It was hailed as the new law to hit the "Mr Bigs" of the crime world where it would hurt the most - their pockets.
It was hailed as the new law to hit the "Mr Bigs" of the crime world where it would hurt the most - their pockets.
When the Proceeds of Crime Act 2002 was introduced in Scotland, senior police and ministers talked about "taking the shirt off their backs" and ending gangsters' status as negative community role models who drove flashy cars but never did an honest day's work.
The new legislation would allow police and prosecutors to freeze, seize and ultimately confiscate the ill-gotten gains of drugs barons and criminals.
In some cases it has been a great success - with more than £25m seized since 2003 - but after reviewing its overall impact, senior officers have raised serious frustrations about its shortcomings.
Officers are now calling for amendments to the legislation, warning that from their point of view, on average just 10% of each criminals' total assets are being confiscated.
New figures obtained by The Herald show that last year some £18.7m of criminal assets were frozen through the criminal recovery unit, but just £2.8m was actually confiscated.
"When this was introduced they were talking about taking the shirts off their backs but we're lucky if we get the change out of their back pocket," said Les Gray, chairman of the Strathclyde branch of the Scottish Police Federation. "The system needs to be revamped. We need to look to the Republic of Ireland where the onus is far more obviously on the criminal to prove how they got their money rather than on the Crown.
"We have officers raiding the houses of the Mr Bigs only to find them sitting there reading Poca leaflets. They know how to put everything in their wife's name - they know all the loopholes."
The Criminal Assets Bureau in Dublin has a reputation for taking everything from those who have no legitimate income.
Currently, under the legislation the assets of convicted criminals can be pursued through criminal confiscation. At the outset their assets will be given an estimate value and frozen. Prosecutors then work through the details of any legitimate income with the defence.
However, what initially looks like a £300,000 house may in fact be worth far less depending on the mortgage details. And while the police may have seized £1m worth of cocaine - the value of the drugs might appear in the original restraint figure - the drugs themselves will be destroyed and are therefore ultimately worthless.
Moves to introduce an incentive scheme similar to that already in place for forces in England and Wales should help forces to increase their already over-stretched budgets and focus more time and effort on seizing criminals' assets.
The news came as prosecutors moved to strip more than £400,000 from two criminals in court yesterday.
Drugs baron John Gorman, 51, who is serving a 12-year jail sentence, agreed to hand over a total of £242,125. However, advocate depute Barry Divers asked the court to record "the proceeds of general criminal conduct" by Gorman at £760,658.
In a separate case taxi firm boss Peter Smith, 40, who was imprisoned for money laundering, was told to pay £174,712.
Both men appeared at the High Court in Edinburgh as a judge was told that confiscation actions brought against them under Proceeds of Crime legislation had settled.
Confiscation contenders
- Scotland's biggest confiscation order of £1.3m was made last summer against businessman Michael Voudouri, 37, of Bridge of Allan, Stirlingshire, who was jailed for four years in 2004 for a £3m VAT scam. Voudouri made millions through a scam known as "carousel fraud". He was ordered to hand over his £900,000 former manse home and £400,000 of other assets.
- Last year, Jamie "The Iceman" Stevenson was ordered to give up £747,000 of his criminal fortune, including houses, cars, a caravan and jewellery. It was Scotland's second highest confiscation order against an individual.
It comes on top of £204,000 police seized from Stevenson when he was arrested for money-laundering.
The 43-year-old is serving 12 years and nine months for laundering more than £1m of drug cash.
Prosecutors said that the proceeds of Stevenson's criminal conduct amounted to £1.02m. The Crown said it could identify £747,080 of realisable assets.
- Edinburgh drugs baron George Buchanan had his £350,000 home, eight bank accounts, two cars and Telewest shares seized last year. Prosecutors had applied to confiscate £430,000 but the judge ruled they had not proved all of it had come from crime. They seized £200,000.
- Russell Stirton was targeted in the Operation Maple money laundering probe in 2004. More than £5m in assets was frozen but as yet the authorities have been unable to confiscate it. In January 2004, Stirton's home in Mugdock, near Milngavie, and Alexander Anderson's home in Uddingston, Lanarkshire, and their business premises were raided. Even bank accounts in the names of Stirton's children, nieces and nephews were frozen. But neither man was charged.
There is a hearing due to start on May 19 at to decide whether the assets were acquired illegally.
