if you look through there... -Yes. | 0:44:43 | 0:44:48 | |
Take the magnifying glass and have a look. You see here it tells you... | 0:44:48 | 0:44:52 | |
-Can you see my finger? -Yes, I do. | 0:44:52 | 0:44:54 | |
-It's got the name Cambridge Mercantile. -I see that. | 0:44:54 | 0:44:58 | |
You didn't make a cheque out to Cambridge Mercantile? | 0:45:00 | 0:45:02 | |
No, no. Definitely not. | 0:45:02 | 0:45:03 | |
Now, it's important to remember that the vast majority of payment | 0:45:05 | 0:45:08 | |
processors are legitimate businesses that are themselves being | 0:45:08 | 0:45:13 | |
duped by criminals. | 0:45:13 | 0:45:14 | |
And that is what Cambridge Mercantile tell us | 0:45:16 | 0:45:18 | |
has happened on this occasion. | 0:45:18 | 0:45:21 | |
In a statement, the company says that while the account in question | 0:45:21 | 0:45:24 | |
had been set up properly, red-flag issues soon emerged, and that | 0:45:24 | 0:45:29 | |
they closed the account and launched some form of investigation. | 0:45:29 | 0:45:33 | |
But once again, very frustratingly, on the grounds of data protection | 0:45:33 | 0:45:38 | |
neither Cambridge Mercantile, the payment processor, | 0:45:38 | 0:45:41 | |
nor Barclays would tell us who the money was going to. | 0:45:41 | 0:45:45 | |
But Elizabeth's cheques are not the only ones we follow. | 0:45:50 | 0:45:53 | |
-And here we have GDS. -Yes, I do remember them. | 0:45:55 | 0:45:57 | |
Familiar with those? | 0:45:57 | 0:45:59 | |
Yes, you made the cheque payable to GDS. | 0:45:59 | 0:46:01 | |
'We ask Elizabeth if we can send six of our own bank drafts to | 0:46:02 | 0:46:06 | |
'addresses the fraudsters previously tricked her into sending money to, | 0:46:06 | 0:46:11 | |
'including this one offering £66,000 | 0:46:11 | 0:46:14 | |
'in exchange for £30 sent in advance.' | 0:46:14 | 0:46:18 | |
-One of the people we want to send our money off to is GDS. -Yes. | 0:46:19 | 0:46:23 | |
-And this is the letter that we're going to use. -Yes. | 0:46:23 | 0:46:27 | |
-You see what it's promising? -Yes, 66,500. | 0:46:27 | 0:46:30 | |
And that means we should get 66,000 back. | 0:46:30 | 0:46:33 | |
-If you get it. -Will we? | 0:46:33 | 0:46:35 | |
I don't think so. Don't get up your hopes, son. | 0:46:35 | 0:46:38 | |
OK. | 0:46:38 | 0:46:39 | |
I just purchased these six bank drafts | 0:46:46 | 0:46:49 | |
made payable to companies we've already identified | 0:46:49 | 0:46:52 | |
as having scammed Elizabeth two years ago. | 0:46:52 | 0:46:55 | |
Now we're going to send this money off to those same companies, | 0:46:55 | 0:46:58 | |
and we're using mail that they've delivered to her home | 0:46:58 | 0:47:02 | |
since the start of the year. | 0:47:02 | 0:47:03 | |
That's six envelopes on their way to Holland with our money in them. | 0:47:11 | 0:47:14 | |
It'll be interesting to see where it ends up. | 0:47:14 | 0:47:17 | |
One of the bank drafts we sent off was made out to GDS. | 0:47:27 | 0:47:31 | |
12 cheques belonging to Elizabeth also made out to GDS | 0:47:35 | 0:47:39 | |
ended up, according to our searches, | 0:47:39 | 0:47:41 | |
being paid to another payment processor | 0:47:41 | 0:47:44 | |
called Payment Solutions. | 0:47:44 | 0:47:45 | |
We contacted Payment Solutions to ask them where the money was going. | 0:47:50 | 0:47:55 | |
And remarkably, this time, | 0:47:55 | 0:47:57 | |
there's no attempt made to hide behind data protection, | 0:47:57 | 0:48:02 | |
because they say they believe their client, GDS, | 0:48:02 | 0:48:05 | |
is a legitimate mail order company. | 0:48:05 | 0:48:08 | |
They say their client runs a mail order business | 0:48:13 | 0:48:16 | |
selling costume jewellery and religious medals. | 0:48:16 | 0:48:19 | |
Payment Solutions tell us there's no evidence so far | 0:48:23 | 0:48:26 | |
of the cheques being fraudulent. | 0:48:26 | 0:48:28 | |
But we have that evidence. | 0:48:33 | 0:48:35 | |
We know that GDS were not selling any actual items | 0:48:35 | 0:48:39 | |
when they cashed our cheque. | 0:48:39 | 0:48:41 | |
Here's what prompted us to send it to them - | 0:48:41 | 0:48:44 | |
a letter promising £66,000. | 0:48:44 | 0:48:48 | |
So, where's the money I was promised? | 0:48:50 | 0:48:52 | |
£66,000 for a small advance payment? | 0:48:52 | 0:48:56 | |
