A convicted police killer operated a major cigarette smuggling racket after his release from jail, it was claimed in the High Court.
Seamus Mullan also allegedly used mortgage fraud to buy two houses in Co Derry, a judge heard.
The Serious Organised Crime Agency (SOCA) is seeking to confiscate the properties and a bank account, claiming they are the proceeds of crime.
Its application for a civil recovery order got under way following a failed attempt to have the civil case dismissed.
Mullan's lawyer had claimed he was unable to give proper instructions due to a head injury suffered in 2008.
The 57-year-old, formerly of Lisnascreghog Road, Garvagh, was released from prison 10 years earlier under the Good Friday Agreement. He had been jailed for the murder of Willis Agnew, an off-duty RUC officer shot by the IRA in June 1985.
The court heard Mullan has allegedly since become involved in large-scale distribution of counterfeit and contraband tobacco.
Details of a cigarette seizure at his farm in 2003 were outlined in court, with Mullan telling police at the time he knew nothing about the haul.
The hearing continues.