Calls for more scrutiny after police busted an alleged pokies money laundering operation in Springvale

An alleged money laundering operation at a Melbourne pokies venue represents a tiny fraction of a flourishing illicit trade, authorities say.

The arrest of three alleged money launderers accused of “washing” money at Greyhounds Entertainment at Springvale represents what police suspect is only the most brazen sliver of an illicit trade that has long flourished at suburban venues, and which authorities are only just beginning to properly understand.

Alleged ringleader Tram Ngoc Tran, 49, and her co-accused Xuan Huynh, 63 and Lan Huong Lam, 61, faced the Melbourne Magistrates’ Court briefly on Thursday after being charged over allegations they laundered $4.7 million through the suburban venue.

The syndicate is accused of industrial-scale money laundering using an age-old method.

Police will allege they purchased jackpots from patrons at a premium, then had venue staff write cheques for the winnings in their names, effectively converting illicit cash to what looked like legitimate gambling winnings.

Figures published by the state gaming watchdog, the Victorian Gambling and Casino Control Commission, reveal the sheer scale of the syndicate’s alleged offending.

Greyhound Entertainment in Springvale was raided. Picture: Brendan Beckett

Patrons at the venue lost $7.8 million in a similar period in which the trio allegedly laundered $4.7 million, meaning the money allegedly being “washed” by the syndicate was roughly half as much as what gamblers were losing.

VGCCC chief executive Annette Kimmitt told reporters this week the agency began investigating as far back as November 2020, including with undercover agents at the venue, after spotting red flags in the reams of data the agency collects in real time.

“Our investigation started with just routine data and audits that we do,” Ms Kimmitt said.

In Greyhound Entertainment’s case, the red flags largely involved the disproportionate number of jackpots the venue was paying out by cheques, instead of bank deposits.

Authorities say the illicit money laundering trade has long flourished at suburban pokies venues.

But the investigation that led to the Tran, Huynh and Lam’s arrests this week only became serious in late 2021, when national financial crime intelligence agency AUSTRAC — which was given access to the VGCCC’s databases in April 2021 — closely examined the data the pokies machines automatically send to the state regulator.

The precise details of the investigation into Tran, Huynh and Lam are yet to be publicly detailed in court, and a regulatory investigation into the venue operator remains ongoing, but the strict licensing conditions the venue — a community club — means investigators are expected to have crucial evidence they might not if the alleged money laundering had taken place at a pub.

Community Clubs Victoria chief executive Andrew Lloyd said: “Victorian clubs are different to other gaming venues because they hold the customer identification data, required when you sign-in to a club, as part of a longstanding licensing framework”.

“As the peak industry body representing community clubs in Victoria, including the venue of the recent raid … Community Clubs Victoria is committed to a zero tolerance stand on any illegal activity,” he said.

One of the women arrested by AFP officers after the raids.

Information released to the Herald Sun last week reveals Victorian pubs and clubs have not been properly reporting suspicious activities taking place in their pokies lounges.

In a year to March, 72 of the state’s 492 pokies operators reported more than 400 suspected money launderers and criminals to the authorities, with suspicious transactions totalling more than $10.5 million.

A subsequent campaign to increase reporting has since reports increase roughly six-fold, suggesting authorities have not had a proper grasp on the scale of money laundering being occurring at pokies venues.

Authorities fear the spike in reports has uncovered she sheer scale of money already being laundered in suburban pokies lounges across the state, and fear a state government crackdown on pokies at Crown Casino will see organised criminals exploiting suburban pubs and clubs even more in their endless bid to launder money.

Mr Lloyd said the only solution was a law enforcement crackdown.

“Community Clubs Victoria acknowledges the fine work of the Australian Federal Police, VGCCC, AUSTRAC and NAB in their joint efforts to stamp out money laundering in the Victorian gaming industry,” he said.

“We also expect the agencies behind this surveillance and enforcement activity will be as diligent in stamping out corruption in other gaming venues, notably at Crown Casino.”