We need to find out more. | 0:49:02 | 0:49:04 | |
And, remarkably, Payment Solutions e-mail us | 0:49:11 | 0:49:14 | |
with an address in Switzerland for GDS, | 0:49:14 | 0:49:17 | |
which they call Grino Direct Sarl. | 0:49:17 | 0:49:19 | |
Our destination is Geneva, | 0:49:22 | 0:49:24 | |
the fourth most expensive city in the world. | 0:49:24 | 0:49:27 | |
It's a place for those with lavish tastes, | 0:49:31 | 0:49:35 | |
but also the hiding place for the GDS scammers | 0:49:35 | 0:49:38 | |
who've taken Elizabeth's money, and our money as well. | 0:49:38 | 0:49:41 | |
This is a very interesting e-mail from Payment Solutions | 0:49:43 | 0:49:46 | |
because they finally tell us who was taking the money | 0:49:46 | 0:49:50 | |
from Elizabeth's cheques that were made out to GDS, | 0:49:50 | 0:49:52 | |
and it turns out that it's Grino Direct Sarl. | 0:49:52 | 0:49:57 | |
But they give us the address. | 0:49:57 | 0:49:59 | |
It's care of Ace International | 0:49:59 | 0:50:01 | |
at Place de St-Gervais, Geneva, in Switzerland. | 0:50:01 | 0:50:04 | |
But as ever, when investigating mail fraud, | 0:50:07 | 0:50:10 | |
you can never be sure you've got to the end of the chain. | 0:50:10 | 0:50:13 | |
Company records show the owner of GDS | 0:50:14 | 0:50:17 | |
is a Mr Herbert Rudolf Spaar. | 0:50:17 | 0:50:21 | |
I'm looking for Mr Spaar. Would he be available, please? | 0:50:21 | 0:50:25 | |
We leave several voice messages and write to him twice, | 0:50:25 | 0:50:29 | |
but get no response. | 0:50:29 | 0:50:30 | |
Do you know if he'll be in this week to his office? | 0:50:32 | 0:50:35 | |
We're not the only people | 0:50:41 | 0:50:43 | |
who've had difficulty in contacting Herbert Spaar. | 0:50:43 | 0:50:46 | |
Swiss journalist Dr Oliver Zihlmann, | 0:50:46 | 0:50:49 | |
of the International Consortium of Investigative Journalists, | 0:50:49 | 0:50:52 | |
helped to reveal the Panama Papers | 0:50:52 | 0:50:55 | |
where companies were engaged in elaborate tax avoidance schemes. | 0:50:55 | 0:50:58 | |
He made enquiries about Herbert Spaar on our behalf. | 0:51:00 | 0:51:03 | |
One would expect in Switzerland when you contact a business | 0:51:04 | 0:51:07 | |
that you would be able to get someone. | 0:51:07 | 0:51:09 | |
This is not the case here, | 0:51:09 | 0:51:11 | |
so that makes this person a bit of a ghost. | 0:51:11 | 0:51:14 | |
Also, we didn't find him in any other database | 0:51:15 | 0:51:20 | |
or phone book or registry, | 0:51:20 | 0:51:22 | |
so he is a person who really escapes the eye. | 0:51:22 | 0:51:28 | |
So the question is, | 0:51:29 | 0:51:32 | |
does Mr Spaar really exist or is he a faceless ghost? | 0:51:32 | 0:51:36 | |
Amazing. | 0:51:39 | 0:51:40 | |
The faceless man of Geneva. | 0:51:42 | 0:51:44 | |
So, I'm now on my way to knock the door of the company GDS, | 0:51:49 | 0:51:54 | |
and I've got their address here | 0:51:54 | 0:51:56 | |
and I'm hoping that Mr Spaar will be available. | 0:51:56 | 0:51:58 | |
He hasn't been available on the telephone up to now, | 0:51:58 | 0:52:01 | |
but let's see what happens when we actually knock the front door. | 0:52:01 | 0:52:04 | |
So, there's no GDS button, | 0:52:11 | 0:52:13 | |
but their office is care of Ace International, so... | 0:52:13 | 0:52:16 | |
..I'll press this button and see what happens. | 0:52:17 | 0:52:20 | |
They're opening the door for me, | 0:52:24 | 0:52:26 | |
so I'll take the opportunity to go in | 0:52:26 | 0:52:30 | |
and speak to whoever's there. | 0:52:30 | 0:52:31 | |
See you in a moment. | 0:52:35 | 0:52:37 | |
Hello. Bonjour. | 0:52:38 | 0:52:40 | |
'On my way up to the office, | 0:52:40 | 0:52:41 | |
'I notice a letterbox with the initials GDS.' | 0:52:41 | 0:52:45 | |
So, here we have Ace International. | 0:52:45 | 0:52:48 | |
They provide accommodation for this company down here, | 0:52:48 | 0:52:52 | |
Grino Direct Sarl. | 0:52:52 | 0:52:54 | |
This is the company that has taken money from Elizabeth's cheques. | 0:52:54 | 0:52:59 | |
That's the company we want to talk to today. | 0:52:59 | 0:53:02 | |
My name's Chris Moore. I'm from the BBC in Northern Ireland. | 0:53:05 | 0:53:09 | |
I spoke to someone here yesterday. I'm looking for Mr Spaar. | 0:53:09 | 0:53:12 | |
Along with my producer, we're shown into a conference room. | 0:53:13 | 0:53:18 | |
