McCarthy Towers

Last week’s historical judgement by the Colombo High Court Judge M. K. M. Patabendige with regard to money laundering, monies specially earned from drug peddling, exposed a massive scale drug mafia which had been operating despite many security units claiming to be on alert and fighting day and night combat such illegal activities.

The 115-page judgement probably marked the first in the country’s judicial history where ill-gotten wealth was completely confiscated. A High Court trial stretching for nearly 13 years provided details of how multimillions of transactions were carried out by those involved in drug peddling and properties were brought in the heart of financial capital, Colombo while maintaining lockers and safes in leading banks to secure moneys, gold and jewellery apart from buying and using multiple luxury vehicles. All these super luxuries have been enjoyed by people in this illegal trade and they have maintained an expensive lifestyle without officially and legally earning the monies they possess.

Seagull Apartments

The BMW vehicle mentioned in the story

Some of the jewellery that was confiscated

The convicts in the case were Gampola Vidanage Samantha Kumara alias ‘Wele Suda’, one of the leading drug kingpins in the country, his wife Piliduwa Bogahawattage Gayani Priyadarshani and her cousin Kambare Arachchige Wasanthi Wasundara alias ‘Nadee’. Indicted by the Attorney General on 57 counts, the accused were sentenced to 73 years rigorous imprisonment on various charges and the prison term is to be spent concurrently within an 8 years. The conviction on the second accused Samantha Kumara follows his earlier sentence, a death penalty for drug peddling. All three accused were convicted for committing offences under the Prevention of Money Laundering Act.

“The charges framed against these accused were for laundering monies earned from drug peddling. This fact could not be taken lightly. Even though the offences have been committed by the accused in their personal capacities, when imposing punishments it should be considered how these offences have affected the society on the whole. When considering the massive wealth and property amassed by the accused, it is clearly evident that to earn such a huge amount of money, one should carry out a mass scale drug trafficking operation. Accordingly, amassing such a huge wealth from a drug peddling operation of this scale also means causing a huge damage to the entire society and specially an irreparable damage to the youth and the younger generation. The punishments should be imposed in proportion to the damage caused to the society,” Judge Patabendige reiterated.

Samantha Kumara and wife Priyadharshani

Delivering the judgement, the court imposed heavy fines on the convicts and also ordered the confiscation of all ill-gotten wealth, funds, properties, including gold jewellery, which has been accumulated through drug peddling.

In total, the court imposed a fine of Rs. 220 million on the three accused. The amount goes down in the country’s judicial history as one of the largest fines imposed for offences committed under the Money Laundering Act. The main accused in the case Gayani Priyadarshani alias Suji, the wife of drug kingpin Wele Suda was convicted on 18 out of a total of 55 charges while Wele Suda was found guilty on four counts. The third accused, a relative named Wasundara, was found guilty on two counts.

Assets confiscated 

The confiscated assets included a BMW vehicle valued at Rs. 4.45 million, a Prado Jeep valued at Rs. 6.6 million, a Discovery Jeep valued at Rs. 4.5 million, four properties, an apartment at Citadel Residencies located on Bagatelle Road, an partment at Royal Park, Rs. 18 million deposited in a safe locker, 2,601 grams of gold stored in a safe locker and furniture valued at Rs. 3.6 million. However the present value of all these wealth, properties and vehicles are more than double as the given valuations were done according to the rates applicable in 2012, the year the case was framed.

The laundering of wealth earned from drug peddling had been in multiple ways using renowned banks and properties of leading property developers. According to the evidence, the first accused using her ID card number 798194640 V had opened an account at Nation Trust Bank. According to the bank documentation done to open the accounts, two addresses at Madiwela in Kotte and at Pelanwatte in Pannipitiya had been indicated.

