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1st individuals sentenced under criminal cartel laws
The Federal Court has sentenced four individuals to suspended prison terms and imposed a $1 million fine on Sydney money remittance business Vina Money. They are the first individuals to be sentenced under criminal cartel laws since they were created in 2009.
Jess Feyder
The prosecution was conducted by the Commonwealth Director of Public Prosecutions (CDPP), following a joint investigation by the Australian Competition and Consumer Commission (ACCC) and the Australian Federal Police.
Four individuals, who were linked to Vina Money and its competitor, money remittance business Hong Vina, pleaded guilty earlier this year.
The CDPP has withdrawn a remaining criminal cartel charge against a fifth individual, a 33-year-old man from Sydney.
“This is a significant milestone that follows a joint investigation between the ACCC and the Australian Federal Police and a successful prosecution by the CDPP,” said ACCC chair Gina Cass-Gottlieb.
In June 2022, the Federal Court:
- Imposed a $1 million fine on Vina Money;
- Sentenced former company secretary and director of Vina Money, Van Ngoc Le, to imprisonment of two years and six months;
- Sentenced former company secretary and director of Vina Money, Tony Le, to imprisonment of nine months;
- Sentenced former company secretary and director of Hong Vina, Khai Van Tran, to imprisonment of one year and seven months; and
- Sentenced former shareholder of Hong Vina, Thi Huong Nguyen, to imprisonment of two years and four months.
During sentencing, Justice Abraham highlighted “the need to deter those who may see possible penalty as a cost of doing business”.
She noted that the conduct, at least in relation to the fixing of the exchange rates, was deliberate, took place over a sustained period, had a degree of sophistication and was directed at financial gain.
Vina Money and Hong Vina operated competing money remittance businesses in Footscray, Victoria, and in Cabramatta in NSW.
Both businesses used a large Vietnamese commercial bank (Sacombank) to make payments in Vietnam on their behalf.
The court heard evidence of communications between the two businesses and Sacombank, which encouraged Vina Money and Hong Vina to agree on exchange rates instead of competing — this arrangement continued for several years.
The businesses also agreed to stop discounting their fees and charged full transaction fees in their branches.
“Cartel behaviour, including price fixing, means consumers pay more than they would if there was fair competition, and other businesses are deprived of a level playing field,” said Ms Cass-Gottlieb.
“We remain focused on deterring, detecting and dismantling cartels that have the potential to harm Australian consumers and competition in the economy.
“Enforcing cartel laws remains an enduring priority for the ACCC and we will continue referring serious cases of alleged cartel conduct to the CDPP for consideration for criminal prosecution.
“This case also shows that the links between the ACCC and AFP are increasing our effectiveness and ability to enforce cartel provisions.”
