Mugabe Rapheal Mubake faces trial over alleged $1.2m money laundering scheme

A man is on trial after a former high-profile federal politician was caught up in an elaborate email scam involving over one million dollars, a court has heard.

A man allegedly swindled a former high-profile federal politician before then trying to launder a total of $1.2m.

Mugabe Rapheal Mubake, 22, is standing trial in the District Court this week after allegedly being part of an email scam involving the purchase of a house.

Tom Macura, prosecuting, told the court Mr Mubake allegedly dishonestly received over $1.2m from Stephen Parry between October and November 2021.

The court heard Mr Parry, a former Tasmanian Liberal Senator, sent Mr Mubake seven separate transactions over five days, under the mistaken belief that he was transferring funds to his conveyancer for the purpose of a property in Hobart.

Mugabe Rapheal Mubake is on trial for money laundering and theft. Picture: Facebook

Former Senate President Senator Stephen Parry was the alleged victim of the scam. Photo: File

“The prosecution further allege that upon receiving those funds from Mr Parry, who had absolutely no connection to the accused, the accused then disposed of $608,000 from his primary bank account by making 14 separate transfers to other financial accounts,” Mr Macura said.

The court heard Mr Mubake allegedly transferred $300,000 to separate Commonwealth Bank accounts, as well as $170,000 to Coinspot, which is a cryptocurrency trading platform.

He also allegedly transferred sums of money to people, including family members.

Mr Macura said Commonwealth Bank was able to freeze and recover most of the money, but $206,665.06 was not recovered.

The court heard Mr Parry received an email from Graham Woodhouse Conveyancing which he believed contained the firm’s trust account details and transferred the money over.

“It transpires that an unknown person gained access to Mr Woodhouse’s computer system and email account and then sent the fraudulent email on 29 October 2021,” Mr Macura said.

“The prosecution do not allege that the accused was the sole operator who was responsible for designing and executing the fraud.

“It may well be that the accused was part of a joint enterprise and was directed by others to provide his bank account for the purpose of receiving Mr Parry’s funds as part of a wider scam.”

Mr Mubake, of Pooraka, pleaded not guilty to multiple counts of theft and money laundering.

Mr Macura said it was anticipated that the transactions would not be disputed but the key issue in trial would be whether Mr Mubake was dishonest in receiving the funds.

However, he said the manner in which Mr Mubake dealt with the funds, including the cryptocurrency platform, showed he did not come across them innocently.

Giving evidence on Wednesday, Mr Parry told the court felt confident he was communicating with Mr Woodhouse as the email address was identical.

The trial, before Judge Joanne Tracey, continues.