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Money Laundering

This archive displays posts tagged as relevant to money laundering. You may also be interested in the following pages:

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May 27, 2021

Bank Julius Baier & Co. Ltd. (BJB), a Swiss bank with international operations, will pay $79 million in penalties and enter into a three-year deferred prosecution agreement to resolve a criminal investigation into the bank’s involvement in a money laundering conspiracy that fueled an international soccer bribery scheme.  BJB admitted that it conspired to launder over $36 million in bribes through the United States to soccer officials with FIFA and other federations, in furtherance of a scheme in which sports marketing companies bribed soccer officials in exchange for broadcasting rights to soccer matches.  BJB’s Anti-Money Laundering controls failed to detect or prevent the money laundering, despite knowing that certain client accounts were associated with international soccer, which was generally understood to involve high-corruption risks.  A BJB executive directed that the opening of these accounts be fast-tracked in the hope that the clients would provide lucrative business.  DOJ

May 19, 2021

Latisha Harron of North Carolina has been sentenced to over 14 years in prison and ordered to pay over $13 million in restitution after pleading guilty to charges of defrauding the North Carolina Medicaid Program, aggravated identity theft, and money laundering.  Together with husband Timothy Harron, the defendant scoured obituaries for recently deceased Medicaid recipients and billed Medicaid for up to a year of home health services that were allegedly provided to the deceased by her company, Agape Healthcare Services, Inc.  By concealing the fact that both Harrons were previously convicted felons, the defendant was able to obtain millions in reimbursements, which she then laundered into expenses such as business properties, a private jet, clothing and jewelry, and gym equipment.  NC AG

May 12, 2021

Registered broker-dealer GWFS Equities Inc. will pay a penalty of $1.5 million to settle allegations that it failed to respond appropriately when it detected external bad actors gaining, or attempting to gain, access to the retirement accounts of participants in the employer-sponsored retirement plans it serviced, including through the use of improperly obtained electronic login information, user names, email addresses, and passwords. There was no allegation that this personal identifying information was disclosed in a breach of GWFS systems. However, the bad actors used this information to request distributions from plan participant accounts. While GWFS detected and blocked many of these attempts, the SEC charged that GWFS failed to file suspicious activity reports, or filed incomplete SARs, with respect to the account takeovers. SEC

May 4, 2021

Alberto Orian Gonzalez-Delgado was sentenced to 210 months in prison after pleading guilty to conspiracy to commit health care fraud and wire fraud.  He is the last of eight individuals to be sentenced for a money laundering scheme in Florida and Michigan involving the use of nominee owners to fraudulently purchase home health agencies and then bill Medicare for services that were never provided to Medicare beneficiaries.  The defendants caused the payment of approximately $53 million in fraudulent claims.  DOJ

April 30, 2020

The owner of dog training school Universal K-9, Inc., Bradley Lane Croft, has been sentenced to nearly 10 years in prison for defrauding the Veteran Administration’s GI Bill program of more than $1.5 million in connection with 185 fraudulent claims relating to 132 veterans.  Croft had been found guilty of providing false information on instructor names, certifications, and training to the Texas Veterans Commission, laundering money, and submitting fraudulent income tax returns for 2016 and 2017.  USAO WDTX

When the Deli’s Not Just a Deli

Posted  04/28/21
By Sarah “Poppy” Alexander
share certificate
A market mystery recently caught the attention of financial journalists and the public more generally: a New Jersey deli that is seemingly never open and reports minimal profits is—on paper at least—worth $100 million after issuing public shares.  The shareholders are few, and mostly in China.  The owners are local (the revered wrestling coach) and not (a father-son investor duo with a history of shady...

Why FinCEN Should Quickly Establish Regulations for the New AML Whistleblower Program

Posted  04/9/21
Whistle on Wood
The nascent AML whistleblower program promises to boost enforcement in a difficult area, but FinCEN must swiftly develop regulations to ensure that it launches the program in the most robust way possible. Created by the Anti-Money Laundering Act of 2020 (AMLA), passed as part of the FY21 National Defense Authorization Act (NDAA), the program went into immediate effect.  Motivated by retaliation protections and the...

March 25, 2021

The eighth highest grossing casino in California, Artichoke Joe’s Casino, has agreed to pay $5.3 million in the largest agreed-upon penalty in California’s gambling regulation history.  According to the Attorney General’s Office, Artichoke Joe’s failed to accurately or timely report an investigation by the federal Financial Crimes Enforcement Network (FinCEN) to California’s Bureau of Gambling Control, as required under the Gambling Control Act of 1998.  As a result of the federal investigation, Artichoke Joe’s admitted that it failed to implement and maintain an effective anti-money laundering program and failed to report certain suspicious activity, in violation of the Bank Secrecy Act; the casino will pay a separate $5 million penalty to resolve those charges.  CA AG

COVID Frauds of the Week: DOJ Continues to Crack Down on PPP Fraudsters

Posted  03/19/21
ponzi scheme vs pyramid scheme
As of this week, the Small Business Administration has disbursed over $700 billion in Paycheck Protection Program (PPP) loans to small businesses and non-profits. There are over $100 billion in remaining appropriations, with additional appropriations likely to follow thereafter. With numbers like these, the program has become a magnet for fraudsters seeking to profit from the pandemic. The DOJ has been actively going...

The New BSA Whistleblower Provision – From the Whistleblowers’ Perspective

Posted  03/12/21
Headshots of Attorneys Mary Inman and Carolina Gonzalez
Constantine Cannon whistleblower attorneys Mary Inman and Carolina Gonzalez were recently guest bloggers at Money Laundering Watch from Ballard Spahr.  Ballard Spahr attorneys Peter D. Hardy and Meredith S. Dante posed questions to Inman and Gonzalez about recent amendments to the Bank Secrecy Act that provide new options for whistleblowers reporting anti-money laundering violations.  With the kind permission of...
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