Posts Tagged With Money Laundering

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Acting Principal Deputy Assistant Attorney General Trevor N. McFadden of the Justice Department’s Criminal Division Speaks at ACI’s 19th Annual Conference on Foreign Corrupt Practices Act

On April 20, 2017, Acting Principal Deputy Assistant Attorney General Trevor N. McFadden spoke at the American Conference Institute (“ACI”) about the Department of Justice’s continued focus on white collar crime.  Affirming the Department’s commitment, McFadden said, “While we are boosting our focus on violent crime prosecutions, the Criminal Division is fully engaged in combating crime in all its forms, and no matter what color collar its perpetrators wear.  McFadden highlighted the work of the ... Continue Reading

Four Individuals Arrested for Multi-Million Dollar Securities Fraud and Money Laundering Schemes

On April 14, 2017, four individuals were arrested for their involvement in a stock manipulation scheme involve BioCube, Inc. and their efforts to launder approximately $2 million in illegal proceeds.  The four individuals are Chris Messalas, Boris Rubizhevky, Michael Garnick and Dimitrios Argyros.  Messalas, a former securities brokers, Rubizhevky, the former Chief Executive Officer of BioCube, and Garnick, an attorney, were charged with securities fraud conspiracy.  In particular, they are charged with defrauding potential BioCube ... Continue Reading

Former Chairman and CEO of Credit Union and Operator of Unlawful Bitcoin Exchange Convicted at Trial in Connection with Bribery and Fraud Scheme

On March 17, 2017, Trevon Gross, the former Chairman and CEO of HOPE FCU, a federal credit union in New Jersey with primarily low-income members, and Yuri Lebedev, a former employee of, an unlawful internet-based Bitcoin exchange, were found guilty after a four-week jury trial, in connection with a bribery scheme to gain control of HOPE FCU and a fraud scheme to evade detection of  Between 2013 and July 2015, Lebedev and his ... Continue Reading

Former Attorney and His Father Charged in Connection with $13 Million Ponzi Scheme

On February 16, 2017, Michael Kwasnik, a former New Jersey attorney, and his father, William Kwasnik, were indicted in connection with a $13 million Ponzi scheme.  Michael Kwasnik previously owned the law firm Kwasnik, Rodio, Kanowitz & Buckley P.C., and its successor firm Kwasnik, Kanowitz and Associates P.C., which had offices in New Jersey and Pennsylvania.  William Kwasnik owned an insurance company, Abby Grant, in New Jersey.  According to documents filed in the case and ... Continue Reading

Architect of Offshore Fraud Haven and Orchestrator of More than 40 Pump and Dump Schemes Sentenced to 6 and 12 Years in Prison, Respectively, for Executing a $250 Million Money Laundering Scheme

On February 6, 2017, Robert Bandfield, a U.S. citizen and resident of Belize, and Gregg. R. Mulholland, a dual U.S. and Canadian citizen, were sentenced to 6 and 12 years in prison, respectively, after each pled guilty to a $250 million money laundering scheme.  According to court documents, Bandfield, Mulholland, and their co-conspirators engaged in three interrelated schemes between 2009 and 2014:  (1) to fraudulently induce U.S. investors to purchase thinly-traded public companies in order ... Continue Reading

Western Union Admits Anti-Money Laundering and Consumer Fraud Violations, Forfeits $586 Million in Settlement with Justice Department and Federal Trade Commission

On January 19, 2017, the Western Union Company entered into a deferred prosecution agreement and agreed to forfeit $586 million in connection with a two-count criminal information charging the company with failing to maintain an effective anti-money laundering (“AML”) program and aiding and abetting wire fraud.  According to admissions in the agreement, between 2004 and 2012, Western Union violated the Bank Secrecy Act and anti-fraud statutes by processing transactions for Western Union agents and others ... Continue Reading

Man Charged with Massive Computer Hacking Crimes against U.S. Financial Institutions Arrested

On December 14, 2016, Joshua Samuel Aaron, a United States citizen who had been residing in Russia, was arrested at John F. Kennedy International Airport in connection with a massive computer hacking scheme.  Aaron and Gery Shalon were charged in November 2015 with orchestrating hacking crimes against U.S. financial institutions, brokerage firms, and financial news publishers.  According to the superseding indictment, Aaron and Shalon stole personal information from more than 100 million customers of the ... Continue Reading

President and CEO of Florida-Based Financial Firm Guilty of Money Laundering and Fraud in $179 Million Sham Loan Scheme

