Alleged 'money mule' charged with laundering $1m fraud

Police have charged a 60-year-old man with two counts of money laundering after raiding his Auckland home.

He's since appeared in Auckland District Court and cannot be named at this time.

Police say they will allege the man is directly linked to two recent cases where two victims lost $950,000 and nearly $1 million respectively in a term deposit-style scam.

Auckland City District Financial Crime Unit officers searched the man's home and took electronic evidence as part of an ongoing investigation into "money mules"; people who knowingly or unknowingly aid scammers by passing on money obtained by fraud.

"If you think you are laundering money, I recommend that you advise your bank immediately and seriously consider self-reporting to the police, rather than the police knocking on your door with a search warrant or to arrest you," says Detective Senior Sergeant Craig Bolton.

“If you are receiving money into your account from people you have not met and don’t know and keeping some of the money for yourself before sending the bulk of the money overseas - you are a money mule and you could be arrested and prosecuted for money laundering."

Working closely with banks, police say they have managed to recover $600,000 so far for the victim who lost nearly $1m.

The term deposit scam has been active recently and targets people with large sums, perhaps from their retirement funds or a house sale, who may be looking for a safe place to put their money. Potential victims may be approached online via message or through a targeted advertisement, and offered a slightly better interest rate on their money - enough to get their attention but not so much that it will cause alarm.

Police say if you or someone you know is looking into term deposits, they urge caution and offer the following advice: