Queensland Consolidated Acts

CRIMINAL PROCEEDS CONFISCATION ACT 2002 - SCHEDULE 1

SCHEDULE 1 – Examples

Part 1 - Illegally acquired property examples

1 Example 1

(1) A acquires $40,000 as the proceeds of an illegal activity.

(2) A uses the $40,000 to buy land from B.

(3) The land is illegally acquired property.

(4) The money paid to B for the property continues to be illegally acquired property.

(5) A sells the land to C for $50,000.

(6) The land continues to be illegally acquired property.

(7) The $50,000 C paid for the land is illegally acquired property.

(8) A uses the $50,000 paid for the land by C to buy a car from D.

(9) The car becomes illegally acquired property and the $50,000 A used to buy it continues to be illegally acquired property, unless the purchase was for sufficient consideration from an innocent person.

2 Example 2

(1) A acquires $25,000 as the proceeds of an illegal activity.

(2) A uses the $25,000 to buy a car.

(3) The car is illegally acquired property.

(4) A sells the car to B for its market value of $22,000.

(5) B does not know, and has no reason to suspect, the car is illegally acquired property.

(6) The car, now in the hands of B, stops being illegally acquired property.

(7) The money B paid to A for the car is illegally acquired property.

(8) B sells the car to C, a used car dealer, who then sells it to A.

(9) When A buys the car from C, the car again becomes illegally acquired property.

Part 2 - Proceeds assessment example

3 Example 1

(1) A is found to have engaged in the serious crime related activity of procuring another person to engage in prostitution over 5 years.

(2) Money from engaging in the serious crime related activity was used by A—

(a) to lead a flamboyant lifestyle costing, on average, $60,000 for each year; and

(b) to pay off a mortgage on the mansion A lives in and a block of income producing home units.

(3) The mansion and home units were bought in the 5 years.

(4) A—

(a) had no assets at the start of the 5 years; and

(b) can not show a source of property gained in the 5 years other than income from the units, which produced an annual net income of $20,000.

(5) The mansion and units are worth $1m.

(6) Under sections 82 (1) and 83 —

(a) the $1m current value of the mansion and units is derived proceeds; and

(b) the amount of $400,000, made up of the $60,000 mentioned in subsection (2) (a) , and the $20,000 mentioned in subsection (4) (b) , for each year, is derived proceeds.

Part 3 - Tainted property examples

4 Example 1

(1) A is convicted of the confiscation offences of producing and possessing a dangerous drug.

(2) A owned lot 1 and grew the dangerous drug on adjacent lot 2. A gained access to lot 2 through lot 1.

(3) A camped on lot 1 while working at growing the dangerous drug and was found on lot 1 in possession of 5kg of the dangerous drug.

(4) Lot 1 was used in connection with the commission of the confiscation offence of producing a dangerous drug.

(5) Lot 1 is tainted property under section 104 (1) (a) .

(6) Lot 2 was used in the commission of the confiscation offence of producing a dangerous drug.

(7) Lot 2 is also tainted property under section 104 (1) (a) .

5 Example 2

(1) A is convicted of the confiscation offences of—

(a) supplying a dangerous drug; and

(b) carrying on the business of unlawfully trafficking in a dangerous drug.

(2) A used a motor vehicle to transport the drug to a proposed buyer.

(3) Whether the drug was on A or in A’s motor vehicle, the motor vehicle was used in connection with the commission of each offence mentioned in subsection (1) .

(4) The motor vehicle is tainted property under section 104 (1) (a) .

6 Example 3

(1) A is convicted of the confiscation offence of official corruption.

(2) A gave B, an officer of the public service, a race horse valued at $150,000 for B to destroy an official file.

(3) Because of the destruction of the file, A was able to have A’s lawfully acquired land rezoned.

(4) Before the rezoning the land was valued at $200,000. After the rezoning the land was valued at $1m.

(5) The race horse is derived by B from the commission of the confiscation offence of official corruption.

(6) The race horse is tainted property under section 104 (1) (a) or (c) .

(7) If the land is sold by A for $1m, $800,000 is tainted property under section 104 (1) (c) .

7 Example 4

(1) A is convicted of the confiscation offence of concealing property reasonably suspected of being tainted property.

(2) A came into possession of motor vehicle parts (the
"stolen parts" ) that A knew or had reason to suspect were stolen.

(3) A used the stolen parts to build 2 complete motor vehicles after later buying the rest of the necessary parts with the intention of combining them with the stolen parts.

(4) All parts were used in, or in connection with, the commission of the confiscation offence of which A was convicted.

(5) Before A was charged with the offence, A sold 1 motor vehicle for $30,000 and banked the money.

(6) A was still in possession of the other motor vehicle.

(7) The motor vehicle kept in A’s possession is derived from property used in, or in connection with, the commission of the confiscation offence and is tainted property under section 104 (1) (b) .

