Prominent Canberra lawyer Ben Aulich was "absolutely concerned" about being heard allegedly conspiring to launder money, a court has been told.
People attending meetings at the centre of the case against Aulich were often required to leave their phones outside, prosecutor Mark Tedeschi KC alleged on Monday.
"There were various times Mr Aulich expressed concerns about being overheard by police," he said.
"The prosecution points to those concerns by Mr Aulich as being evidence of his guilty knowledge that he knew perfectly well what he was doing was quite against the law."
The case
Aulich and accountant Michael Papandrea are accused of conspiring in 2020 to help an undercover police officer buy a supermarket to launder $100,000 cash per month purported to be from the illegal import of cigarettes.
The two men claim police entrapment.
Both have pleaded not guilty to a charge of conspiracy to commit money laundering. Aulich denies a further charge of recruiting Papandrea to engage in criminal activity.
On Monday, the pair faced the ACT Magistrates Court for a contested committal hearing, with special magistrate Sean Richter set to decide if there is sufficient evidence for the case to be sent for trial in a higher court.
Opening proceedings, Mr Tedeschi described the case as having a long history and said he would not be surprised if it was the court's oldest outstanding committal matter.
The prosecutor said Aulich warned the undercover officer he was himself "probably being watched by police".
"What would appear to be very simple meetings to advise his client about the possible purchase of a business are in reality a setting up of a scheme to launder," Mr Tedeschi said.
"And that's why he was so concerned with not being overheard by police."
The undercover police officer, calling himself "Alex Torosian" and posing as a client of Aulich's law firm, recorded some of the meetings in question.
Police allege Aulich and Papandrea conspired with that man to buy the supermarket for the purpose of laundering a "wardrobe full of f---ing cash" from the fictitious illegal tobacco venture.
It's alleged other businesses were considered, including an embroidery shop, ice creamery, art gallery and restaurant.
Aulich allegedly wrote "Breaking Bad" on a piece of paper relating to a car wash.
'Classic case of entrapment'
Barrister David Campbell SC, representing Aulich, told the court for conspiracy to be made out there had to be an agreement reached not simply to assist but to carry out the illegal object of the agreement.
"It is at least open on the evidence that neither Mr Aulich nor Mr Papandrea could care less what Mr Torosian did with the business once he purchased it," he said.
Mr Campbell argued all criminal acts, if ever to have occured, "would be performed by [the undercover officer] and it was fictional in its basis".
"This is a classic case of entrapment from its outset to its end," he said.
The barrister said if the theoretical business had ever been created and laundered illegal cash, the accused men could then possibly have been charged with aiding and abetting a crime. But that was not the case.
Mr Campbell argued Aulich and Papandrea could not be found to be conspiring because any agreement had to be made with the undercover officer, who is not named as a conspirator in the laid charges.
"[The undercover officer] is the hub of the wheel," the barrister said.
In written submissions, Aulich's lawyers argued police recordings demonstrated the man had no intention of being involved in money laundering or conspiracy to launder.
"I can't be involved any further ... this is as far as I can take it ... I couldn't set up stuff that I know is illegal ... I'm not assisting you. Just advising you in hypothetical way," Aulich said in the recordings.
Summarising what he understood to be the defence case, the magistrate said: "Your client has given advice and effectively said 'off you go, do whatever you want and I'm not involved in that side of it'."
'Sole purpose' to launder
In reply, the prosecutor said the police sting carried out over several months was not entrapment because the accused men were the ones who suggested purchasing the supermarket.
"[The undercover agent] presented with the problem he had this cash from the illegal sale of cigarettes and it was Mr Aulich and Mr Papandrea who came up with the solution," Mr Tedeschi said.
"This was not a case of Mr Aulich and Mr Papandrea helping a client and then washing their hands of it. This is a case where the sole purpose was setting him up with a business so he could launder money."
Papandrea allegedly told "Torosian" how to generate fake cash in a business, including manipulating sale numbers.
"He gives him the nuts and bolts of how it's going to be done," the prosecutor said, referring to an undercover recording.
Mr Richter reserved his decision until August.
