MAN GOES ON TRIAL FOR MONEY-LAUNDERING

A man has gone on trial for money-laundering the proceeds of drug
dealing or other criminal activity, after pounds 105,000 was found in
the attic of his home. Mr Desmond McHugh told gardai he was holding
the money for his brother in law, Mr Mark Connor, whom he knew to be
"a robber". Mr McHugh (41), married, of Cherrywood Crescent, Clondal
has pleaded not guilty to handling pounds 95,785 and pounds 7,240
sterling on November 7th, 1996 knowing or believing it to be the
proceeds of Mr Connor's drugs dealing or other criminal activity.

Judge Dominic Lynch and the jury at Dublin Circuit Criminal Court were
told that gardai from the National Bureau of Fraud Investigation and
the National Bureau of Criminal Investigation were jointly involved in
the operation concerning the money.

Det Sgt Anthony Hughes told Mr Feargal Kavanagh, prosecuting, that Mr
McHugh's home was searched on November 7th, 1996 as a result of
confidential information. Mr McHugh made a statement in which he said
that about 12 months previously Mr Connor arrived home from England
and asked him to hold some money for him. Mr Connor handed him a
plastic bag which he "just threw into the attic".

Det Sgt Hughes said the defendant claimed Mr Connor arrived home from
England several times over the year. Mr Connor gave him bags each
time. He put them in the attic but never touched them again. Mr McHugh
said he initially didn't think it was drugs money he was holding.

Det Sgt Hughes said the defendant told how on one occasion Mr Connor
asked for a screwdriver to unscrew car door panels. He later saw 10
packets on the back seat and was sure they had drugs in them. He said
all he ever got from Mr Connor was pounds 100 one time for drinks.

Forensic scientist Ms Mary O'Connor told Mr Kavanagh she found minute
heroin traces in debris from two of the packages recovered from Mr
McHugh's attic.

The hearing continues.