Authorities allege Luong has concealed money earned from illegal drugs and gambling by buying several legitimate businesses, a large home in Chestermere and several vehicles, and registering the property in the names of relatives and associates.
Through more than two years of covert observation — including wiretaps of Luong’s phone and listening devices planted in his office — police allege they obtained evidence showing Luong headed an illegal sports betting operation that accepted more than $10,000 in bets a day at its height and that he was involved in trafficking marijuana.
In Dec. 2010, investigators raided 11 locations in and around Calgary — mainly homes and businesses connected to Luong and family members.
Authorities obtained court orders preventing the sale or transfer of four homes, seven high-end vehicles and a Forest Lawn shopping mall, alleging all are proceeds of crime owned by Luong despite documentation listing others as the owners.
Detailed news link: not available anymore
Update from Fintrac from sometime back:
Details released in the money laundering investigation of Alberta businessman:Details concerning the investigation of a businessman in Calgary, Alberta, were revealed by the Calgary Herald on November 14th following the release of recently unsealed court documents. Dung Kien Luong is under investigation for his alleged involvement in drug trafficking, illegal gambling, and money laundering that police suspect began in 2003. TheCalgary Herald reported that police are now examining Dung Kien Luong’s financial records, as investigators allege Luong and his family purposely created a complicated network of financial transactions to conceal illegal loans and money earned from the sale of drugs and gambling. Throughout the investigation, known as “Project Kwadrant,” evidence was obtained through wiretapping Luong’s home and office as well as searching through his trash. One search revealed a legal letter written to the owner of a spa business demanding repayment of a $150,000 loan to Luong’s nephew, Beer Luong, who was a college student when he allegedly provided the loan. Further investigation revealed two promissory notes held by Beer Luong, one for $150,000 secured against the spa owner’s home and a $250,000 note tied to another property. As a recipient of student loans himself, Beer Luong denied to the police his ability to lend anyone $400,000. Investigators traced the $150,000 loan to a $100,000 cheque written by his uncle, Dung Kien Luong, and a $50,000 cheque written by his brother, Bao Luong. Investigators allege that the discrepancies between Dung Kien Luong’s reported annual income ($23,000 between the years of 2003 and 2007), large cash deposits ranging from $50,000 to $205,000 and the substantial loans traced back to him are evidence that Luong earned large sums of money through illegal sources and attempted to conceal its origin. Investigators allege that one such source was an illegal gambling operation headed by Luong, which at its height exceeded $10,000 in bets per day, while another source was his suspected involvement in marijuana trafficking. Luong allegedly concealed the profits from these illicit businesses by purchasing property and registering the assets in the names of relatives and associates. Police believe the assets include four homes, seven high-end vehicles and a local shopping mall, all of which have documentation listing other owners. In August 2010, a search of the butcher shop listed as the property of Luong’s sister, Mai Luong, and her son revealed several loans allegedly made by Dung Kien Luong totalling $625,000, with accrued interest of over $250,000 at an illegal rate of 120%. Police have yet to lay any charges under their investigation as they have eight years worth of financial transactions belonging to Luong, several family members and related businesses to examine.
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