UK: Money launderer's assets frozen

The Assets Recovery Agency (ARA) has been granted a Property Freezing Order over assets with an estimated net value of GBP202,500 held by Paul Andrew Newmarsh of Hollyhurst Grove, Solihull, West Midlands. This case was referred to ARA in April 2007 by West Yorkshire Police. Newmarsh, who is currently serving a four year prison sentence for two counts of money laundering, was arrested in July 2006 in relation to Conspiracy to Supply Class A Drugs between September 2002 and March 2005 and two money laundering offences.

On 5 April 2007 at Leeds Crown Court he was acquitted of the drugs charges but found guilty of the two counts of money laundering contrary to section 329 of the Proceeds of Crime Act and sentenced to four years imprisonment. In its civil recovery action the Agency alleged Newmarsh had acquired his assets, namely three properties in the Birmingham area and money in various bank accounts as a result of his unlawful activities, including money laundering, mortgage fraud and tax evasion.

The assets subject to the freezing order include:

* A property at Hollyhurst Grove, Solihull;

* A property at Park Mews, Solihull;

* A property at Tile Cross Road, Stechford; and

* Money held in various bank accounts.

ARA Deputy Director Operations, Charlie Dickin said: "This is a further example of the use of civil recovery powers to target the assets of those who are involved in serious crime. "We have made a good, arguable case to the High Court that this property was derived from the proceeds of unlawful activity and the Property Freezing Order will prevent them from being dissipated while our financial investigators continue with their investigations to establish both their source and any other assets which we will seek to recover where appropriate."

At this point, assets have been 'frozen'. The Agency's investigation into the provenance of Mr Newmarsh's assets will continue. When the Agency's investigation is completed it will apply for a Recovery Order on any assets that are considered 'recoverable'.

Any legal tenants residing in the property belonging to Mr Newmarsh are not connected to the criminality in this case.