The door's closed behind us. | 0:53:18 | 0:53:20 | |
The receptionist won't confirm | 0:53:20 | 0:53:22 | |
whether she has ever met GDS owner Herbert Spaar. | 0:53:22 | 0:53:26 | |
She tells us she is not allowed to say whether or not | 0:53:26 | 0:53:29 | |
we're sitting in the offices of GDS. | 0:53:29 | 0:53:31 | |
HE CHUCKLES It's... It's... | 0:53:32 | 0:53:34 | |
It's hardly surprising we're getting the runaround here. | 0:53:35 | 0:53:39 | |
No-one seems to, obviously, want to talk to us. | 0:53:39 | 0:53:43 | |
No-one wants to be able to explain why... | 0:53:43 | 0:53:46 | |
they send this kind of literature out | 0:53:46 | 0:53:49 | |
and scam letters promising large amounts of cash - | 0:53:49 | 0:53:53 | |
134,000 here, 32,000 here - | 0:53:53 | 0:53:57 | |
for small payments made payable to GDS. | 0:53:57 | 0:54:01 | |
Elizabeth lost thousands | 0:54:03 | 0:54:05 | |
in sending money to Holland to these addresses, | 0:54:05 | 0:54:09 | |
because these all come from PO boxes in Holland, | 0:54:09 | 0:54:14 | |
and the money then comes to England. | 0:54:14 | 0:54:17 | |
And then we find out that it's transferred to GDS at this address, | 0:54:17 | 0:54:22 | |
this very office, in Geneva. | 0:54:22 | 0:54:25 | |
And it's quite a posh office. | 0:54:25 | 0:54:28 | |
No-one in here is prepared to talk to us | 0:54:28 | 0:54:31 | |
and to explain what kind of a business it is that they're running | 0:54:31 | 0:54:34 | |
and what have they done with Elizabeth's money. | 0:54:34 | 0:54:39 | |
It's just... It's just unbelievable. Unbelievable. | 0:54:39 | 0:54:42 | |
After half an hour waiting with no-one prepared to speak to us, | 0:54:45 | 0:54:49 | |
it's time to leave. | 0:54:49 | 0:54:50 | |
We never found out whether Mr Spaar was real or whether he was a ghost. | 0:54:53 | 0:54:57 | |
After our visit, Ace International wrote to us | 0:55:00 | 0:55:04 | |
insisting that it and GDS are two separate legal entities. | 0:55:04 | 0:55:08 | |
But we had already established | 0:55:10 | 0:55:12 | |
that the two companies have a lot in common. | 0:55:12 | 0:55:15 | |
A quick look at their accounts shows a most remarkable coincidence. | 0:55:17 | 0:55:21 | |
Based in the same building, | 0:55:23 | 0:55:24 | |
they both have exactly the same annual turnover. | 0:55:24 | 0:55:27 | |
Oliver Zihlmann is deeply suspicious. | 0:55:30 | 0:55:33 | |
One would be surprised. | 0:55:34 | 0:55:36 | |
When you look a bit closely at this company, | 0:55:36 | 0:55:39 | |
you see that it is using an address of another company | 0:55:39 | 0:55:43 | |
who incorporates offshore companies, | 0:55:43 | 0:55:46 | |
shell companies, in jurisdictions like the British Virgin Islands, | 0:55:46 | 0:55:51 | |
and this is a very shadowy business, let's say it like that. | 0:55:51 | 0:55:55 | |
The chief executive officer of Ace International | 0:56:00 | 0:56:03 | |
is Ariane Slinger. | 0:56:03 | 0:56:06 | |
Ace is a company that provides business and tax advice. | 0:56:06 | 0:56:09 | |
Ariane Slinger has been linked to over 1,800 entities | 0:56:11 | 0:56:15 | |
listed in the Panama Papers, | 0:56:15 | 0:56:18 | |
her company appearing to help them keep one step ahead of the law. | 0:56:18 | 0:56:22 | |
What we have in Geneva | 0:56:24 | 0:56:25 | |
is companies like the one that uses the address of your company | 0:56:25 | 0:56:30 | |
setting up shell companies | 0:56:30 | 0:56:32 | |
in places like Panama and British Virgin Islands | 0:56:32 | 0:56:35 | |
and using scam directors. | 0:56:35 | 0:56:38 | |
If they make that, then law enforcements cannot touch them. | 0:56:38 | 0:56:42 | |
We never discovered to what extent the ghostly Mr Spaar of GDS | 0:56:46 | 0:56:50 | |
is connected to Ariane Slinger of Ace. | 0:56:50 | 0:56:53 | |
As we know, she insists Ace and GDS | 0:56:54 | 0:56:57 | |
are entirely separate legal entities. | 0:56:57 | 0:57:00 | |
This is pretty serious stuff, | 0:57:03 | 0:57:05 | |
and normally you see those companies set up in Liberia and other places. | 0:57:05 | 0:57:09 | |
That it's operating out of Switzerland is really embarrassing. | 0:57:09 | 0:57:12 | |
And do you think that the Swiss authorities | 0:57:12 | 0:57:14 | |
might at some point have an interest in this, | 0:57:14 | 0:57:17 | |
