At the Border: Card skimmers, forged identity documents, and ammunition

There’s never a dull day at the border, and the New Zealand Customs Service has been busy. Separate investigations carried out in recent months have uncovered a passport forgery ring, card skimming device smuggling, and more.

Three sentenced in forgery ring investigation

As a result of a Customs operation, a Whanganui business owner and two staff have been sentenced in relation to a sophisticated forgery ring which produced false passports and identity documents and sold them worldwide.

Appearing in the Whanganui District Court on 13 July, 46-year-old Anthony Magnoli, the sole Director of Magnoli Props was sentenced to three- months community detention and $10,000 fine. His two staff, 38-yearold Kolbe Hungerford-Morgan was sentenced to two-months’ community detention and $10,000 fine, and 22-year-old Xenia Hungerford-Morgan was discharged without conviction due to the minor administrative role she had.

The defendants each faced two representative charges of knowingly exporting goods for dishonest purposes under the Customs and Excise Act 2018, and two charges of unauthorised use of the name and emblem of the United Nations under the Flags, Emblems and Name Protection Act 1981.

The charges resulted from a Customs’ investigation, codenamed Operation Eldorado, which began in November 2019 in response to information received from overseas enforcement agencies, including the US Department of Homeland Security, about false identity documents being sold and exported from New Zealand.

Customs’ investigations identified the illegal activity was being carried out by a Wanganui based company, Magnoli Props, and executed a search warrant at the business, which operated from Magnoli’s home.

Investigators seized a wide range of equipment, tools and material needed for manufacturing false identity documents, along with partially finished and fully finished identity documents ready for export.

The fake documents included passports, drivers’ licences, and government official ID cards, as well as United Nations’ identification cards and United Nations’ diplomatic passports.

A review of business records revealed numerous customers’ orders which often requested multiple passports made in different nationalities but under one person’s name.

The made-to-order online business supplied buyers from across the globe including the United States of America, Canada, the United Kingdom, Japan, and Australia.

Nigel Barnes, Chief Customs Officer Fraud and Prohibition, noted that the identity documents which Magnoli manufactured and exported were of extremely high quality.

“Overseas law enforcement found a number of the false documents at their borders, or in the hands of criminals using them for illegal activities including loan fraud.”

Jail for smuggling card skimming equipment

A Customs investigation has resulted in the sentencing of an Auckland man to 25 months’ prison for smuggling card skimming equipment.

40 year old Rimamotu Tiavare appeared in Auckland District Court on 26 July and was convicted on one charge for knowingly importing goods for dishonest purposes under the Customs and Excise Act 2018. The sentence also reflected active Police charges including using forged documents, money laundering and accessing a computer system for dishonest purposes.

Customs officers intercepted an air freight package in May 2022 containing a car stereo, which concealed two card skimming devices sent from the US.

Further investigations led to a search warrant at his home address where evidence including cash, notes with card skimming instructions, and phones that had been used to search for ATM locations were found.

Card skimming typically involves inserting a device into ATMs that can read data contained on card magnetic strips, accessing credit cards details.

“Criminals also attach pinhole cameras hidden around the ATM to obtain the PIN number of the card,” said Nigel Barnes, Chief Customs Officer - Fraud and Prohibition. “The stolen data is later cloned onto blank cards, which are then used by the offenders at ATMs to withdraw money, or sold to overseas third parties for profit.”

“In this case, the insert devices found by Customs were later found to be harder to detect by banks and ATM users.

Card skimming is a highly sophisticated way for criminals to steal money from their victims, which often goes unnoticed until it’s too late. Customs work closely with law enforcement and industry partners to prevent this type of illegal activity and we remain committed to protecting our communities from being scammed.”

Drugs, cars and ammunition seized

According to a 23 June report, a Police and Customs operation across Auckland has uncovered an alleged drug importation and money laundering operation valued at more than $60 million.

Four people have been arrested and vehicles, jewellery, ammunition, and cash totalling around $1 million have been seized following a sixmonth joint investigation. Operation Chartruese, targeting an organised criminal group alleged to have been involved in the importation, sale and supply of Methamphetamine and MDMA as well as precursor chemicals and the laundering of the funds generated.

Officers from the Police Financial Crime Group, National Organised Crime Group, and the Waitematā District and Customs executed 20 search warrants across Henderson, Albany, Dairy Flat, Te Atatū, Auckland City, Mt Roskill, Massey, Forest Hill, Riverhead, Ranui, Morningside and Bayview.

Police seized eight vehicles, two jet skis on trailers, 19 watches, ammunition, shotgun cartridges, imitation firearms, a Kimar pistol, 3.5 kilograms of methamphetamine, and about $100,000 in cash.

Four men, ranging in age from 37-47, were facing charges including participating in organised crime groups, importing methamphetamine, MDMA and precursors, supplying methamphetamine, MDMA and precursors and money laundering.