Latvian State Police has dismantled a criminal group that provided professional money laundering services in the country using a network of more than 90 «money mules».
In February 2022 Latvian State Police Department of Cyber Crimes commenced criminal proceedings after receiving information from a Latvia-based credit institution that noticed systematic fraudulent payment activity on accounts of some of its clients.
Information acquired in the investigation indicates that there was a wide network of «money mules» in Riga, which consisted of youngsters aged 16 to 20 years, who received flash payments on their accounts. These payments mostly came from German citizens. Money from those accounts were then rapidly withdrawn in cash. In most cases this was done around midnight.
Victims say that upon finding their accounts emptied usually tried to call off the transactions made during the night on the next day. However, considering that organisers of this criminal group ensured money was immediately taken from the «money mule’s» account, only a small number of victims were able to intercept and recover the stolen money.
Data analysis reveals that around 30 such crimes were committed in a single month. According to authorities, this criminal group may have been active in Latvia since September 2019.
Latvian police performed numerous investigation-related activities to put a stop to the criminal group and identify the suspects. In to months efforts resulted with success.
The investigation revealed the criminal group consisted of 14 members. One of them was a citizen of Germany. This person coordinated the group from Germany. The organiser had recruiters look for «money mules» with bank accounts in Latvia. The group used these people to receive and move illegally acquired money.
Money withdrawn from «money mules» was then given away in the form of virtual currency.
Following directions from organisers, members of the group also distributed acquired money among themselves. Money mules were paid 50 to 250 euros for their services if they participated in activities multiple times. This way the criminal group was able to launder more than EUR 555 600.
In April 2020 police detained 13 members of this group.
Among those detained individuals were also the leaders of the criminal group. Both were put under arrest.
The leader of the group was detained in Germany in May 2022 thanks to a European arrest warrant, which was issued as a result of long international cooperation between law enforcers of different countries. The German citizen was detained and later arrested after a number of several searchers, interrogations and special investigative activities. Germany extradited him to Latvia for criminal prosecution in summer 2022.
In August 2022 Latvian police handed criminal proceedings to the Specialized Prosecution Office for Organised Crime and Other Branches to commence criminal prosecution.
Considering the large number of youngsters that agreed to assist the criminal group by becoming «money mules», State Police stresses to society that such actions carry criminal liability.
People who agree to become a «money mule» have to keep in mind that they will not only face criminal liability, but will also experience difficulties for the remainder of their lives because banks close down such people’s access to their bank accounts and access to internet banking services.