that they might want to look at this? | 0:57:17 | 0:57:19 | |
Yes, definitely. | 0:57:19 | 0:57:20 | |
I would say if you have an operation like that | 0:57:20 | 0:57:24 | |
with a company actually incorporated in Switzerland | 0:57:24 | 0:57:27 | |
they would have to go after it, yes, absolutely. | 0:57:27 | 0:57:30 | |
What Switzerland underlined, as we found elsewhere, | 0:57:36 | 0:57:39 | |
is that again and again, | 0:57:39 | 0:57:40 | |
it is really difficult to follow the money trail in mail fraud. | 0:57:40 | 0:57:44 | |
But in September, | 0:57:51 | 0:57:53 | |
the American action against Erik Dekker's company, Trends, in Holland | 0:57:53 | 0:57:58 | |
led them to name a payment processor called PacNet | 0:57:58 | 0:58:01 | |
as a transnational criminal organisation... | 0:58:01 | 0:58:04 | |
..to which Erik Dekker was sending fraudulently-obtained money. | 0:58:06 | 0:58:10 | |
One of the principal payment processors | 0:58:11 | 0:58:14 | |
that Mr Dekker and Trends worked with was an entity called PacNet. | 0:58:14 | 0:58:18 | |
PacNet is what we call a payment processor, | 0:58:18 | 0:58:21 | |
which means that it receives the money | 0:58:21 | 0:58:24 | |
and then makes sure that the money | 0:58:24 | 0:58:26 | |
gets to the people who are engaged in the fraudulent scheme. | 0:58:26 | 0:58:29 | |
To put it another way, | 0:58:29 | 0:58:31 | |
when Mr Dekker and his corporation open the mail, | 0:58:31 | 0:58:35 | |
they send the cheques to PacNet. | 0:58:35 | 0:58:37 | |
The fraudsters needed someone to open the envelopes | 0:58:41 | 0:58:44 | |
and handle the paper and do the data entry. | 0:58:44 | 0:58:46 | |
That's what Mr Dekker's company did. | 0:58:46 | 0:58:48 | |
And they needed someone like PacNet to process the payments | 0:58:48 | 0:58:52 | |
and deal with the cheques and credit cards and the like. | 0:58:52 | 0:58:55 | |
US investigators say PacNet have a 20-year history | 0:58:58 | 0:59:03 | |
of knowingly laundering the proceeds of mail frauds. | 0:59:03 | 0:59:06 | |
Last year, Clayton Gerber supervised the closure | 0:59:09 | 0:59:12 | |
of one scheme involving PacNet | 0:59:12 | 0:59:14 | |
which took 184 million from victims in a five-year period. | 0:59:14 | 0:59:19 | |
Here, he supervises the interception of envelopes containing cash. | 0:59:22 | 0:59:26 | |
Andrew Saks-McLeod specialises in research on financial technology. | 0:59:33 | 0:59:38 | |
PacNet's been around for quite some time, | 0:59:39 | 0:59:41 | |
and it has a series of other sister companies | 0:59:41 | 0:59:44 | |
and members of its same group underneath it. | 0:59:44 | 0:59:47 | |
It's a Canadian company. | 0:59:47 | 0:59:49 | |
It originates from Vancouver, British Columbia. | 0:59:49 | 0:59:51 | |
In the case of the Netherlands, | 0:59:57 | 0:59:59 | |
the US authorities established that tens of millions of dollars | 0:59:59 | 1:00:03 | |
fraudulently obtained in America | 1:00:03 | 1:00:06 | |
were being sent to Erik Dekker's Trends company | 1:00:06 | 1:00:09 | |
and then on to PacNet. | 1:00:09 | 1:00:11 | |
That's why they stopped first Trends and then PacNet | 1:00:14 | 1:00:18 | |
from using the US Postal Service. | 1:00:18 | 1:00:20 | |
What's happened is, the US government | 1:00:23 | 1:00:25 | |
hasn't been able to have any jurisdiction | 1:00:25 | 1:00:27 | |
over those particular companies | 1:00:27 | 1:00:29 | |
because they're not American companies, | 1:00:29 | 1:00:30 | |
so they cut off the payment source, | 1:00:30 | 1:00:32 | |
therefore there's no possibility | 1:00:32 | 1:00:35 | |
that those companies can solicit using PacNet. | 1:00:35 | 1:00:38 | |
The Americans traced US dollars going to Trends | 1:00:38 | 1:00:41 | |
and then on to a PacNet account at a Barclays Bank in London, | 1:00:41 | 1:00:46 | |
and from there through an American bank | 1:00:46 | 1:00:49 | |
to PacNet's headquarters in Canada. | 1:00:49 | 1:00:52 | |
But did any of Elizabeth's money pass through the hands of PacNet? | 1:00:58 | 1:01:02 | |
The answer to that can be found | 1:01:05 | 1:01:07 | |
back at this branch of the NatWest Bank in Chorley. | 1:01:07 | 1:01:11 | |
As we already know, we traced 38 of Elizabeth's cheques, | 1:01:11 | 1:01:16 | |
several of which had gone through Erik Dekker's PO boxes in Holland, | 1:01:16 | 1:01:20 | |
