– The indictment is based on over 80,000 pages of documents and is one of the most resource-intensive eco-crime cases in Bergen ever, state prosecutor Rudolf Christoffersen at the Hordaland and Sogn og Fjordane state prosecutor’s offices tells TV 2.
For over three years, the police have been investigating a family network living in a luxury housing complex near the city centre.
The police are sitting on rare and unique evidence, a collection of notebooks containing an overview of both “black” and “white” income.
Field of notebooks
According to the public prosecutor, illegal income of several million kroner must originate from, among other things, car workshop operations and restaurant operations.
OVERVIEW: The police in Bergen have prosecuted a family network for serious economic crime. The network has kept careful accounts of both black and white income in primary school notebooks. Photo: Robert Reinlund / TV 2
Over many years, the network must keep painstaking accounts of both “white” and “black” turnover. This has been recorded in separate “note books”.
For the police’s investigators, this, together with receipts documenting the use of black cash, has been a gift package.
In what is known to many as “school notebooks”, the network has listed amounts that document income that has been kept hidden from both accountants, auditors and the tax authorities.
Black million revenues
– We believe we can prove that several millions in illegal turnover in a number of limited companies have been channeled into private bank accounts for themselves and close family members. The money is then laundered and invested in property, says Christoffersen.
NUMBERS: The police in Bergen have prosecuted a family network for serious economic crime. The network has kept careful accounts of both black and white income in primary school notebooks. Photo: Robert Reinlund / TV 2
According to the prosecution, income in the millions has been funneled into extensive and large property purchases.
Abuse of bank terminals
According to the indictment, the defendants have used double sets of bank terminals, where unsuspecting customers have paid for goods and services, but without knowing that the money has gone directly to private accounts.
BANK TERMINAL: At Clas Ohlsson you can buy an iZettle Reader 2 for 1,000. A portable card reader such as this one has been used. Photo: Clas Ohlson
This is possible because the players have used iZettle, a payment terminal that can be bought in several stores.
– In this way, turnover has been left out of accounts and hidden from accountants and tax authorities, says Christoffersen.
When the company has sent invoices to customers, private bank account numbers, and not the company’s official bank account, have in many cases been applied.
– Cash will often be used to hide tracks, whereas here they have taken care of the receipts for cash payments. The police have now seized this after searching the defendants’ homes, and it is an important part of the evidentiary basis for the prosecution, says Christoffersen.
Used the children’s bank account
– Own children’s accounts have also been used, here millions have been laundered, without it being caught by the banks, explains Christoffersen.
Through these accounts, significant amounts have been attempted to be laundered.
ØKO-CRIME TEAM: From left, state attorney Rudolf Christoffersen, special investigator Ronny Haldorsen, police attorney Torunn Strand and aid auditor Marita Løkken Rolfsen. Photo: Tor Henning Flaatten / TV 2
According to the police, illegal income is also used as security and equity for loans when buying property, explains Christoffersen.
As a result of the Money Laundering Act, there were routines for how large amounts of cash could be deposited when using Post i Butikk.
The amount limit was NOK 25,000. According to the police, the defendants have circumvented the amount limit by traveling around a number of Post i Butikk premises in order to manage to pay in larger amounts of cash overall.
Pleads partially guilty
The public prosecution submits a request for confiscation of assets worth at least NOK 20 million. The case will probably come before the court during the autumn of 2023.
Jørgen Riple, Einar Råen and Ivar Abrahamsen have been appointed as defense counsel for the three defendants.
Riple says to TV 2 that his client partially pleads guilty.
– We were clear that there was going to be a comprehensive indictment. What we are reacting to is the notified confiscation demand of NOK 19 million. It was significantly higher than we had expected, says the lawyer.
TV 2 has been in contact with Råen and Abrahamsen, who do not wish to comment.
Post office
In one example, an invoice of NOK 95,000 has been paid through several payments of less than NOK 25,000, in various “Post i Butikk” on the same day.
During the search, several invoices were found with accompanying receipts which showed that the invoices had been paid in cash using the “Post i Butikk” service.
It has been found that invoices were paid with cash for at least 1.2 million in the years 2016-2018.
TRAVEL ROUTE: Illustration is an example of how an invoice of NOK. NOK 96,378 was paid in cash in five different shops. Based on the receipts for the cash payments of the invoice, an illustration has been created that shows the time, cash amount and in which store the invoice was paid, as well as a possible driving route from Google Maps Photo: Police
The police’s aid auditor Marita Løkken Rolfsen points to an example where the defendant has, for example, traveled around five different shops to pay the invoice in cash.
– This was done in about an hour. According to Google Maps, the drive takes 22 minutes, but we see from the receipts that it was done within an hour, Rolfsen explains to TV 2.
The defendants have been so concerned with having control that they have collected a number of receipts and vouchers relating to cash payments, including those documenting criminal acts.
Fooled the authorities
According to the police, the defendants have tricked the authorities for 10 years before they were exposed. Neither NAV, banks nor control institutions have managed to catch the offences.
The tax authorities eventually became suspicious and reported the case to the West police district, and have further assisted in the investigation.
– The case illustrates the failure of the control systems when it is possible to own and run a limited company with a turnover of millions and a number of employees, while at the same time the top manager of the company receives unemployment benefits from NAV.
Christoffersen believes this is too simple and that the authorities must now take action.
– The era of a trust-based social security system is over, points out Christoffersen.
The authorities must put in place systems that make it easier for the control agencies to detect serious economic crime in working life and fraud with social security benefits, says the state attorney.
Must share information
The State Attorney believes that it must be easier to share information between the control agencies.
– It is too easy for fraudsters and white-collar criminals to hide their criminal activities. It is important that privacy considerations are taken care of in public agencies, but at the same time we must avoid this being misused so that serious economic crime harmful to society is not detected, says Christoffersen to TV 2.
EVIDENCE: Marita Rolfsen, aid auditor in the West police district and Ronny Haldorsen, special investigator in the West police district, have worked for over three years on the case. Photo: Robert Reinlund / TV 2
He is now calling for greater vigilance from the banks.
– One problem is to clarify who has the obligation to report when what in this case amounts to millions, via an account to one’s own minor children? I think the banks should perhaps catch this under the Money Laundering Act. In any case, it should be a learning point that it was not caught, states Christoffersen.
