Year: 2024

Fiji’s former Prime Minister Frank Bainimarama jailed for a year

Bribery, Corruption, Prosecutions
Frank Bainimarama, who was Fiji’s prime minister for some 15 years until losing power in 2022, has been jailed for a year after he was found guilty of using his position to shut down a corruption investigation into a prominent university. Once armed forces chief, Bainimarama seized power in a 2006 coup and later won democratic elections in 2014 and 2018. The 70-year-old narrowly lost the December 2022 election to a coalition of parties led by the current prime minister, Sitiveni Rabuka, but remains a popular figure. Outside the court in Suva on Thursday, a crowd of supporters gathered ahead…

Bribery Rocks Russian Defense Ministry, Senior Officials Detained

Bribery, Corruption
Russian authorities detained a senior Defense Ministry official, alleging his involvement in a large-scale bribery scheme exceeding 100 million Russian rubles (just over US$1 million), the Russian Investigative Committee stated Tuesday on its Telegram channel.The Main Investigation Department of the Committee (Следственный комитет Российской Федерации – SLEDKOM) said it has opened “a criminal case against the head of the personnel department of the Defense Ministry, Yury Kuznetsov.”“The investigation reveals that between 2021 and 2023, while serving as the head of the 8th Directorate of the General Staff of the Russian Armed Forces, Kuznetsov allegedly accepted bribes from representatives of commercial…

Treasury Unveils 2024 Strategy to Combat Illicit Finance Amid Evolving Threats

Terrorism
The U.S. Department of the Treasury today issued its 2024 National Strategy for Combating Terrorist and Other Illicit Financing, outlining the government’s priorities to disrupt money laundering, terrorist financing, and other financial crimes. The 2024 Strategy provides a comprehensive blueprint to address key illicit finance risks identified in recent national risk assessments, including large-scale fraud, ransomware attacks, the opioid crisis, terrorism, corruption, and exploitation of new financial technologies. “In this critical moment for our national and economic security, we need to continue to close the pathways that illicit actors seek to exploit for their schemes,” Under Secretary of the Treasury…

Singapore Money Laundering Suspects Invested Huge Sums in Dubai Property

Money Laundering
Three people arrested in a raid on an alleged money laundering ring in Singapore invested over $30 million in Dubai real estate, leaked data reveals. One of the suspects, who was wanted in China at the time, was behind a property broker that became a major sales agent for the city’s largest real estate developer, part-owned by Dubai’s ruler. Key FindingsSu Jianfeng, in detention in Singapore awaiting trial for charges of money laundering and fraud, is an owner of Dubai-based broker Fidu Properties DMCC. That firm was part of the Fidu Property Real Estate Brokerage, a top partner for Emaar…

Canada’s anti-money laundering agency imposes $6.7 mln fine on TD Bank

Money Laundering, Prosecutions
May 2 (Reuters) – Canada’s anti-money laundering agency said on Thursday it had imposed its biggest-ever penalty of nearly C$9.2 million ($6.71 million) on TD Bank (TD.TO) The bank has been grappling with regulatory probes over its AML compliance program both at home and in the United States, which have been a drag on the stock’s performance.The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) said the administrative monetary penalty on TD Bank was imposed on April 9 following a compliance examination in 2023. FINTRAC said it found that TD Bank had failed to submit suspicious transaction reports as…

Audit Firm BF Borgers and Owner Charged with Massive Fraud

Fraud, Prosecutions
The Securities and Exchange Commission (SEC) has leveled charges against audit firm BF Borgers and its owner, Benjamin F. Borgers. The SEC alleges “deliberate and systemic failures” by the firm to maintain compliance with the Public Company Accounting Oversight Board (PCAOB) in over 1,500 SEC filings. The SEC’s investigation revealed a pattern of misconduct, including false representations to clients about compliance with PCAOB standards, fabrication of audit documentation, and misleading statements in audit reports included in more than 500 public company SEC filings. As part of the settlement, BF Borgers agreed to pay a substantial $12 million civil penalty, with…

AUSTRAC and SkyCity agree to proposed $67 million penalty

Money Laundering, Regulatory Fines
SkyCity Adelaide Pty Ltd (SkyCity) and AUSTRAC have filed joint submissions with the Federal Court of Australia, proposing a $67 million penalty over the casino’s contravention of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). A court hearing has been set down for 7 June 2024, at which Justice Lee will consider the parties’ proposed settlement. While AUSTRAC and SkyCity agree that a $67 million penalty is appropriate in all the circumstances, it is a matter for the court to determine the appropriate penalty. In reaching this agreement, SkyCity has admitted that it operated in contravention of the…