to a single account in this branch. | 1:01:20 | 1:01:23 | |
Now Spotlight can reveal that a source in the banking industry | 1:01:23 | 1:01:27 | |
has shown us evidence that proves the account belonged to PacNet. | 1:01:27 | 1:01:32 | |
According to the US Treasury Department, | 1:01:36 | 1:01:39 | |
these are some of the people behind the PacNet group. | 1:01:39 | 1:01:42 | |
The man at the top is Robert Paul Davis, | 1:01:44 | 1:01:47 | |
commonly known as Paul Davis. | 1:01:47 | 1:01:49 | |
When not helping to run what the American government calls | 1:01:55 | 1:01:58 | |
a transnational criminal organisation, | 1:01:58 | 1:02:01 | |
Mr Davis is a farmer | 1:02:01 | 1:02:03 | |
and a director of a RareBridge company based on the Isle of Man. | 1:02:03 | 1:02:07 | |
Here he's being interviewed for a BBC programme on his farm. | 1:02:09 | 1:02:13 | |
I've heard anecdotally | 1:02:13 | 1:02:15 | |
that some of the locals refer to us as Jurassic Park. | 1:02:15 | 1:02:19 | |
Although none of our animals have actually been extinct, | 1:02:19 | 1:02:22 | |
we are doing pretty much the same thing. | 1:02:22 | 1:02:24 | |
We're preserving the heritage of animals. | 1:02:24 | 1:02:26 | |
As well as being a farmer, Mr Davis has many other talents. | 1:02:29 | 1:02:33 | |
He's a pilot - | 1:02:33 | 1:02:35 | |
here he is in the uniform of PacNet Air - | 1:02:35 | 1:02:37 | |
a barrister, | 1:02:37 | 1:02:39 | |
and an expert on international financial payments. | 1:02:39 | 1:02:43 | |
He frequently attends conferences | 1:02:43 | 1:02:45 | |
and, ironically, gives talks on protection against fraud. | 1:02:45 | 1:02:48 | |
He told the 8th European Gaming Summit | 1:02:51 | 1:02:54 | |
that his life is governed is by the four Fs - | 1:02:54 | 1:02:56 | |
family, finance, flying and farming. | 1:02:56 | 1:03:02 | |
He didn't mention whether PacNet helps fraudsters. | 1:03:02 | 1:03:05 | |
We wrote to Paul Davis about the alleged involvement of his companies | 1:03:10 | 1:03:14 | |
in laundering fraudulent cheques. | 1:03:14 | 1:03:17 | |
We mentioned PacNet Services Ltd | 1:03:17 | 1:03:19 | |
and other companies with similar names. | 1:03:19 | 1:03:22 | |
Paul Davis wrote back | 1:03:25 | 1:03:27 | |
categorically denying any involvement in fraud. | 1:03:27 | 1:03:31 | |
He claims PacNet operates strict compliance procedures | 1:03:31 | 1:03:35 | |
and it denies it ever knowingly processed payments | 1:03:35 | 1:03:38 | |
for fraudulent mail companies. | 1:03:38 | 1:03:41 | |
PacNet also told us they will defend the US government allegations, | 1:03:41 | 1:03:45 | |
which they claim are inaccurate and biased. | 1:03:45 | 1:03:48 | |
They also told us they'd stopped processing payments | 1:03:48 | 1:03:52 | |
for direct mail companies altogether. | 1:03:52 | 1:03:55 | |
In closing PacNet down in America, the US authorities recognised | 1:03:55 | 1:04:00 | |
that the group operates behind a hugely complex web | 1:04:00 | 1:04:03 | |
of similarly-named companies and individuals. | 1:04:03 | 1:04:07 | |
Paul Davis relied on this | 1:04:08 | 1:04:09 | |
when failing to address some of our questions. | 1:04:09 | 1:04:12 | |
Today, we took action to protect America's most vulnerable | 1:04:18 | 1:04:22 | |
by designating the PacNet Group | 1:04:22 | 1:04:24 | |
as a significant transnational criminal organisation. | 1:04:24 | 1:04:28 | |
With operations in Canada, Ireland and the United Kingdom | 1:04:28 | 1:04:32 | |
and subsidiaries or affiliates in 15 other jurisdictions, | 1:04:32 | 1:04:36 | |
PacNet is a third-party payment processor of choice | 1:04:36 | 1:04:40 | |
for perpetrators of a wide range of mail-fraud schemes. | 1:04:40 | 1:04:45 | |
The 24 companies designated by Ofac today | 1:04:45 | 1:04:47 | |
comprise of PacNet Group | 1:04:47 | 1:04:49 | |
and/or are entities owned or controlled by PacNet executives | 1:04:49 | 1:04:53 | |
or other PacNet-linked companies. | 1:04:53 | 1:04:55 | |
In our letter to Mr Davis, | 1:05:00 | 1:05:02 | |
we told him about 74-year-old Elizabeth | 1:05:02 | 1:05:05 | |
and the money she'd lost. | 1:05:05 | 1:05:07 | |
In his reply, he said PacNet was sorry to hear about people | 1:05:07 | 1:05:12 | |
who have lost the capacity to look after their money. | 1:05:12 | 1:05:16 | |
-You sent a lot of money to these mail scams. -Yes, I did. I did. | 1:05:19 | 1:05:23 | |
-And you lost your life savings. -Yes, I did. Uh-huh. | 1:05:23 | 1:05:27 | |
How difficult has it been | 1:05:27 | 1:05:30 | |
to survive without that money that you had safely stashed away? | 1:05:30 | 1:05:33 | |
Well, it was difficult | 1:05:33 | 1:05:35 | |
to know that I'd made of a fool of myself, for starters, | 1:05:35 | 1:05:38 | |
and was difficult... | 1:05:38 | 1:05:40 | |
I had plans for that money, | 1:05:40 | 1:05:43 | |
but I thought if I had a little bit more, I'd be able to... | 1:05:43 | 1:05:47 | |
..succeed in my dream of what I was going to do with it. | 1:05:48 | 1:05:52 | |
But it wasn't to be, | 1:05:52 | 1:05:55 | |
because I had no money to do what I wanted to do. | 1:05:55 | 1:05:59 | |
What was your dream? What did you need the extra cash for? | 1:05:59 | 1:06:02 | |
I wanted a nice house, | 1:06:02 | 1:06:05 | |
a better house than the one I lived in. | 1:06:05 | 1:06:08 | |
And a nice dry house and... | 1:06:08 | 1:06:11 | |
You know, nice and comfortable for the rest of my days. | 1:06:11 | 1:06:13 | |
But it didn't work out like that. | 1:06:13 | 1:06:15 | |
We also asked Mr Davis about PacNet's dealings | 1:06:19 | 1:06:22 | |
with Erik Dekker and Trends. | 1:06:22 | 1:06:24 | |
He told us PacNet and Trends have no business relationship. | 1:06:25 | 1:06:29 | |
But Elizabeth's cheques showed that there is some connection. | 1:06:31 | 1:06:35 | |
By allowing us to track her cheques from Northern Ireland | 1:06:37 | 1:06:40 | |
through the caging services of Erik Dekker in Holland | 1:06:40 | 1:06:44 | |
and then on to the PacNet account at the NatWest Bank, | 1:06:44 | 1:06:48 | |
Elizabeth has enabled us to prove | 1:06:48 | 1:06:51 | |
that Mr Davis' PacNet is the next link in the chain. | 1:06:51 | 1:06:55 | |
Surprisingly, that link isn't too far from our own shores. | 1:07:14 | 1:07:18 | |
We've come to the Isle of Man on the trail of PacNet's Paul Davis, | 1:07:22 | 1:07:26 | |
the man the US government has placed | 1:07:26 | 1:07:28 | |
on the transnational criminal organisation list. | 1:07:28 | 1:07:31 | |
We want to ask him how some of the cheques Elizabeth sent | 1:07:31 | 1:07:35 | |
to Erik Dekker's PO boxes in Holland | 1:07:35 | 1:07:38 | |
ended up in a PacNet account in Chorley. | 1:07:38 | 1:07:40 | |
We start by visiting Mr Davis' Manx Rare Breeds farm. | 1:07:50 | 1:07:54 | |
But there's no-one at home. | 1:07:56 | 1:07:59 | |
We want to put our questions to Mr Davis on PacNet's behalf. | 1:07:59 | 1:08:03 | |
Mr Davis, could I have a word? | 1:08:05 | 1:08:06 | |
'We catch up with him...' How are you doing? | 1:08:06 | 1:08:08 | |
'..as he is delivering meat to a local restaurant.' | 1:08:08 | 1:08:11 | |
-Who are you? -Chris Moore from the BBC in Northern Ireland. -Yeah? | 1:08:11 | 1:08:14 | |
Just wanted to have a word with you | 1:08:14 | 1:08:16 | |
about the cheques that went into the PacNet account | 1:08:16 | 1:08:19 | |
-in Chorley in Lancashire. -No comment. | 1:08:19 | 1:08:21 | |
-You know, a 74-year-old lady lost... -No comment. -..thousands of pounds. | 1:08:21 | 1:08:24 | |
-Can you tell me what you did with her money? -No comment. | 1:08:24 | 1:08:26 | |
Can you give me some reaction, then, | 1:08:26 | 1:08:28 | |
to what the Americans have alleged against PacNet, | 1:08:28 | 1:08:30 | |
-that you're a transnational criminal organisation? -No comment. | 1:08:30 | 1:08:33 | |
Do you not think that the elderly people in Northern Ireland | 1:08:33 | 1:08:36 | |
who've lost money are deserving of an explanation? | 1:08:36 | 1:08:38 | |
No comment. | 1:08:38 | 1:08:40 | |
-I mean, you did say in response to our letters... -No comment. | 1:08:40 | 1:08:45 | |
Um... | 1:08:45 | 1:08:47 | |
-You have said... -No comment. -..that PacNet will defend the allegations | 1:08:47 | 1:08:51 | |
against the government in the United States. | 1:08:51 | 1:08:53 | |
-How will you do that, please? -No comment. -Could you tell me? | 1:08:53 | 1:08:56 | |
We've given you this opportunity to talk to us | 1:08:56 | 1:08:58 | |
and we'd like to know what happened to the money | 1:08:58 | 1:09:00 | |
that a 74-year-old widow was scammed out of. | 1:09:00 | 1:09:04 | |
-No comment. -Why can't you tell us...? | 1:09:04 | 1:09:06 | |
