Two men jailed for Irish role in €22 million theft, laundering network

Two men have been jailed for their roles in a crime network that cloned the websites of Irish trading companies and sold phantom goods to unsuspecting customers in Ireland and abroad. While payments for the goods, including tractors, were made via cloned websites, and marketplace sites, the goods were never delivered and the money was lost.

In one case, the victim of a fraud had his personal details used by the fraudsters, supported by false documents created in his name, to open bank accounts. These were then used to launder the money stolen from other victims. To date 10 men involved in the frauds have been convicted and jailed in the Republic following a major investigation by a team of detectives at the Garda National Economic Crime Bureau under Det Supt Michael Cryan. While the gang continues to operate internationally, the Garda operation closed down their five Irish cells.

Gheorghe Gherge (35) of Dargle Road, Drumcondra, Dublin was jailed for 3½ years on Monday while Daniel Semen (32) was imprisoned for two years and eight months. Both from Romania, Gherge was extradited from the UK last year to face charges in the Republic while Semen was extradited from his native Romania in January.

They were among a large group of international criminals targeted in Ireland under Operation Omena. Gardaí have said the gang targeted had stolen about €24 million from victims all over Europe, including in Ireland, between 2016 and 2020. About €7 million of the proceeds of those crimes had been laundered through the Irish banking system.

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Gherge, a father of one and university dropout, opened 17 different bank accounts using false identification documents as part of his role in the money laundering network, including making withdrawals. Some €670,000 passed through the accounts he opened. He was jailed by Judge Dara Hayes Dublin Circuit Criminal after pleading guilt to two counts of using false instruments and two counts of money laundering, between June 2016 and April 2019.

Judge Hayes said Gherge was not a money mule, somebody used by gangs solely for access to their bank accounts to move stolen money. Instead, he filled a more senior role in the criminal enterprise. His crimes were serious and were “committed in the context of serious criminality” at a time when online frauds had “become an enormous problem”.

Semen, who was arrested in Romania in January and extradited to Ireland just weeks later, was initially charged with 12 counts, seven for money laundering and five for using false instruments. He pleaded guilty to the false instrument charges.

In about 2018, gardaí began receiving requests for assistance from other European police forces after victims across Europe paid for a range of items online – from tractors to caravans, vintage cars and jewellery – which in reality never existed. Instead, the money was paid into a vast array of accounts controlled by a crime gang. The nucleus of the group is based in the Romanian city of Valcea, dubbed “Hackersville” in the media because so many international frauds have been traced to the region.

Once the Garda team in Ireland began investigating they discovered the gang had established an Irish base that was organised in five cells, in counties Dublin, Donegal and Cork. The gang is known for meticulous planning, with its members keeping receipts for day-to-day expenses so they can be reimbursed. When gardaí raided the properties in Ireland linked to the gang the evidence found revealed a highly organised and disciplined criminal network, populated by many members who had been university-educated in Romania.

Every bank account opened was given its own shoebox and in that box was stored a mobile phone and SIM card along with any financial or other documentation related to the account. The same phone or SIM was only ever used to conduct business linked to one account. That precaution ensured a phone or the person operating it could not be linked to other accounts or transactions across the criminal network.

While many of the bank accounts were opened using false identification, others were opened in the names of the account holders, or money mules. These were Romanian people flown into Ireland for the purposes of opening one or more bank accounts. If they simply opened accounts and then surrendered each one for use by the gang they would receive a once-off payment of €400 per account and fly back to Romania. However, if they agreed to stay in Ireland and conduct the business linked to the accounts they opened, such as making withdrawals of cash in bank branches, they would be paid 5 per cent of everything they withdrew for the gang.

When they flew to Ireland, transport would be provided to the airport in Romania and at the other end in Dublin, where they would be collected at the airport and taken to their accommodation. Their flights and accommodation would be paid for in advance, and once they kept receipts for any other expenses incurred while in Ireland they would be reimbursed that money on their return to Romania.