On November 18, 2016, Timothy G. Fisher, president and chief operating officer of First Farmers Financial LLC, a Florida-based financial firm, pled guilty to one count of money laundering in connection with the sale of $179 million in sham loans to a Milwaukee investment company.  On December 7, 2016, Nikesh A. Patel, First Farmers’ former CEO, pled guilty to five counts of wire fraud in connection with the same conduct.  According to their plea agreements, ... Continue Reading

Former Finance Executive Andrew Caspersen Sentenced to Four Years in Prison for Defrauding Investors of Over $38 Million and Misappropriating Over $8 Million from His Former Employer

On November 4, 2016, Andrew Caspersen was sentenced in the SDNY to four years in prison for defrauding investors of over $38 million and misappropriating $8 million from Park Hill Group, his former employer.  Caspersen engaged in a Ponzi-like scheme to defraud investors, falsely claiming that their funds would be used to make secured loans to private equity firms that would earn an annual rate of return of 15 to 20 percent.  Investors wired a ... Continue Reading

Man Arrested for Scheme to Steal Over $1.5 Million from Financial Institution

On October 26, 2016, Dwayne C. Hans was arrested on wire fraud, computer fraud and money laundering charges.  According to the complaint, Hans misappropriated $134,000 from the corporate bank accounts of a U.S. financial institution by posing as an authorized representative of the institution.   Hans also accessed a website operated by the U.S. General Services Administration, where information about companies that provide services to the federal government is stored.  Hans replaced the bank account information ... Continue Reading

Owner of Offshore Brokerage Firm Pleads Guilty to Conspiracy to Commit Money Laundering

On October 21, 2016, Canadian citizen and permanent resident of Costa Rica Michael Randles pled guilty to conspiracy to commit money laundering.  Randles and co-conspirator Harold Bailey Gallison II controlled and operated Moneyline Brokers, an offshore brokerage company located in Costa Rica.  The company traded securities, especially microcap or “penny stocks,” through United States and offshore accounts.  According to the plea agreement, some of these trades were made in connection with market manipulation and securities ... Continue Reading

Principal Deputy Assistant Attorney General Caroline D. Ciraolo Delivers Remarks Regarding Offshore Tax Enforcement Efforts

On August 17, Principal Deputy Assistant Attorney General Caroline D. Ciraolo delivered remarks at the Panama Bankers Association Anti-Money Laundering Conference on the Tax Division’s offshore tax enforcement efforts.  Ciraolo stated that offshore tax enforcement is one of the Tax Division’s highest priorities.  She explained that the one role of the Tax Division is to petition the federal courts to enforce IRS requests for records related to taxpayers’ offshore assets and activities, sometimes through “John ... Continue Reading

Owner of Most-Visited Illegal File-Sharing Website Charged with Criminal Copyright Infringement

On July 30, Zachary T. Fardon, U.S. Attorney for the Northern District of Illinois, announced criminal copyright infringement charges brought against Ukrainian citizen Artem Vaulin, who allegedly owned and operated Kickass Torrents, or KAT, the world’s most-visited illegal file-sharing website.  Vaulin’s website allegedly enabled users to illegally reproduce and distribute hundreds of millions of copies of films, video games, television shows and music valued at more than $1 billion.  Fardon announced that Vaulin had been ... Continue Reading

United States Seeks to Recover more than $1 Billion Obtained from Corruption Involving Malaysian Sovereign Wealth Fund

On July 20, Attorney General Lynch and Assistant Attorney General Leslie R. Caldwell announced the filing of civil forfeiture complaints seeking the forfeiture and recovery of assets associated with an international money laundering conspiracy.  The members of the conspiracy are alleged to be officials of 1Malaysia Development Berhad (“1MDB”), their relatives, and associates, and they are alleged to have misappropriated more than $3.5 billion in funds belonging to 1MDB from 2009 through 2015.  1MDB was ... Continue Reading

New Jersey Clinical Lab at Center of Largest Physician Bribery Case Pleads Guilty

On June 28, Biodiagnostic Laboratory Services, LLC (“BLS”), a New Jersey clinical lab at the center of a long-running and elaborate test referral scheme, pled guilty in federal court to conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act and one count of conspiracy to commit money laundering.  BLS played a central role in an enterprise that took millions of dollars in bribes and resulted in more than $100 million in payments to ... Continue Reading

National Healthcare Fraud Takedown Results in Charges Against 301 Individuals for Approximately $900 Million in False Billing

