Linegar, R. v

Offences of possessing or converting criminal property under the Proceeds of Crime Act 2002 are independent of the antecedent criminal conduct that generated the property. The fact that property is the proceeds of an unlicensed credit business does not make money-laundering offences subordinate to the licensing offence, nor require concurrent sentences.

Where the offences have distinct elements and mischiefs, consecutive sentences may properly reflect their separate criminality. A sentencing court must, however, confine sentence to the offences charged and the admitted basis of plea.

The appellant pleaded guilty at Southwark Crown Court to two counts of converting criminal property, three counts of possessing criminal property, and carrying on unlicensed personal credit agreements. The criminal property was admitted to be the proceeds of unlicensed money lending, rather than drug trafficking.

He received concurrent sentences of two years for the five Proceeds of Crime Act 2002 offences, consecutive to 15 months for the licensing offence, making three years and three months' imprisonment. He appealed against sentence with leave of the single judge.

The central issue was whether the proceeds offences were merely subordinate to the unlicensed-credit offence and therefore had to be sentenced concurrently with it.

1. Appeal dismissed. The total sentence of three years and three months was not manifestly excessive.

2. The court rejected the submission that the unlicensed-credit offence was the controlling or “anchor” offence and that the proceeds offences were therefore part and parcel of it. A charge for the antecedent unlicensed-credit activity was not required in order to charge possession or conversion of criminal property.

3. Possession of criminal property under section 329 and conversion of it under section 327 of the Proceeds of Crime Act 2002 are separate crimes with a separate mischief. Possession enables further criminal activity. Conversion, here by turning cash into a car and property, launders the proceeds and can conceal the underlying crime. The court approved the observation in Basra [2002] EWCA Crim 541 that possession of criminal property encourages and nourishes crime generally.

4. The offences were thus entirely independent of the offence of conducting an unlicensed credit business. Consecutive sentences were justified, and sentences of two years for the proceeds offences were proportionate despite the lower maximum applicable to the licensing offence.

5. The court accepted the basis of plea. Sentence could not reflect alleged threatening or racist debt-collection conduct, drug dealing, or other uncharged wrongdoing.

• Court of Appeal (Criminal Division): appeal against sentence dismissed in [2009] EWCA Crim 648.
• Crown Court at Southwark: on 19 November 2008, the appellant was sentenced after guilty pleas to offences under the Consumer Credit Act 1974 and the Proceeds of Crime Act 2002.