Wele Suda’s wife and cousin

Her profession has been recorded as doing business. And it has been indicated that she was running a restaurant. The account that was opened with Rs. 200,000 on June 27, 2011 was credited with deposits worth several millions with regular transactions done within a short period of one or two months. And some of the documents related to the deposits were not available in the bank. For instance Rs. 300,000 was sent to the account on August 26 while another Rs. 100,000 had been deposited, but documents relating to these transactions were not available. On July 5, Rs. 713,520 had been deposited by the third accused K. E. W. Wasundara and she had continued to deposit funds throughout the same month. They included Rs 400,000 on July 8, Rs. 550,000 on July 10, Rs. 650,000 on July 11, Rs. 1,043,900 on July 14, Rs. 1.2 million on July 16, Rs. 600,000 on July 19, Rs. 1.2 million on July 24 and Rs. 1,360,000 on July 28. In addition, one N. Buddhika Wijesinghe and another person by the name of H. Y. Jayantha Harishchandra had deposited Rs. 680,000 on September 7. The High Court judgement revealed that the third accused Wasundara had deposited Rs. 5.1 million to her cousin’s, the first accused, bank account within a short period of 14 days and these monies had been earned from drug trafficking.

The charges framed against these accused were for laundering monies earned from drug peddling. This fact could not be taken lightly. Even though the offences have been committed by the accused in their personal capacities, when imposing punishments it should be considered how these offences have affected the society on the whole. When considering the massive wealth and property amassed by the accused, it is clearly evident that to earn such a huge amount of money, one should carry out a mass scale drug trafficking operation

Colombo High Court Judge,
M. K. M. Patabendige

Another witness, former Manager of People’s Bank Nugegoda, giving evidence had stated that during the years 2011 and 2012 the first accused had obtained a bank safe facility and on a court order a group of officers from the Criminal Investigation Department (CID) had informed that it was necessary to check the particular safe. To open such a safe, two keys; one by the safe owner, the first accused and the other by the bank had been needed. However as the accused had not brought her the key, the safe had been opened with her written permission and the CID officials had recovered Rs. 18.2 million and 2602 grams of gold jewellery, including several necklaces, bracelets, bangles, a pendant, gold coins, rings and earrings.

When buying an apartment from The Citadel at Bagatalle Road, the accused Gayani Priyadarshani, had stated that she had coconut estates and she together with her mother were operating a financial company. According to the evidence given by the witness, Saroja Devi Paskaran, she had come to know Priyadarshani through a broker and she had come and rented out a house at Seagull Apartment at Bauddhaloka Mawatha. Around 2008 the accused Priyadarshani has informed her intention to buy the said property and had agreed to buy it at Rs. 14 million and had paid around Rs. 1 million each month. However, later, she had informed that she needs a bigger house and had taken her to see a house at an apartment at Bagathale road. Priyadarshani had come to see the house with the second accused Gampola Vidanage Samantha Kumara whom she introduced as her husband. The couple had been happy with the house and bought it for Rs. 20 million and the total amount had been paid in cash and in one instalment. However, except inspecting the house before buying it, the second accused, Wele Suda, had not got himself involved in any financial transaction that involved his wife, the first accused.

Wele Suda leaving court after the verdict

In addition to this property, the first accused also had bought a property at McCarthy Towers Apartment at Rs. 18 million. The original owner of that property Roshani Sakunthala Balapatabendi, who appeared before the High Court trial as a witness, had stated that part of the money was paid in cash and it had taken her a long time to count the notes. The rest has been transferred from Nation Trust Bank.

The witness also has revealed that she handled supplying furniture and curtains to the house at a cost of Rs. 2. 49 million. Later she had done the interior designing for two houses at Seagull Apartment in Colombo 3 which cost Rs. 2, 209,000 and Rs. 1, 864,000 respectively.

In addition, the first accused had bought several vehicles and some of them were bought using vehicle passes issued to government servants.

