By JO-MARIE BROWN and NZPA
A group of New Zealanders has allegedly tried to con people into buying worthless Kuwaiti money stolen during the Gulf War.
Six men, including two Aucklanders, have been arrested and jointly charged with conspiring to engage in a money laundering transaction. The money involved - Kuwaiti
dinars - was allegedly worthless and New Zealanders were believed to have paid out at least $500,000.
Detective Sergeant Scott Steedman said around 365 million Kuwaiti dinars were stolen in 1990 by Iraqi troops who raided the Central Bank of Kuwait.
That currency issue, made up of long brown and beige-coloured notes, was then cancelled because of the large amounts missing.
The new currency was blue and looks quite different to the old notes. One valid Kuwaiti dinar was yesterday worth $NZ7.91.
"What we believe has happened is that after the money was taken during the war, it was stored in shipping or airfreight containers around the world for a number of years," Detective Sergeant Steedman said.
Some of the containers appeared to have been shipped to Australia.
Those arrested were an accountant, company director, tourist operator, businessman, car dealer, and a panelbeater.
It is alleged at least $500,000 was made from selling the dinars to New Zealanders.
"There's probably a lot that we don't know of yet," he said.
"People may have bought it and not realised, or not wanted to come forward to say they've been had."
Police first spotted the Kuwaiti dinars in 1999 when luggage was searched at Wellington International Airport.
The subsequent investigation involved phone-taps and culminated in simultaneous raids in Queenstown, Levin, New Plymouth, Wellington and Auckland on April 9.
Inquiries were continuing with Interpol and Australian Federal Police, Detective Sergeant Steedman said.
"Indications are that the money was stored in one of the Balkan countries ... which are pretty hard to get information out of."
Police fear more dinars could still be in circulation throughout the country.
The two Auckland men arrested will reappear in the North Shore and Auckland District Courts next month.