On June 22, the Criminal Division of the DOJ’s Medicare Fraud Strike Force team, in conjunction with U.S. Attorneys’ Offices nationwide and several other enforcement agencies, announced the largest coordinated takedown in history.  This sweep involved 36 federal districts and charges against 301 individuals, including doctors, nurses, and other licensed medical professionals.  The government has charged these individuals with various healthcare fraud-related crimes, such as conspiracy to commit healthcare fraud, violations of anti-kickback statutes, money ... Continue Reading

Philadelphia Congressman and Associates Convicted in Corruption Case

On June 21, a jury convicted Congressman Chaka Fattah, Sr. of participating in a racketeering conspiracy, as well as committing bribery, mail and wire fraud, money laundering, and honest services fraud.  Evidence presented at trial showed that Fattah and his associates misappropriated both federal and campaign funds for personal gain.  Fattah took bribes in exchange for attempting to secure an ambassadorship, used campaign funds to pay his son’s student loan debt, and attempted to eliminate ... Continue Reading

Justice Department Proposes Legislation to Advance Anti-Corruption Efforts

On May 5, DOJ announced several proposals it will submit to Congress to amend federal corruption laws focusing on international corrupt actions and federal program bribery.  The Department announced a number of proposals relating to transnational corruption, including proposals to expand the scope of money laundering statutes to permit prosecution of any act of foreign corruption that would be money laundering if committed domestically; permit administrative subpoenas in money laundering cases; increase the power to ... Continue Reading

Former Hedge Fund Manager Sentenced to 15 Years’ Imprisonment for Wire Fraud, Money Laundering, Identity Theft, and Contempt of Court

On April 7, James Murray, the sole member and investment advisor of the purported hedge fund Market Natural Trading, LLC, was sentenced to 15 years in prison after being convicted of 23 counts of wire fraud, money laundering, identity theft, and contempt of court.  The evidence showed that Murray falsely represented to investors that the hedge fund was audited; made other misrepresentations to banks and credit card companies that transacted with his firm; and violated ... Continue Reading

Pakistani Citizen Admits Laundering Millions from Massive Computer Hacking and Telecommunications Fraud Scheme

On February 11, Muhammad Sohail Qasmani, a Pakistani citizen formerly of Bangkok, Thailand, admitted laundering over $19.6 million on behalf of the perpetrators of a massive international computer hacking and telecommunications fraud scheme. This scheme, allegedly led by Noor Aziz of Karachi, Pakistan, involved unauthorized access to the computer systems—commonly known as PBX systems—that ran the internal telephone networks of numerous businesses and organizations in the United States. Foreign-based hackers targeted the telephone systems of ... Continue Reading

Founder of Global Digital Currency Business Pleads Guilty to Money Laundering

On January 29, the founder of Liberty Reserve, Arthur Budovsky, pled guilty to running a money laundering scheme. According to the government, Budovsky designed Liberty Reserve as an online money transfer system that would allow individuals to conduct illegal transactions anonymously and launder proceeds of crime.  Liberty Reserve, which has since been shut down, had more than five million user accounts worldwide and processed tens of millions of transactions through its system.  Budovsky admitted to ... Continue Reading

Casino Operator Agrees to Plead Guilty to Violating Anti-Money Laundering Statutes

On January 22, the Normandie Club, the partnership operating the Normandie Casino in Gardena, California, agreed to plead guilty to failing to maintain an effective anti-money laundering program and conspiring to avoid reporting certain large cash transactions, in violation of the Bank Secrecy Act. The casino avoided reporting transactions relating to certain gamblers by submitting Currency Transaction Reports that named gambling promoters instead of the gambler, structured transactions so that they appeared less than $10,000 ... Continue Reading

Former Russian Nuclear Energy Official Sentenced to 48 Months in Prison for Money Laundering Conspiracy Involving FCPA Violations

On December 15, Vadim Mikerin, a former Russian official residing in Maryland, was sentenced to 48 months in prison for conspiracy to commit money laundering in connection with his role in arranging more than $2 million in corrupt payments to influence the awarding of contracts with a Russian state-owned nuclear energy corporation.  Mikerin was the director of the Pan American Department of JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation and the ... Continue Reading

Former Head of Offshore Brokerage Pleads Guilty to Conspiracy to Commit International Stock Fraud and Money Laundering Scams

On December 10, Harold Bailey Gallison II, 58, of Valley Center, California, the former head of an offshore brokerage and money laundering platform known as Moneyline, pleaded guilty to two counts of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering in connection with an international “pump and dump” scheme involving stocks traded on the over-the-counter (OTC) market. In entering his guilty plea, Gallison admitted that he conspired to ... Continue Reading