Operation Tidal Wave: Seven Charged in $7.1 Million Money Laundering Scheme as Authorities Seize 135 Firearms in Northern District of New York
By the Constantine Cannon Whistleblower Team
Federal prosecutors in the Northern District of New York have charged Iziah Cox, Kaya Cox, Sincere Cox, Davion Carrington, Jahmell Manso, Tiffany Banks, and Tamicca Jennings with conspiring to launder $7.1 million in proceeds from a fraud scheme with victims around the world.[1]
The charges stem from an ongoing investigation known as Operation Tidal Wave, led by the U.S. Attorney’s Office and the FBI’s Albany Regional Financial Crimes Task Force. The investigation also resulted in the seizure of 135 firearms in August 2025.[2]
Who Were the Victims?
As stated in the indictment and previous case documents, Iziah Cox and his accomplices were allegedly involved in a scheme to defraud businesses, individuals, and financial institutions, laundering over $7.1 million.
The fraud targeted victims worldwide, primarily businesses, through business email compromises (BECs). These businesses received emails that seemed to be from legitimate companies with whom they had financial dealings. However, the email accounts were actually controlled by conspirators, who directed the businesses to wire payments to bank accounts managed by other members of the scheme. Defendants then conducted financial transactions to hide the nature, location, source, ownership, and control of their illegal proceeds.
How Was the Scheme Conducted?
To make the bank accounts appear legitimate and deceive financial institutions, the conspirators registered “doing business as” (DBA) entities in Albany County and other places, using the names of real companies worldwide. These DBA registrations allowed them to open bank accounts in those company names, which were then used to receive and quickly distribute the fraudulent proceeds.
Investigation Last Summer
The investigation was initiated last summer when a financial institution based in Albany, New York, notified the FBI about suspicious account openings and fraudulent transactions at its Capital Region branches. On August 19, 2025, the FBI’s Albany Regional Financial Crimes Task Force, consisting of local, state, and federal agency members, executed search warrants at various locations throughout the Capital Region. During these searches, agents discovered and seized 135 firearms, including machine guns, high-capacity magazines, and firearms with serial numbers removed.
Iziah Cox Charged Separately
Iziah Cox was charged separately by the grand jury with unlawful possession of a firearm as a felon, related to the firearms seizure.
Charges and Penalties
The charge for money laundering conspiracy carries a maximum penalty of 20 years in prison, a fine of up to $500,000, and up to three years of supervised release. The firearm charge against Iziah Cox carries a maximum penalty of 15 years in prison, a fine of up to $250,000, and up to three years of supervised release.
Comments on the Case
Acting U.S. Attorney John A. Sarcone commented: “I commend the tireless work of my Assistant U.S. Attorneys, the FBI, the IRS, and the Albany and Troy Police Departments in spearheading this investigation and terminating this worldwide fraud scheme. I also thank our local banking partners for their hawkish effort in spotting this scheme, which ultimately led to law enforcement seizing scores of dangerous firearms and getting them off our streets. We have all saved lives here.”
“Large-scale fraud schemes often depend on the ability to launder money. Effective AML enforcement is one of the government’s most important tools for disrupting fraud networks and protecting the public,” said Constantine Cannon partner Marlene Koury.
What Are Anti-Money Laundering (AML) Laws and Regulations?
The Bank Secrecy Act (BSA) and related regulations require U.S. financial institutions to implement effective AML programs and report suspicious activity. Violations can result in regulatory enforcement actions, civil and criminal actions, asset seizure, and forfeiture. The Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) administers the Bank Secrecy Act, and OFAC administers and enforces economic and trade sanctions laws.
How Can Whistleblowers Fight Financial Fraud?
Although it is unknown whether whistleblowers played a role in Operation Tidal Wave, whistleblowers can be instrumental in taking action to help stop financial fraud. Whistleblowers with knowledge about AML failures and sanctions violations are crucial in alerting regulatory agencies about otherwise hard-to-detect fraudulent schemes. Those who have worked within the organizations involved can offer FinCEN and other regulators a clear path to uncovering fraud.
Constantine Cannon Has Extensive Experience Representing AML Whistleblowers
Under the Anti-Money Laundering Whistleblower program, eligible whistleblowers who provide information that leads to an enforcement action for violations of the BSA can receive an award of up to 30% of the money recovered.
Our firm has significant experience representing whistleblowers under the AML Whistleblower program. If you would like to learn more or think you have a case, please contact us and we will connect you with a member of our whistleblower team for a confidential consultation.
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Sources:
[1] See https://www.justice.gov/usao-ndny/pr/operation-tidal-wave-seven-indicted-71-million-money-laundering-conspiracy-following
[2] See https://www.justice.gov/usao-ndny/pr/two-albany-men-charged-fraud-investigation-resulted-one-largest-ever-firearms-seizures.
Tagged in: Financial and Investment Fraud, Money Laundering,