The "Asset Search News Roundup: January 26, 2009 " mentioned that Heartland Payment Systems was subjected to what might have been the biggest credit / debit card information theft in the U.S. Mr. Albert Gonzalez was ultimately indicted for that privacy law violation / computer intrusion and other ones. In fact, Mr. Gonzalez pleaded
Associated Bank Sued For Supposedly Ignoring Red Flags
My article "Money Laundering By Minneapolis Money Managers?" reports that a lawsuit against Patrick Kiley, Trevor Cook and other money managers, had raised the question of whether Associated Bank breached a duty to prevent suspected money laundering. As I mentioned in that article, Associated Bank could have conceivably failed to follow a written Customer Identification Program under 31 CFR 103.121 ¶ (b) (2) (i).
After I wrote "Money Laundering By Minneapolis Money Managers?", two lawsuits were filed against Associated Bank raising these same issues. The gravamen of said lawsuits, was that Associated Bank had supposedly been negligent in allowing suspected securities fraudsters to open and maintain a nominee bank account in the name of Crown Forex LLC. Crown Forex LLC was reportedly a sham business entity and its Associated Bank account was possibly used as a laundering link to wash some of the proceeds of a suspected securities fraud.
The first of these lawsuits was briefly filed in Minneapolis federal court via a November 4, 2009, third amended complaint. That Minneapolis lawsuit against Associated Bank, was soon voluntarily dismissed pursuant to a December 9, 2009 filing and the Court’s December 10, 2009, Order. The second lawsuit against Associated Bank, (Herman Grad vs. Associated Bank NA, Brown County Case #2009-CV-002949), is however, still pending in Wisconsin. Continue Reading Associated Bank Sued For Supposedly Ignoring Red Flags
Asset Search News Roundup: December 25, 2009
Today"s "Asset Search News Roundup" highlights hiding / smuggling cash at U.S.-Mexican border crossings and describes how fraudsters might select bank accounts to facilitate their financial frauds:
- On December 14, 2009 federal agents reportedly seized $300,000 in undeclared currency at a U.S.- Mexican border crossing in Arizona. The $300,000 was allegedly hidden / smuggled in
Alleging Money Laundering In Private Sector Lawsuits
By claiming that proceeds of a judicial bribery scheme had been laundered from Italy into nineteen U.S. bank accounts, prosecutors sought asset forfeiture as described at "Using Multiple Jurisdictions To Launder Money". That forfeiture case was mostly based on U.S. anti-money laundering laws which included 18 U.S.C. §1956 (Money Laundering) and 18 U.S.C. §1957 (Money Laundering of property from specified unlawful activity).
In two of the cases mentioned at "Following The Money Trail From Poland To Delaware", prosecutors from Warsaw and Koszalin had asserted that they too suspected money laundering. In those cases the prosecutors sought the issuance of letters rogatory in Delaware by claiming that laundering could have occurred in violation off Article 299 of Poland’s penal law.