During the trial it had also been found that the first and third accused had made regular visits to 2000 Plaza Residencies in Jayawardenapura Kotte and drug trafficking operation carried out by the second accused Wele Suda was run from this place. During a search operation at 2000 Plaza, the third accused and another five suspects had been arrested with 500 grams of heroin. There are two High Court trials being heard featuring the third accused. In addition, on April 25, 2012 Rs. 9,071,680 was recovered from 2000 Plaza Residences. According to the evidence, the value of the property owned by the first accused was worth at Rs. 185 million. In addition it was transpired that various properties, including 153 perch land in Kahathuduwa, a multi-storey house in Pannipitiya, a house at Madiwela, a hotel in Nuwara Eliya were sold to another party.

Investigations revealed that the first accused had not been employed in a private company or state institute, not held the post of director as an employee and not been a tax contributor.

Dealings with a vehicle broker 

In the High court trial, a witness by the name of Sunil Shantha, who had worked as a vehicle broker in 2010, had given evidence and stated that he had sold a Prado Land cruiser- bearing the number KH-5595 at a price of Rs 6 million- to a woman. He had said that he could not identify her. In addition, a witness by the name of Chandra Rajapaksa, a vehicle businessman, giving evidence before the trial, had stated that he had sold a vehicle bearing the no KC-1058- which was taken from Janashakthi Insurance Company at a cost of  Rs. 4,050,000- to the first accused.

Meanwhile, the former Manager of the Seylinco Savings Bank revealed that the accused named P. G. B. Priyadarshani had made several fixed deposits from 2008 to 2010 and they were Rs. one million, Rs. 744,150 and Rs. 500,000.

One of the houses that belonged to the accused

At the end of the trial, the accused had made statements from the accused box and the first accused Priyadarshani had denied the charges of money laundering framed against her. She had stated that some of the lands mentioned in the indictment were given by her husband’s (Wele Suda) father. She further said that the house at Bagatale Road had been bought from the earnings from a coconut estate which was operated by her and her mother-in-law. She also stated that the house at Seagull Residence was bought from the money given by her husband’s sister Nirmalee Pradipika Vithanage, who is an Australian citizen. Since she cannot buy properties to her name because of being a foreign national it was bought under her name. In the same manner, property at McCarthy Towers was also bought under her name. She had further said that the apartment at Royal Park belonged to her younger sister and since she was married to a foreigner at the time she was leaving the country it was written under her name.

Making her statement, Priyadarshani had said that she was operating an investment company by the name ‘Nalko Credit and Investment. She carried out a pawning and mortgage business keeping lands and properties, vehicles, jewellery and vehicles as guarantees. Some of these valuables were forfeited as the original owners couldn’t pay back monies obtained. She further said that the BMW vehicle was bought at a lower rate and sold at a higher price. Two vehicles, a Toyota Prado and a Discovery jeep, were brought by a friend of her husband’s father, who was working at the prison. He had informed that vehicles could be bought through tenders and could be sold at a higher prices. The jewellery that was in the bank safes were gifts received by their children and others were forfeited from her investment company. She also said that she had taken her mother-in-law to India to see her husband and when she was returning, she had used a different passport and that she was arrested at the airport.

The High Court judge, in his verdict, ruled that the second accused Wele Suda had left the country on April 7, 2011 and returned on September 15. He has again left on October 14, 2011. During that period his wife had left the country using a fake passport under the name “Prabha Kumari”. Judge Patabendige noted that according to the evidence of the witness the so called investment company that was said to have opened by the main accused was just a namesake company and was never in operation. The evidence had revealed that no transaction had taken place through the said company

In October 14, 2015 the second accused Gampola Vidanage Samantha Kumara alias ‘Wele Suda’ was imposed with the death penalty for drug trafficking.

The Attorney General had filed indictments in the High Court against ‘Wele Suda’, his wife Gayani Priyadarshani and his cousin Wasanthi Wasundara, alleging that they had committed a punishable offence under the Prevention of Money Laundering Act.

The indictment had been served on the accused on November 23, 2012 and as the second accused had gone missing, it was decided to hear the trial in his absence. However the accused, who was arrested in Pakistan and brought to Sri Lanka, was served the indictment on February 19, 2015. Representing the Attorney General, the prosecution was lead by Senior Deputy Solicitor General Sudarshana de Silva.