Nearly 40% of dirty money is laundered in London and UK crown dependencies

Money Laundering
Deputy foreign secretary urges Cayman and British Virgin Islands to implement UK law requiring public registers of funds Nearly 40% of the dirty money in the world is going through the City of London and other crown dependencies, the UK’s deputy foreign secretary has said. Andrew Mitchell added the crown dependencies and overseas territories will face fresh demands from the Foreign Office to comply with UK laws setting up public registers of beneficial share ownership. Since legislation was passed in the House of Commons in 2016 the UK has faced prevarication from overseas territories which are reluctant to set up…

Fraud rife on secondhand marketplaces Depop, Preloved and Shpock

Fraud
Consumers have been encouraged to be vigilant when shopping online after research showed fraud was rife on secondhand marketplaces, with Depop, Shpock and Preloved named the worst sites, and problems also discovered with industry giants Amazon and eBay. A survey of 1,300 buyers by Which?, the consumer champion, found that 32% had been scammed on a secondhand marketplace in the two years to January. The most common ruse involved consumers receiving incorrect goods or nothing at all, while others were delivered an empty package or counterfeit goods. The survey comes as an international investigation by the Guardian, Die Zeit and…

FINTRAC imposes an administrative monetary penalty on Binance Holdings Limited

Money Laundering, Uncategorized
FINTRAC announced today that it has imposed an administrative monetary penalty on Binance Holdings Limited, also operating as Binance Holdings (IE) Ltd., Binance.com, Binance Global and Binance. This foreign money services business was imposed an administrative monetary penalty of $6,002,000 on May 7, 2024 for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations. Binance Holdings Limited was found to have committed the following administrative violations: Quote “Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime is in place to protect the safety of Canadians and the security of Canada’s economy. FINTRAC will continue…

Urgent action needed to fight money laundering and terrorist financing, say heads of FATF, INTERPOL and UNODC

INTERPOL, Money Laundering
Vienna (Austria), 13 May 2024 – Countries need to urgently step up their efforts to target the huge illicit profits generated by transnational organized crime that facilitate conflicts, fund terrorism, and negatively impact vulnerable populations.This was the unprecedented call to action from the heads of the Financial Action Task Force (FATF), INTERPOL and the UN Office on Drugs and Crime (UNODC) in Vienna today at a high-level side event on the first day of the 33rd session of the Commission on Crime Prevention and Criminal Justice (CCPCJ).By focussing on the proceeds of crime and the illicit financial networks behind them,…

Chinese takeaway worker Jian Wen jailed for money laundering after £3bn Bitcoin seizure

Money Laundering
A former Chinese takeaway worker found guilty of money laundering after police seized more than £3bn worth of Bitcoin has been jailed for more than six years. Jian Wen, 42, came to the attention of police when she tried to buy some of London’s most expensive properties, including a £23.5m seven-bedroom Hampstead mansion with a swimming pool and a nearby £12.5m home with a cinema and gym. The investigation led to the UK’s biggest-ever cryptocurrency seizure when more than 61,000 Bitcoin were discovered in digital wallets. The cryptocurrency was worth £1.4bn at the time but its value has now risen…

NCA secures first Unexplained Wealth Order in Northern Ireland

Money Laundering, Prosecutions
The National Crime Agency (NCA) has secured the first Unexplained Wealth Order in Northern Ireland against a man suspected of involvement in serious organised crime. The Order compels the man and his wife to explain the source of funds used to construct a property in County Armagh worth approximately £275,000. It was obtained at the High Court in Belfast on Friday (17 May) as part of an ongoing NCA civil recovery investigation.                           NCA investigators believe that the man, who is now resident in the Republic of Ireland, has…

ACCA report reveals the hidden cost of bribery for SMEs

Bribery
A new report from the Association of Chartered Accountants (ACCA) has revealed the pervasive impact of bribery and corruption on small and medium-sized enterprises (SMEs) worldwide. The report’s research, titled Bribery and corruption: The hidden social evil on your doorstep, underscores the urgent need for increased transparency and robust regulatory frameworks to combat these issues. It shows a high prevalence and deep concern about the damaging impact of bribery and corruption on SMEs, with more than half (59%) of SMEs and their advisers believing that standing up to bribery and corruption will cost them business trade or opportunities. The UK…

New EU rules criminalising the violation of EU sanctions enter into force

Sanctions
As from 19 May, new rules to harmonise criminal offences and penalties for the violation of EU restrictive measures enter into force. The new rules will ensure that such violations can be criminally investigated and prosecuted in all Member States. They include a list of criminal offences related to the violation and circumvention of EU sanctions, such as for example: failing to freeze assets; breaching travel bans and arms embargoes; providing prohibited or restricted economic and financial services, transferring funds that should be frozen to a third party or providing false information to conceal funds that should be frozen. The…

German regulator fines Commerzbank over anti-money laundering non-compliance

Money Laundering, Prosecutions, Regulatory Fines
German financial watchdog BaFin has ordered Commerzbank (CBKG.DE) to pay a fine of 1.45 million euros ($1.55 million) for breaching its anti-money laundering duties, the regulator said on Monday. “Commerzbank AG and the former comdirect Bank AG, of which Commerzbank AG is the universal successor, had breached their supervisory duties,” said the regulator in a statement. According to BaFin, the bank did not update customer data on time and did not provide proper security measures, which resulted in inadequate due diligence in three cases, thus violating its anti-money laundering obligations. Commerzbank said on Monday it has reworked due diligence and…

Lloyds Bank issues urgent warning over Taylor Swift ticket scams

Fraud
Fans of Taylor Swift are being targeted by a wave of concert ticket scams flooding social media, as the global music icon prepares to tour the UK for the first time in six years this summer.Analysis by Lloyds Bank of scam reports made by its own customers found a surge in fraud cases from those buying tickets for the star’s upcoming – and sold out – Eras Tour. Since tickets went on sale in July last year, more than 600 customers have come forward to report being scammed, significantly more than for any other music artist. The average amount lost…

US Department of Treasury Imposes Targeted Sanctions on Iran

Sanctions
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced targeted sanctions against multiple individuals and entities involved in Iran’s UAV (Unmanned Aerial Vehicle) program, steel industry, and automobile sector. The sanctions aim to disrupt Iran’s UAV production capabilities, particularly focusing on engine types powering Iran’s Shahed variant UAVs, which were utilized in the April 13 attack on Israel. These actions are directed towards individuals and entities facilitating Iran’s UAV production arm, including Kimia Part Sivan Company (KIPAS) and other Iranian UAV manufacturers. Additionally, OFAC is designating five companies across various jurisdictions involved in supplying component materials…

FINRA orders Barclays unit to pay $700K over conflicts of interest

Market Abuse, Prosecutions
A Barclays unit agreed to pay $700,000 to settle allegations levied by the Financial Industry Regulatory Authority (FINRA) that its research analysts violated conflict-of-interest rules and the firm failed to sufficiently supervise their trades. Barclays Capital agreed to be censured and pay the fine in reaching settlement, according to a FINRA order issued Friday. Barclays failed to identify and disclose 99 instances of its research analysts holding stock in a company in which they published a report and three instances of research analysts trading in their brokerage accounts in a manner inconsistent with published recommendations, FINRA alleged. The details: From…

Crypto.com Postpones South Korea Launch After Reports of Money Laundering Probe

Money Laundering
Justice Department’s First Cryptocurrency Open-Market Manipulation CaseA federal jury in New York convicted a man residing in Puerto Rico today of commodities fraud, commodities market manipulation, and wire fraud in connection with the manipulation on the Mango Markets decentralized cryptocurrency exchange. According to court documents and evidence presented at trial, Avraham Eisenberg, 28, engaged in a scheme to fraudulently obtain approximately $110 million worth of cryptocurrency from Mango Markets and its customers by artificially manipulating the price of certain perpetual futures contracts. “Avraham Eisenberg executed a manipulative trading scheme on a cryptocurrency exchange, defrauding the exchange and its investors out…

Ukraine’s agriculture minister suspected of corrupt land grab

Corruption
Ukraine’s agriculture minister has been made a suspect in a corruption probe. Agriculture Minister Mykola Solsky pledged on Tuesday his full cooperation with Kyiv’s anticorruption agency as it investigates the illegal acquisition of state-owned land. The case is the first against a minister under President Volodymyr Zelenskyy. The post of agriculture minister is particularly sensitive given Kyiv’s efforts to maintain its massive grain exports – a vital economic pillar – in the face of Russia’s invasion. The National Anti-Corruption Bureau of Ukraine (NABU) said it had uncovered a scheme led by a current minister to illegally acquire state-owned land worth…

SEC SEEKS $5.3 BILLION FINE FOR TERRAFORM AND CO-FOUNDER DO KWON

Fraud, Prosecutions
Federal regulators are pursuing a fine of $5.3 billion against Terraform Labs and its co-founder Do Kwon for defrauding investors, following a recent verdict that found them liable for a multi-billion-dollar fraud. Do-Kwan-Terraform-LabsIn a court filing, the U.S. Securities and Exchange Commission (SEC) requested that Kwon and Terraform pay $4.7 billion in disgorgement and interest for their involvement in the Terra-Luna collapse of 2022. Additionally, the SEC is seeking civil penalties of $420 million for Terraform and $100 million for Kwon. The SEC highlighted the need for a strong message to be sent, stating in the filing, “The Court should…

Man Convicted for $110M Cryptocurrency Scheme

Digital Currencies, Market Abuse, Prosecutions
Justice Department’s First Cryptocurrency Open-Market Manipulation CaseA federal jury in New York convicted a man residing in Puerto Rico today of commodities fraud, commodities market manipulation, and wire fraud in connection with the manipulation on the Mango Markets decentralized cryptocurrency exchange. According to court documents and evidence presented at trial, Avraham Eisenberg, 28, engaged in a scheme to fraudulently obtain approximately $110 million worth of cryptocurrency from Mango Markets and its customers by artificially manipulating the price of certain perpetual futures contracts. “Avraham Eisenberg executed a manipulative trading scheme on a cryptocurrency exchange, defrauding the exchange and its investors out…

Still no fines as a result of 2022 Russian sanctions breaches

Sanctions
No fines for sanctions breaches have been levied as a result of the 2022 sanctions against Russia since its full-scale invasion of Ukraine, correspondence from the Foreign, Commonwealth and Development Office (FCDO) reveals. Letter from Minister Trevelyan relating to Russian sanctions, dated 28/03/2024Read the report [HTML]Download the report [PDF 525B]Evidence Session: The situation in Ukraine and the UK’s responseInquiry: Responding to illicit and emerging financeForeign Affairs CommitteeMinister of State at the FCDO, Anne-Marie Trevelyan, writes that she expects Government investigations into potential breaches of the UK’s financial sanctions, imposed on Russian individuals and organisations since the invasion, to come to…

FATF Ministers commit to stepping up efforts to fight money laundering, terrorist and proliferation financing

Regulation
Washington, D.C., 18 April 2024 – The Ministers of the Financial Action Task Force (FATF) reaffirmed their unwavering commitment to combat financial crime, and fully support the FATF as the global standard-setter for preventing and combatting money laundering, terrorist financing and the financing of the proliferation of weapons of mass destruction (AML/CFT/CPF). During this biennial meeting in Washington DC, members recognised the achievements of the Singapore Presidency under FATF President T. Raja Kumar. These included major steps taken to enhance the FATF Standards on asset recovery – improving jurisdictions’ toolkits to recover the proceeds of crime, and also to reinforce…

UK Government to tackle global financial corruption 

Bribery, Corruption
UK Government to work with international community to tackle illicit flows of money through increased transparency of company ownership.  UK Deputy Foreign Secretary and Minister for Development and Africa Andrew Mitchell will announce a call to action on this issue during the World Bank Spring Meetings.  He will also announce a £2 million funding contribution to tackle corruption in support of the call to action.   Today (Tuesday 16 April), the UK Government will announce a global call to action for greater transparency on company ownership to tackle global illicit flows of money. Transparency about who owns, controls, or benefits from companies is…

‘You’re Never Too Busy For Your Banker’: How Italy’s ’Ndrangheta Mafia Allegedly Infiltrated Canadian Banks

Money Laundering
Angelo Figliomeni wanted answers. The alleged mob boss had sent an associate to make a deposit into his account at the Royal Bank of Canada, but there was less cash than expected. He got on the line with his “client care manager” at the bank branch, Nicola “Nick” Martino — who police alleged also happened to be a member of his organized crime group. “Thirteen thousand, three hundred, tell me why?” Figliomeni asked Martino. “Three days short, ‘cause it was February checks,” the banker replied. “Always an excuse!” Figliomeni barked at Martino. Little did they know, police were listening in.…

New EU rules to combat money-laundering adopted

Money Laundering, Regulation
Authorities, journalists, civil society organisations, to gain access to new registers, information sourcesEU limit on large cash payments up to EUR 10 000Due diligence rules to apply to football clubs and agents from 2029New EU Agency to directly oversee riskiest entities The European Parliament has adopted a package of laws strengthening the EU’s toolkit to fight money-laundering and terrorist financing. The new laws ensure that people with a legitimate interest, including journalists, media professionals, civil society organisations, competent authorities, and supervisory bodies, will have immediate, unfiltered, direct and free access to beneficial ownership information held in national registries and interconnected…

Cash couriers who smuggled millions in suitcases are sentenced

Money Laundering, Prosecutions
Six more members of a money laundering network which smuggled more than £100 million out of the UK to the UAE have been sentenced following an investigation by the National Crime Agency. The network transported the cash to Dubai during 83 separate trips between November 2019 and October 2020, overseen by ringleader Abdullah Alfalasi, 48, who was jailed for more than nine years in July 2022. The couriers, who were paid between £3,000-5,000 for each trip and would be booked on business class flights due to the extra luggage allowance, communicated on WhatsApp groups including one titled ’Sunshine and lollipops’.…

Panama Papers money-laundering trial begins

Money Laundering, Prosecutions
The trial of 27 people charged in connection with the Panama Papers money laundering scandal has started in a Panamanian criminal court. The leak of secret financial documents in 2016 revealed how some of the world’s wealthiest people stashed their assets in offshore companies. The defendants include Jurgen Mossack and Ramon Fonseca Mora who founded the now defunct law firm, Mossack Fonseca. They face money-laundering charges but say neither they, the firm nor its employees were involved in unlawful acts. In 2017, the firm said it was the victim of a computer hack and that the information leaked was being…

Bribery, fraud and anti-money laundering | UK Regulatory Outlook April 2024

Bribery, Regulation
Financial Conduct Authority 2024/2025 Business Plan The Financial Conduct Authority (FCA) has published its 2024/25 Business Plan, as a useful reminder of its objectives and areas of regulatory focus for the financial sector. Over the next year, the FCA will focus on reducing and preventing financial crime, prioritising the needs of consumers and strengthening the UK’s position in global wholesale markets. This follows its work update published in February 2024 (as reported in our previous Regulatory Outlook), which highlighted the need for firms to tackle fraud and ensure their systems keep up with the increasing sophistication of criminal groups.   For further information see our Insight.…

China former football chief sentenced to life for bribery

Bribery, Prosecutions
A former president of the Chinese Football Association (CFA), Chen Xuyuan, has been sentenced to life in prison for bribery, according to the country’s state media. In January, he pleaded guilty to taking bribes worth a total of 81 million yuan ($11.2m; £8.9m). An anti-corruption crackdown led by President Xi Jinping has cut through sport, banking and the military. In football, more than a dozen coaches and players have been investigated. The trial at the Intermediate People’s Court of Huangshi in central China revealed Chen’s illicit activities from 2010 to 2023, which included his earlier role as the president and…

US Sanctions Zimbabwe President for Corruption and Torture Against His People

Corruption, Sanctions
Zimbabwe President Emmerson Mnangagwa was sanctioned by the U.S. Treasury’s Office of Foreign Assets Control (OFAC) Monday for corruption and severe human rights abuses, which include members of his administration facilitating acts of kidnapping and torture. In addition to Mnangagwa, the U.S. blacklisted 10 members of his government and their spouses under the the Global Magnitsky Program for corrupt practices to the detriment of their citizen’s human rights and well-being. The new measures replace an older set of sanctions against the Southern African state, which the Biden administration felt were too harmful to the Zimbabwe economy. “The United States remains…