Like the foregoing prosecutors, litigants in the private sector may also allege that an adversary has fraudulently concealed assets in violation of U.S. and / or foreign money laundering laws. To cite just one example, the RICO plaintiff more fully described at "Divorce, RICO & An Asset Search", claimed that her ex-husband had laundered money in violation of 18 U.S.C. §1956.Continue Reading Alleging Money Laundering In Private Sector Lawsuits
Following The Money Trail From Poland To Delaware
“Warsaw Prosecutors Eye Possible Money Laundering At 50 Platowcowa Street “, mentioned that a tip letter led prosecutors from Poland to seek a letter rogatory via the U.S. Attorney in Delaware on October 14, 2009. The Warsaw prosecutors used this particular letter rogatory to try to elicit evidence about Prime Invest L.L.C. in Delaware
Asset Search News Roundup: November 28, 2009
On November 23rd the U.S. SEC commenced its enforcement action by filing the following civil complaint for suspected securities fraud against Minneapolis money managers Trevor Cook and Patrick Kiley:
(To Read The SEC’s Complaint, Click On It)
As I last wrote in my October 29th "Asset Search News Roundup", Mr. Cook and Mr. Kiley could conceivably also face money laundering charges. If this happens, they would be following in the footsteps of other suspected Ponzi schemers who were named in SEC civil complaints and then criminally prosecuted for alleged money laundering or other suspected financial frauds.Continue Reading Asset Search News Roundup: November 28, 2009
Warsaw Prosecutors Eye Possible Money Laundering At 50 Platowcowa Street
The General Inspector of Financial Control in Poland received an anonymous tip letter about alleged suspicious activity. This tip ultimately related to Ukraine resident Sergly Savchuk; Prime Invest L.L.C. of Florida and the Sesa Polska & Tecza Mazur limited liability companies of 50 Platowcowa Street, Warsaw:
The Warsaw Circuit Prosecutor’s Office next started their financial fraud investigation of Sesa Polska and Tecza Mazur at 50 Platowcowa Street. These Warsaw prosecutors presumably wanted to determine whether the Platowcowa Street companies, Prime Invest LLC and Mr. Savchuk, had laundered money in violation of Article 299 of Poland’s penal law.
It soon became apparent that Prime Invest L.L.C was a suspected shell company that had maintained a bank account in Poland. Mr. Savchuk might have also beneficially owned Prime Invest L.L.C. and had possibly used it in 2004 for the nominee purchase of the former “Evita” mineral water plant in Biskupiec.Continue Reading Warsaw Prosecutors Eye Possible Money Laundering At 50 Platowcowa Street
Asset Search News Roundup: November 16, 2009
A tax filing at the "Financials Page" of its website reveals that the Alavi Foundation had assets in 2007 with a fair market value of nearly $88 million. Federal prosecutors meanwhile, filed an amended complaint last Thursday against The Alavi Foundation. It sought asset forfeiture, as reported by Reuters, The New York
Anti-Money Laundering Bellwether Seeks Transparency Across The Globe
The Financial Action Task Force (“FATF”), is the bellwether for the fight against global money laundering and terrorist financing. Its leading role is recognized by U.S. lawmakers in the Bank Secrecy Act at 31 U.S.C. §5311, which states:
“FATF’s Forty Recommendations on Money Laundering and the … Special Recommendations on Terrorist Financing are
Seizing Assets In A Suspected Racial Profiling Scheme?
In "Forfeiture & The DEA’s Asset Search" Donnie the former DEA Special Agent spoke about the effectiveness of asset forfeiture. In that article, Donnie said: ‘asset forfeiture… can stop those who supply pseudophedrine to the meth super labs and Mexican cartels‘. "A Strategy Of Seizing Sinaloa Drug Cartel Assets" also recently explained that asset forfeiture was a vital tool in the fight against the Mexican drug cartels.
Notwithstanding the benefits of an ethical asset forfeiture program, there can be occasional abuses. Eight plaintiffs raise the issue of supposed improper seizure or asset forfeiture in James Morrow et. al. v. City of Tenaha Deputy City Marshal Barry Washington et. al., U.S. District Court for the Eastern District of Texas, Index No. 2:08-CV-288. These plaintiffs claim in their civil rights lawsuit pursuant to 42 U.S.C §1983, that some law enforcement officers in or near Tenaha Texas, had essentially seized assets in a racial profiling scheme.
Furthermore, an August 20, 2009 Memorandum Decision & Order reveals that the presiding judge intends to certify the plaintiffs’ case as a class action lawsuit under Fed. R. Civ. P. 23(b)(2). The plaintiffs who are African-Americans, assert they were driving in Tenaha Texas or on nearby state Highway 59. They allege they were subjected to unconstitutional traffic stops and cash seizures based on their race or ethnicity. Continue Reading Seizing Assets In A Suspected Racial Profiling Scheme?