Over $2 trillion in illegally gained funds are reprocessed in the global economy as being legit despite the best efforts of financial institutions, new legislation passed by government agencies and crackdowns by law enforcement, according to the recent PYMNTS report, AI-Powered Analytics Help FIs Sharpen AML Strategies.
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While money laundering and wire fraud crimes continue to grab headlines, arrests are also being made in growing numbers, with nine crimes coming to some kind of transition in the past 48 hours as of Wednesday (March 30).
What the arrested and subsequent guilty pleas show is that money laundering is a difficult crime to crack because it has atypical boundaries and runs the gamut from college students to public officials to everyday employees.
Student in Ireland Pleads Guilty to Money Laundering
Daniel Horvath, a college student in Ireland, pleaded guilty at the Dublin District Court on Wednesday to money laundering, according to the Independent.
He admitted to letting fraudsters use his bank account to “store” the proceeds of Revenue Commissioners in exchange for a promised payout of approximately €200 ($223). A judge gave Horvath the benefit of the Probation Act after hearing the 22-year-old had no previous convictions.
Ecuador’s Former Comptroller General Indicted Over $10M Money Laundering Scheme
The former Comptroller General of Ecuador, Carlos Ramon Polit Faggioni, was indicted in Miami, Florida, on Tuesday (March 29) for an alleged money laundering operation that aimed to promote and conceal an illegal bribery scheme in Ecuador, the U.S. Department of Justice reported.
According to the indictment, he received over $10 million in bribes from Brazillian construction conglomerate Odebrecht in exchange for influence. Polit is charged with one count of conspiracy to commit money laundering, three counts of concealment of money laundering and two counts of engaging in transactions in criminally derived property.
If convicted, Polit faces up to 20 years in prison for each count of money laundering and conspiracy to commit money laundering, and up to 10 years in prison for each count of engaging in transactions in criminally derived property.
Former Kentucky Prosecutor Pleads Guilty to Wire Fraud
Michael T. Hogan, a former Lawrence County prosecutor in Kentucky, and his wife Joy M. Hogan pleaded guilty to wire fraud on Tuesday. Michael Hogan pleaded guilty also to federal program theft.
According to the DOJ, the Hogans “conspired with each other to commit wire fraud by issuing checks from a second delinquent tax account for the Lawrence County Attorney’s Office, the statements for which went to their personal residence.”
The couple issued “bonus” checks to Joy signed by Michael and paid with delinquent tax funds that should have been used to cover operating expenses for the Lawrence County Attorney’s Office.
The Hogans deposited these checks in Joy’s personal account and the couple’s joint accounts and spent the funds on personal expenses. Sentencing is July 6 and they could face up to 20 years in prison on the wire fraud charges, in addition to being fined as much as $250,000 or twice the amount of gain or loss.
Seattle Man Pleads Guilty to Wire Fraud
Ryan M. Tichy, 42, of Seattle, Washington, pleaded guilty to wire fraud and aggravated identity theft and could face up to 20 years in prison for operating an identity theft lab inside a trailer he purchased using another person’s identity.
The trailer reportedly contained materials, machines, computers and printers for use in producing both counterfeit identity cards and debit and credit cards. Foils, blank stock for driver’s licenses, an embosser, a card punch, printers, counterfeit driver’s licenses in various stages of completion and counterfeit credit cards were also discovered by law enforcement, according to the DOJ on Tuesday.
After gathering the information, Tichy allegedly created a fake driver’s license using his picture and the victim’s name. He then reportedly traveled around Washington, Idaho, Oregon, Nevada and elsewhere to make fraudulent purchases.
Georgia Woman Pleads Guilty to $1.5 Million in Fraud
Theresea Walker, 30, of Fairburn, Georgia, pleaded guilty to wire fraud on Tuesday and could face up to 20 years in federal prison for allegedly making nine false entries into her employer’s accounts payable system, the DOJ reported. Her employer was an IT provider for a defense contractor headquartered in Melbourne, Florida.
During the course of the scheme, Walker allegedly tried to hide her fraudulent activity by creating multiple fictitious invoices and fraudulent credit memos causing a nearly $1.8 million loss to her employer.
Illinois Woman Sentenced to 28 Months for Wire Fraud
Yvonna Lee, 36, of South Holland, Illinois, was sentenced to 28 months in prison after pleading guilty to wire fraud and aggravated identity theft, the DOJ reported. She also has to submit to one year of supervised release and pay $405,867 in restitution to the IRS.
Lee and others were convicted of filing fraudulent federal tax returns that gave their clients improper refunds in exchange for a percentage. As part of the operation, Lee assisted in preparing 146 tax fraudulent tax returns that resulted in over $400,000 in losses to the IRS.
Hawaii Bookkeeper Pleads Guilty to $1.2 Million Fraud
Paul Henri Marie Harleman, 35, of Honolulu, Hawaii, pleaded guilty to six counts of wire fraud and eight counts of money laundering, the DOJ said on Monday (March 28). He reportedly devised two fraud schemes to obtain money from three of his clients by forming an LLC and diverting payments into his own account.
Harleman faces up to 20 years in prison on each of the wire fraud counts and up to 10 years in prison on each of the money laundering counts, as well as a fine of up to $250,000 on each count, plus a term of supervised release up to three years.
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