FROM THE OFFICE OF PUBLIC AFFAIRS

May 14, 2004
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Asset Forfeiture Event Stresses Importance of International Law Enforcement Cooperation

Australia, Canada, Switzerland Receive Forfeited Assets for Assisting Investigations

The U.S. Department of the Treasury today joined with officials from the Australian, Canadian and Swiss embassies to share assets forfeited through cooperative law-enforcement actions.

U.S. law enforcement works closely with our international partners to combat crime worldwide. The U.S., pursuant to statutory authority, shares the proceeds of successful forfeiture actions with countries that made possible or substantially facilitated the forfeiture of assets.

"As we all know too well, financial crimes do not confine themselves to one country’s borders.  As terrorists and other criminals attempt to move and hide illicit financial assets around the world, one country’s forfeiture efforts, however effective and comprehensive, may not be enough to take the profit out of transnational crime," said Treasury Deputy Secretary Sam Bodman. "International cooperation is needed, and today we recognize and thank the Canadian, Australian, and Swiss governments for their support and assistance in several important asset forfeiture cases."

Joint law enforcement efforts among the U.S. and the Governments of Australia and Canada led to the arrest of Charles Hermanowski, who used his company Americable to defraud cable television networks of funds owed to them for providing programming to Americable customers. Hermanowski ultimately siphoned over $8 million dollars into his personal bank accounts. When he fled the U.S., the Royal Canadian Mounted Police (RCMP) provided surveillance and interviewed witnesses. Most significantly, the RCMP disseminated information through the fugitive alert system, which ultimately led to Hermanowski’s arrest in Australia

The Australian Federal Police (AFP) provided assistance in locating and arresting Mr. Hermanowski. Notably, the AFP assisted the U.S. in its extradition proceedings by attending various court appearances.

The efforts of the Canadians and Australians led to today’s sharing of over $1.2 million with each country.

The Government of Switzerland provided assistance in two separate cases, which resulted in asset forfeiture sharing of over $500,000. Investigations into the illegal activities of Michael Norton and his company Kona Kai Farms showed he imported inexpensive Central American Coffee and sold it as expensive Kona Coffee. During the course of the investigation, two Swiss bank accounts were discovered and linked to the illegal scheme. This forfeiture occurred as a result of the Government of Switzerland permitting Norton to voluntarily repatriate to the U.S. the illegal proceeds, in lieu of commencing its own forfeiture action.

The Swiss also played an important role in the IRS criminal investigation of drug trafficker Gary Waldon, which led to the forfeiture of proceeds from Mr. Waldon's illegal activity. 

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