'We want Mr Davis to explain PacNet's position.' | 1:09:06 | 1:09:10 | |
And we would like to know what you did with that money. | 1:09:10 | 1:09:12 | |
-Who did you give it to? Cos this lady was defrauded. -No comment. | 1:09:12 | 1:09:15 | |
OK. Thank you very much for your time. Thanks. | 1:09:15 | 1:09:18 | |
PacNet did subsequently point out | 1:09:18 | 1:09:20 | |
they've never been charged with any criminal wrongdoing | 1:09:20 | 1:09:23 | |
and claim regularly to report suspicious transactions | 1:09:23 | 1:09:27 | |
and to cooperate with the authorities. | 1:09:27 | 1:09:29 | |
It's time to find out what Elizabeth thinks. | 1:09:30 | 1:09:33 | |
We've tried to take the story of your money | 1:09:33 | 1:09:36 | |
-and where it disappeared to. -Yes. | 1:09:36 | 1:09:38 | |
-We started with you, obviously, here. -Yes. | 1:09:38 | 1:09:41 | |
We followed the trail of your cheques | 1:09:41 | 1:09:45 | |
-to the PO boxes in Holland. -Yes. | 1:09:45 | 1:09:48 | |
And to this man. He owned quite a few of the PO boxes in Holland | 1:09:48 | 1:09:53 | |
-that you were sending your money to. -Yes. | 1:09:53 | 1:09:55 | |
-He provides a caging service. -Right. | 1:09:55 | 1:09:57 | |
-That means that in this scam... -Mm-hm. | 1:09:57 | 1:10:00 | |
..he collects the money, counts it, | 1:10:00 | 1:10:02 | |
and then sends it out to the next person. | 1:10:02 | 1:10:05 | |
He was caught recently in America. | 1:10:05 | 1:10:08 | |
They took action as a result of your information to the Dutch, | 1:10:08 | 1:10:13 | |
the Dutch, the Americans combined, | 1:10:13 | 1:10:15 | |
and Mr Dekker's been put out of business. | 1:10:15 | 1:10:17 | |
-What do you think? -Good. Good. | 1:10:17 | 1:10:19 | |
It's good enough for him. | 1:10:19 | 1:10:20 | |
He was taking 18 million a year from people in the United States. | 1:10:20 | 1:10:26 | |
Oh, my goodness me. | 1:10:26 | 1:10:28 | |
-Surprise you? -It does. Really surprises me. | 1:10:28 | 1:10:31 | |
But I'd like to meet that man and give him a piece of my mind. | 1:10:31 | 1:10:35 | |
But I'm glad he's getting his punishment. | 1:10:35 | 1:10:39 | |
If he's put out of business and so forth, | 1:10:39 | 1:10:41 | |
let him know what it's like to be left penniless. | 1:10:41 | 1:10:44 | |
I'm going to tell you the next bit on the trail of your money. | 1:10:46 | 1:10:51 | |
-And it brings us over... to this gentleman. -Yes. | 1:10:51 | 1:10:56 | |
And his company is called... | 1:10:56 | 1:10:59 | |
-PacNet. -..PacNet Services. -Right. | 1:10:59 | 1:11:02 | |
It's a payment processor | 1:11:02 | 1:11:04 | |
who makes sure that the proceeds reach the principals involved | 1:11:04 | 1:11:09 | |
in the criminal actions. | 1:11:09 | 1:11:11 | |
Well, there you are. That's a surprise. | 1:11:11 | 1:11:14 | |
Mr Davis, we asked him about your situation, | 1:11:14 | 1:11:18 | |
we asked him about money | 1:11:18 | 1:11:20 | |
that was taken from an elderly woman in Northern Ireland | 1:11:20 | 1:11:23 | |
and what he had to say about it, | 1:11:23 | 1:11:25 | |
and he said that PacNet were sorry | 1:11:25 | 1:11:28 | |
that people were unable to manage their own affairs, | 1:11:28 | 1:11:31 | |
to manage their money properly. | 1:11:31 | 1:11:35 | |
What do you...? What do you think about that comment? | 1:11:35 | 1:11:38 | |
Well, I think he didn't care. | 1:11:38 | 1:11:40 | |
Need a good telling off and let him know what... | 1:11:40 | 1:11:43 | |
what it's like to take your money and send it to criminals. | 1:11:43 | 1:11:49 | |
Elizabeth was caught in a global mail scam | 1:11:53 | 1:11:55 | |
that saw her money travel to Holland, | 1:11:55 | 1:11:57 | |
where it was collected and opened by Trends caging services... | 1:11:57 | 1:12:01 | |
..who sent her cheques to banks in England | 1:12:03 | 1:12:06 | |
and into the accounts of payment processors | 1:12:06 | 1:12:08 | |
who, if not knowingly involved, | 1:12:08 | 1:12:10 | |
were unwittingly being used by the crooks hiding behind them | 1:12:10 | 1:12:14 | |
to launder the cash taken fraudulently. | 1:12:14 | 1:12:17 | |
The key part of the scam | 1:12:22 | 1:12:24 | |
is to trick banks into cashing fraudulently-obtained cheques. | 1:12:24 | 1:12:28 | |
Paul Lewis is not optimistic | 1:12:31 | 1:12:33 | |
that the system will change any time soon. | 1:12:33 | 1:12:36 | |