(8) The vehicle is also derived directly from the commission of the confiscation offence and is tainted property under section 104 (1) (c) .

(9) The banked $30,000 and its accrued interest is property derived by A from property used in, or in connection with, the commission of the confiscation offence and is tainted property under section 104 (1) (b) .

(10) The $30,000 (and interest) is also derived from the commission of the confiscation offence and is tainted property under section 104 (1) (c) .

(11) If A uses the $30,000 (and interest) to buy another vehicle, the other vehicle is derived from the commission of the confiscation offence and is tainted property under section 104 (1) (c) .

8 Example 5

(1) A is convicted of the confiscation offence of producing a dangerous drug.

(2) A used A’s warehouse to produce the dangerous drug.

(3) A sells the warehouse and uses the proceeds to buy a house.

(4) The house is property derived by A from property used in, or in connection with, the commission of the confiscation offence of producing a dangerous drug.

(5) The house is tainted property under section 104 (1) (b) .

9 Example 6

(1) A is convicted of the confiscation offence of carrying on the business of trafficking in a dangerous drug.

(2) On A’s arrest, police seized $100,000 in cash derived by A from the commission of the serious offence.

(3) The police deposit the $100,000 in a bank account in the name of the commissioner of the police service pending the outcome of the trial.

(4) The banked $100,000 and its accrued interest is derived from the commission of the confiscation offence.

(5) The property is tainted property under section 104 (1) (c) .

Part 4 - Assessment of benefits examples

10 Example 1

(1) A and B are separately convicted of confiscation offences of carrying on the business of unlawfully trafficking in a dangerous drug.

(2) C bought the dangerous drug from B on 5 occasions for $2,000—a total of $10,000.

(3) B gave the money to A.

(4) A paid B a total of $1,000.

(5) B acted solely as an agent or courier of A.

(6) A is—

(a) the supplier of the dangerous drug; and

(b) the principal with whom C, through B, dealt.

(7) Under sections 187 (1) (a) and (b) and 193 , the benefit derived by A is $10,000.

(8) Under section 187 (1) (a) , the benefit derived by B is $1,000.

11 Example 2

(1) A is convicted of the confiscation offence of carrying on unlawful bookmaking over 5 years.

(2) In the 5 years, A—

(a) received a total of $1m from punters placing bets; and

(b) paid a total of $400,000 to winning punters.

(3) Under section 187 (1) (a) and 193 , the benefit derived by A is $1m.

12 Example 3

(1) A is convicted of the confiscation offence of carrying on unlawful bookmaking over 5 years.

(2) Money from the business of unlawful bookmaking was used by A—

(a) to lead a flamboyant lifestyle costing, on average, $60,000 for each year; and

(b) to pay off a mortgage on the mansion A lives in and a block of income producing home units.

(3) The mansion and home units were bought in the 5 years.

(4) A—

(a) had no assets at the start of the 5 years; and

(b) can not show a source of property gained in the 5 years other than income from the units, which produced an annual net income of $20,000.

(5) The mansion and units are worth $1m.

(6) Under sections 187 (1) , 188 , 189 and 190 —

(a) the $1m current value of the mansion and units is a derived benefit; and

(b) the amount of $400,000, made up of the $60,000 mentioned in subsection (2) (a) , and the $20,000 mentioned in subsection (4) (b) , for each year, is derived proceeds.

13 Example 4

(1) A is convicted of the confiscation offence of carrying on unlawful bookmaking over 5 years.

(2) A carried on the business by—

(a) taking all bets on credit; and

(b) paying all winning bets and receiving all losing bets at the end of each week.

(3) The total value of all bets placed with A in the 5 years was $1m.

(4) The total value of all losing bets received by A in the 5 years was $600,000.

(5) Under section 187 (1) (a) , the benefit derived by A is $600,000.

14 Example 5

(1) A is convicted of producing a dangerous drug, that is, cannabis.

(2) A had grown and sold 1,000 marijuana plants.

(3) Each cannabis plant, on average, yielded 0.5kg of saleable material.

(4) The market value of the cannabis in the form sold was $2,500 for 0.5kg.

(5) Under section 187 (1) (c) (i) , the benefit derived by A was $2.5m.

15 Example 6

(1) A is convicted of the confiscation offence of concealing property reasonably suspected of being tainted property.

(2) A came into possession of motor vehicle parts (the
"stolen parts" ) that A knew or had reason to suspect were stolen.

(3) A used the stolen parts to build 2 complete motor vehicles after later buying the rest of the necessary parts with the intention of combining them with the stolen parts.

(4) Before A was charged with the offence, A sold 1 motor vehicle for $30,000 and banked the money.

(5) A was still in possession of the other motor vehicle.

(6) Under section 187 (1) (a) and 192 , the benefit derived by A is—

(a) the banked $30,000 and its accrued interest; and

(b) the value of the motor vehicle still in A’s possession.