Unusual activity prompted probe into Offaly bank account

A YOUNG man who thought he was investing in bitcoin mistakenly allowed his bank account to be used for money laundering.

Tullamore Circuit Court heard how the Ulster Bank account of Shaun Davey, 31st Lock House, Rahan, was used to divert payments a Mexico-based company was attempting to make to another company.

Mr Davey was aged 19 when three payments worth a total of over €17,000 were made into his account at the Ulster Bank, High Street, Tullamore.

Using his account at the Ulster Bank, High Street, Tullamore, he laundered €1,161.53 on November 13, €16,289.48 on November 18 and €110.79 on December 14, 2020.

Details of an investigation were outlined by Detective Garda Colin O'Leary during a sentencing hearing before Judge Keenan Johnson.

Detective Gda O'Leary said he received correspondence from Ulster Bank Ireland notifying him of a suspected fraud in relation to Shaun Davey's account and there was also a statement of complaint from the Royal Bank of Scotland financial crime office in relation to the receipt of fraudulent funds by the accused.

The payments were initiated by Nidec Mobility Mexico from their company account and were to be in favour of a company called Lucky Plastic Mould Ltd but in fact the money was diverted into Mr Davey's account.

Detective Garda O'Leary said that in March last year he called to Mr Davey's address and was told by his parents that he was working at Egan Stone, Kilbeggan and from there he was brought to Tullamore Garda Station after being arrested on suspicion of money laundering.

When interviewed by the gardai the accused explained that he had seen something on Snapchat about bitcoin where money would be bought on a bitcoin wallet and then sent to a bank account using another wallet.

Mr Davey said when he asked how he could do this he was asked to set up two bitcoin wallets on his own iPhone and he used his passport for verification.

About a month later he gave an individual his bank account details and bank card so that person “could put a bit left over from a bitcoin currency exchange” into the account of the accused.

He was also brought by car by “two lads” to the bank to lodge €100 in his account to prove it was working and he gave the other man, whose identity he would not divulge for his own safety, a receipt for it.

His own bitcoin wallets were apps he got from the Apple store and they were linked to his bank account but he did not think the other person used them.

He knew the other person from playing soccer in his youth and he met him twice in person to give him all the log-in details of his bitcoin wallets and bank account.

Mr Davey told the gardai that nothing happened for two or three months and he told the other person he wanted his bank card back because he had started working and money would be going into his account.

There had been nothing in his bank account previously so he was not worried. The other individual told him he no longer had his bank card and when he was asked to “cut it up or get rid of it” the accused was told “there was a job going through soon” and there was an argument between them.

The following October or November about €1,000 went into his account and he was told in a Snapchat text by another lad “that's all for you man”.

He was panicking when about a week later €16,000 went into his account and when he texted the other person about it he was given “another lad's Whatsapp” and that individual gave him details of Revolut accounts to transfer funds into from his own Revolut account.

Mr Davey said his account was then used by the other individuals to make online purchases and transfer money to English accounts after it was changed into pounds.

Eventually he got a letter from Ulster Bank telling him his account was closing.

Kevin White, BL, prosecuting (instructed by Sandra Mahon, state solicitor), agreed with Judge Johnson that Mr Davey had been duped.

Detective Garda O'Leary said he profited by about €2,000 and that money was spent on online games and clothing.

Judge Johnson remarked: “He was a typical money mule where they play on somebody who was immature.”

Detective Garda O'Leary agreed with Stephen Byrne, BL, defending (instructed by Donal Farrelly, solicitor) that Mr Davey was a decent young man from a decent family and he had got involved in the matter without fully appreciating the seriousness of it. The offence had been out of character.

The garda agreed the accused had been terrified, had a genuine fear of the people who were controlling his money, and had been extremely naive. “It struck me as a case of being in over his head,” he said.

Mr Davey, who will be 21 at the end of April, had no previous convictions and Mr Byrne handed in two references for him, including one from a retired garda and details of the defendant's involvement “to a fairly significant level” in boxing and MMA.

The accused had an MMA bout coming up on April 24 and he could have a future, either amateur or professional, outside of Ireland.

Judge Johnson said Mr Davey was an innocent abroad when he was enticed into the money laundering operation and “like a lot of young people” he thought he would make a quick buck.

The judge added: “This is the problem with social media and Snapchats and all these things that encourage people to click and then they're in trouble.”

He adjourned finalisation of sentence to July 19 next for the payment of €3,000 to charity and because he believed the offence was a one-off aberration, he would then apply the Probation Act because a conviction would restrict Mr Davey's travel to the US and that would be a disproportionate penalty.