Estate agents ‘help Russian criminals launder cash by buying mansions’
HIGH end estate agents are helping foreign criminals launder money through London properties, it has been revealed.
In an undercover investigation, journalists posing as a corrupt Russian politician and his girlfriend viewed five mansions in central London with price tags ranging from £3 million to £15 million.
Despite being told that the money being used was obtained illegally, the Channel 4 programme shows agents from reputable firms such as Winkworth, Chard, Domus Nova, Marsh & Parsons and Bective Leslie Marsh agreeing to move forward with the sales.
They even go as far as to offer advice on how Boris – the cover name used by investigator Roman Borisovich – can hide his criminal activity and complete the sale anonymously.
The revelations come as a surge in the number of foreign investors, often Russian and Asian, investing in luxury London properties has seen prices soar over recent years.
Speaking on From Russia With Cash, which airs tonight on Channel 4, Chido Dunn, from campaign group Global Witness, said London has become ‘the money laundering capital of the world’. She added: ‘For as long as we allow dirty money to enter the UK we are effectively propping up a system overseas that is ruining lives and corruption systems.’
According to legal experts, by not reporting Mr Borisovich’s admissions of criminal activity the estate agents are breaking the law and, if such a deal were to go ahead, they could face years in prison.
The first property viewed on the show is a four bedroom Kensington property worth £3.25 million. The investigators are shown around by James Moran, of Winkworths. A sale would see the company make an estimated commission of £65,000.
After being told of Mr Borisovich’s need for anonymity in order to hide his criminal activity, Mr Moran says he has been in similar situations before and explains to the Russian that he needs to find a lawyer who ‘can create the package that works for you and for the seller’.
By law, Mr Moran should inform his company of his suspicious about money laundering and they should refer the case to the authorities. However, later that evening, he phoned Mr Borisovich’s assistant and described the deal as ‘too good to be true’.
Money laundering expert Jonathan Fisher QC, tells the programme: ‘By continuing with these discussions, the estate agent goes into this with both feet. Let’s face it, it’s mucky.’
He later added: ‘ It’s not a harmless activity, whether it’s Russia or whether it’s Nigeria or wherever it is in the world, somebody has lost out as a result of this person presenting himself with the proceeds of crime.’
The second property is a £4.95million three bedroom home in Chelsea. The undercover reporters are shown around by Peter Phillips, sales director at Chard Estate Agency, which would earn just under £100,000 commission from the sale.
Mr Phillips goes as far as to suggest a lawyer to Mr Borisovich, even giving him advice on what to tell a solicitor so as not to make him suspicious of wrongdoing.
The final property is a fivebedroom home in Chelsea worth £15,750,000. It is being sold by Bective Leslie Marsh, which could expect a commission of more than £300,000. Benson Beard, who is looking after the property, again offered a lawyer to help the undercover reporters with their fake situation.
Mr Borisovich said: ‘It’s appalling they would all agree to keep my identity secret and suggest different ways of going ahead when it is clearly stolen money.’
All the estate agents involved said they either had investigated or will investigate these cases but did not believe they had done anything wrong.
‘This money is ruining lives’