Gunvor S.A. to Pay Over $661M in Landmark Guilty Plea for Foreign Bribery Case

Bribery, Prosecutions
Gunvor S.A., an international commodities trading company based in Switzerland, has pleaded guilty and agreed to pay over $661 million to settle an investigation by the U.S. Justice Department, resolving allegations of violations of the Foreign Corrupt Practices Act (FCPA). The guilty plea follows an extensive probe into Gunvor’s corrupt practices, specifically its scheme to pay substantial bribes to Ecuadorean government officials with the aim of securing business deals with Petroecuador, the state-owned and state-controlled oil company of Ecuador. As part of the resolution, Gunvor entered into a plea agreement, admitting to conspiracy charges related to violating the anti-bribery provisions…

Two men acquitted of bribing Saudis in huge British defence deal

Bribery
Two men have been acquitted of paying bribes totalling millions of pounds to high-ranking Saudis after they argued that they had been unfairly prosecuted. Jeffrey Cook and John Mason had been accused of bribing a Saudi prince and his associates to secure and maintain a huge defence deal for a British company. But on Wednesday, a jury in London acquitted them after lawyers argued the payments had been authorised by the British and Saudi governments. Tom Allen, the KC representing Cook, had told jurors at Southwark crown court that a wide array of British politicians, officials and military figures had…

Expensive Art at Stake as Venezuelan Banker Faces U.S. Bribery Charges

Bribery, Prosecutions
He’s already facing charges for allegedly bribing a former Puerto Rican governor, and his bank is in liquidation following money laundering fines. Now, Julio Herrera Velutini has another legal concern: the state of his confiscated US$23-million art collection. Administrators in charge of liquidating his bank’s assets have “stashed” the collection “under conditions that seem inadequate for its proper preservation,” according to a lawsuit recently filed by Herrera Velutini. Herrera Velutini made the claims against Driven Administrative Services LLC, which has been appointed to administer Bancrédito International Bank and Trust Corporation. Herrera Velutini is the sole shareholder of Bancrédito Holding, the…

Settlement Agreement between the U.S. Department of the Treasury’s Office of Foreign Assets Control and EFG International AG

Regulatory Fines, Sanctions
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced a settlement with EFG International AG, a Switzerland-based global private banking group. EFG has agreed to pay $3,740,442 to settle its potential civil liability for processing 873 securities transactions in apparent violation of the Cuban Asset Control Regulations, the Kingpin Act, and +Order 14024. The settlement amount reflects OFAC’s determination that EFG’s apparent violations were voluntarily self-disclosed and were non-egregious. Article Credit: https://ofac.treasury.gov/recent-actions/20240314_33

Specialist CPS team involved in UK’s largest Bitcoin seizure

Digital Currencies, Money Laundering
An ex-takeaway worker has been convicted (Wednesday 20 March 2024) of laundering the proceeds which saw her rise from living above a Chinese restaurant to residing in a multi-million pound house in an affluent part of North London. Jian Wen, 42, was found guilty at Southwark Crown Court of an offence relating to money laundering. Picture of Jian WenJian WenA Metropolitan Police investigation resulted in the CPS seizure of Bitcoin wallets from Wen, with an initial estimated value in excess of £2 billion. Prosecutors told the court the sheer scale of the seized Bitcoin, the lack of any legitimate evidence…

FATF publishes guidance on Beneficial Ownership and Transparency of Legal Arrangements

Law, Regulation & Guidance, Money Laundering
Following the February 2023 revisions to FATF Recommendation 25 on Beneficial ownership and transparency of legal arrangements, the FATF has updated its risk-based guidance for this Recommendation. The guidance complements the existing guidance on Recommendation 24 on legal persons and aims to help stakeholders from the public and private sectors to implement the new requirements more effectively. The Guidance aims to assist countries and the private sector to better understand how transparency requirements apply to legal arrangements. It sets out practical guidance on how to understand and assess the money laundering and terrorist financing risks associated with trusts and similar…

Online Cryptocurrency Exchanger Pleads Guilty to Operating Unlicensed Money Transmitting Business

Digital Currencies, Money Laundering
Defendant Agrees to Forfeit $1.3 Million in Cash, Crypto and Precious MetalsEarlier today, in federal court in Central Islip, David Scotese pleaded guilty to operating an unlicensed money transmitting business. As part of his plea agreement, Scotese agreed to forfeit cryptocurrency, cash, and precious metals worth in excess of $1.3 million at current valuation. The proceeding was held before United States District Judge Joan M. Azrack. When sentenced, Scotese faces up to five years in prison. Breon Peace, United States Attorney for the Eastern District of New York, Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), Erin Keegan, Acting…