The crooks are cleverer and faster than the banks | 1:12:38 | 1:12:41 | |
who they're using in their crimes, | 1:12:41 | 1:12:44 | |
and I think that will probably continue to be the case. | 1:12:44 | 1:12:47 | |
They know how the systems work and they know how to exploit them. | 1:12:47 | 1:12:50 | |
A crucial part of the scam | 1:12:54 | 1:12:56 | |
is the use crooks make of payment processors. | 1:12:56 | 1:12:59 | |
Muthupandi Ganesan says, like banks, | 1:13:01 | 1:13:05 | |
payment processors have obligations to fight fraud. | 1:13:05 | 1:13:09 | |
Absolutely, because they are also a financial provider, | 1:13:10 | 1:13:15 | |
a financial remedy provider, if I can put it like that. | 1:13:15 | 1:13:19 | |
They are also under a duty | 1:13:19 | 1:13:22 | |
to ensure that they are not allowing their mechanisms | 1:13:22 | 1:13:25 | |
to be used by fraudsters for money laundering | 1:13:25 | 1:13:28 | |
or washing up of illegal proceeds of crime. | 1:13:28 | 1:13:31 | |
The body charged with regulating payment processors in the UK | 1:13:36 | 1:13:40 | |
is the Financial Conduct Authority, the FCA. | 1:13:40 | 1:13:43 | |
Despite recent evidence from America | 1:13:47 | 1:13:49 | |
where, as we now know, PacNet have been designated | 1:13:49 | 1:13:52 | |
as a transnational criminal organisation, | 1:13:52 | 1:13:55 | |
the FCA say they continue to authorise parts of the PacNet Group | 1:13:55 | 1:13:59 | |
to operate in the UK. | 1:13:59 | 1:14:01 | |
They say they are considering what action to take. | 1:14:04 | 1:14:07 | |
Andrew Saks-McLeod finds this astonishing. | 1:14:09 | 1:14:14 | |
Bearing in mind that the US Department of the Treasury | 1:14:14 | 1:14:17 | |
considers PacNet to be... | 1:14:17 | 1:14:19 | |
and all of its subsidiaries, to be a fraudulent criminal organisation | 1:14:19 | 1:14:23 | |
and a money-laundering organisation, | 1:14:23 | 1:14:25 | |
the Financial Conduct Authority's payment services provider register, | 1:14:25 | 1:14:29 | |
just a few days afterwards, actually held its hand out and said, | 1:14:29 | 1:14:34 | |
"We're aware of the US Treasury sanctions on the company, | 1:14:34 | 1:14:39 | |
"we don't stand by that and, actually, | 1:14:39 | 1:14:41 | |
"we consider to uphold the regulatory status of PacNet | 1:14:41 | 1:14:45 | |
"and its subsidiaries in Britain," | 1:14:45 | 1:14:47 | |
which is quite astonishing, in my opinion. | 1:14:47 | 1:14:50 | |
In the United States, it was the actions of the US mail | 1:14:52 | 1:14:56 | |
that led to the closing down of Trends and PacNet in America. | 1:14:56 | 1:15:00 | |
We asked the FCA if they would appear in this programme | 1:15:05 | 1:15:08 | |
and explain the actions they're taking | 1:15:08 | 1:15:10 | |
to help people like Elizabeth. | 1:15:10 | 1:15:12 | |
They were not prepared to take part. | 1:15:14 | 1:15:16 | |
I think the Financial Conduct Authority | 1:15:17 | 1:15:19 | |
should certainly talk to you. | 1:15:19 | 1:15:21 | |
Fraud is one of the very few crimes that's growing, | 1:15:21 | 1:15:25 | |
and around half of all crime is fraud, | 1:15:25 | 1:15:29 | |
and I use the word fraud, which technically is what it is, | 1:15:29 | 1:15:32 | |
but as far as this lady's concerned, it is theft | 1:15:32 | 1:15:35 | |
as much as if someone came and took her handbag in the street. | 1:15:35 | 1:15:39 | |
As Elizabeth continues to rebuild her life, | 1:15:45 | 1:15:48 | |
the investigation she helped trigger | 1:15:48 | 1:15:51 | |
continues in Europe and the United States, | 1:15:51 | 1:15:54 | |
where more payment processors are being investigated. | 1:15:54 | 1:15:57 | |
Spotlight can reveal that a multi-force investigation | 1:16:02 | 1:16:05 | |
is currently ongoing in the United Kingdom | 1:16:05 | 1:16:08 | |
and it's codenamed Operation Nuncio. | 1:16:08 | 1:16:11 | |
As one source close to the investigation told Spotlight, | 1:16:12 | 1:16:16 | |
this is being seen as an all-out effort | 1:16:16 | 1:16:18 | |
to stamp out the scourge of scam mail once and for all. | 1:16:18 | 1:16:22 | |
Until then, people in Northern Ireland will remain at risk | 1:16:23 | 1:16:27 | |
of falling victim to scams | 1:16:27 | 1:16:29 | |
that net an estimated £100 million here every year. | 1:16:29 | 1:16:34 |