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ARA recovers £750,000 worth of assets of International people trafficker

ASSETS RECOVERY AGENCY News Release issued by The Government News Network on 5 February 2008

The Assets Recovery Agency (ARA) has obtained a Civil Recovery Order in the High Court in London worth an estimated £750,000 against Gheorghe and Victoria Virtosu, Crescent Way, Norbury, London.

In its case against the Virtosus, the Agency successfully argued that Gheorghe Virtosu had obtained his assets through criminal activity, namely the human trafficking of people, mainly women from Eastern Europe (mainly Romania and Moldova) through to France and onward into the UK where many were forced to work in brothels to repay their 'debts'.

The recoverable assets include the property at Crescent Way, Norbury London, some £11,000 in a number of bank accounts and a BMW X5. The respondents were also ordered to pay costs.

This case was referred to the Agency in July 2005 by the then National Crime Squad (now SOCA), following a joint international immigration operation with the French authorities (Op Jaundiced) in 2004 resulting in Virtosu and other members of his gang being arrested in France and the UK.

In February 2005 Virtosu was convicted in the Nice Court of First Instance on six counts including, aiding, in an organised gang, the illegal entrance or residence of a foreign national to a State that was a party to the Schengen Convention, use of forgery in an administrative document that established a right, identity or authority, receiving stolen goods, receiving the proceeds of a crime that was punishable by a sentence not exceeding 5 years' imprisonment, aiding and abetting the counterfeiting or forgery of a payment or withdrawal card and administrative documents and aiding and abetting living on the proceeds of prostitution by supplying resources and enticement. The French Court named him as the gang leader and sentenced him to 8 years imprisonment. He was fined E500,000 and his French apartment was confiscated by the French authorities. However, the French authorities could not use his UK assets to satisfy the fine.

The case was referred to ARA on the basis that, with the French unable to use Mr Virtosu's UK assets to satisfy the fine imposed by the French Court, once released he would still have access to substantial assets which had been purchased with the proceeds of his illegal activities, namely people trafficking.

On 12 January 2006 the Agency successfully obtained a Property Freezing Order effectively freezing the UK assets while it carried on its financial investigation. In January this year the Agency sought recovery of the assets, arguing that the large and numerous cash deposits in bank accounts used to purchase his assets were the proceeds of people trafficking. Following a two and a half day trial, Mr Justice Tugendhat granted the Agency a Civil Recovery Order in respect of all the remaining assets but also allowed the Virtosus leave to appeal.

Charlie Dickin, ARA Deputy Director of Operations said: "We successfully concluded this investigation after the French authorities were unable to pursue the UK assets in this case.

"Trafficking women for prostitution in this way is a modern form of slavery. Mr Virtosu had amassed significant assets from his unlawful activity and we clearly demonstrate the effectiveness of our unique civil powers in ensuring we reduce harm in our communities.

"It also sends out a clear message that working in partnership with law enforcement across the UK and in other jurisdictions will ensure that justice will be done and that assets can be seized in the UK even if the crimes are committed in other countries."

Notes to Editors:
1. The final amount recoverable will depend on the price both houses fetch when sold and any existing mortgage and other liabilities.

2. The Proceeds of Crime Act 2002 created the Assets Recovery Agency and provided completely new powers to allow ARA to seek civil recovery of the proceeds of unlawful activity by an action in the High Court. The Agency can also issue tax assessments where there are reasonable grounds to suspect that there is taxable income, gain or profit from criminal conduct.

3. The Agency is playing its part in the multi-agency approach to deliver the Government's Asset Recovery Strategy. Under the cross government initiative 'Payback', the tracing of and recovery of assets is seen as an important element in the delivery of justice, and sends out a strong deterrent message. The overall aims of the strategy are to make greater use of the investigations of criminal assets in the fight against crime; recover money that has been made from crime or which is intended for use in crime; prevent criminals and their associates from laundering the proceeds of criminal conduct, and detect and penalise such laundering where it occurs; to use the proceeds recovered for the benefit of the community.

4. On 31 October 2007, the Serious Crime Bill received Royal Assent. The new Act will merge the operational elements of the Assets Recovery Agency (ARA) with the Serious Organised Crime Agency (SOCA), and the training and accreditation functions with the National Policing Improvement Agency (NPIA). It will also extend to certain prosecutors the power to launch civil recovery action under the Proceeds of Crime Act 2002. Until then ARA will continue to operate as before and use its powers to the full in proceeding to complete existing cases and adopt new cases for future action.

Assets Recovery Agency, PO Box 39992
London EC4M 7XQ

T +44 (0)20 7029 5700
F +44 (0)20 7029 5706
E enquiries@ara.gsi.gov.uk http://www.assetsrecovery.gov.uk