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 a suitcase in a vehicle occupied by two residents from Sonora, Mexico.

    The previous day, federal agents at a different border crossing in Arizona had seized $70,000 dollars possessed by another person from Sonora, Mexico. According to a U.S. Customs and Border Patrol press release, the $70,000 was hidden in this spare tire of a 2008 Chevrolet Cheyenne:

Photo: Courtesy of U.S. Customs and Border Protection

  • "Concealing Cash By Laundering In Lithuania", mentioned two international gang members who were the subject of the Baltic Times article "Money Laundering Gang Detained". These gang members had supposedly targeted bank accounts with no financial activity and then allegedly hijacked them for use as laundering links in a money laundering circuit.

    Others facilitate their financial frauds by contrarily selecting bank accounts which have lots of financial activity. A December 15, 2009 press release explains that Lone Star National Bank former vice president Emma Vigil was convicted of bank fraud for her embezzlement. Ms. Vigil had concealed the embezzlement at Lone Star National Bank by targeting customers who had "high balance and high activity accounts".

Copyright 2009 Fred L. Abrams

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

Holocaust-era assets and Mutual Legal Assistance Treaties are the subjects of this “Asset Search News Roundup”:

    1. My article “During A War Everybody Loots A Little Bit“, discusses Nazi-looted art.  A December 1, 2009, press release also raises this issue.  The December press release explains that U.S. authorities recently recovered a painting in a Holocaust-era assets case.  The “Jeune Fille à la Robe Bleue” painting depicted below, had been looted from a Jewish family that fled Belgium during WWII.  A Long Island, N.Y. gallery owner ultimately cooperated in the painting’s forfeiture.

Image: U.S. Immigration and Customs Enforcement

  1. Mutual Legal Assistance Treaties are sometimes used to locate assets that are parked or hidden offshore.  A Swiss prosecutor proceeded in Florida last month under such a treaty in The Matter of Jarred Kaplan, 2:09-mc-00040-UA-DNF.  As outlined by a memorandum of law, the prosecutor sought to interview a possible witness in Florida pursuant to The Treaty for Mutual Assistance in Criminal Matters, May 25, 1973, United States-Switzerland, 27 U.S.T. 2019, T.I.A.S. 8302.  This suspected witness was believed to be related to the purchase of a watch stolen from Watchmaker’s Watch Center in Lugano, Switzerland on September 11, 2008.

Copyright 2009 Fred L. Abrams

“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 and the purchase of the former “Evita” mineral water plant in Biskupiec.

These prosecutors were investigating a possible violation of an anti-money laundering law codified at Article 299 of Poland’s penal law.  Prosecutors from Koszalin, Poland also recently sought their own letter rogatory through a November 23, 2009 application by the Delaware U.S. Attorney.  Like the prosecutors in Warsaw, they too had presumably followed the money trail to detect assets which might be concealed by money laundering in violation of Article 299.

According to their letter rogatory, the Koszalin prosecutors were apparently investigating Vlad Vladyslav Hubenko for a possible tax fraud and suspected laundering scheme.  Their letter rogatory mentioned a business entity known as “Hunter Universal LLC”, which reportedly resides in Delaware:

(Click On The Letter Rogatory To Read It)

  

Prosecutors from Poland also applied through the Delaware U.S. Attorney for another letter rogatory this past November 23.  This letter rogatory was sought by prosecutors from Bydgoszca.  They seem to be investigating the sale of fuel from Russia and Dorian Investments, Ltd., which was incorporated in Delaware.

Since financial investigators commonly know that shell companies prone to money laundering can easily be formed in Delaware, the filings of the above-described letters rogatory are no surprise.  I have previously written about this same laundering risk at “Domestic Shell Companies & An Asset Search” and “High-Risk Locations & An Asset Search“.

(Edited January 2, 2011)

Copyright 2009 Fred L. Abrams

Attorney Arienne Irving’s December 4, 2009 Judgment of Acquittal pursuant to Fed. R. Crim. P. 29, raises the general issue of lawyers or clients who might use illegal eavesdropping equipment to "research" an adversary.  I previously wrote about violating privacy laws via eavesdropping at "Attorney Christensen’s Wiretap Conviction".  That article explained how former attorney Terry Christensen had, (while representing billionaire husband Kirk Kerkorian), conspired to eavesdrop on a wife’s telephone conversations.

In Ms. Irving’s case, she and Attorney Robert Simels were indicted for suspected witness tampering and for allegedly possessing and shipping illegal eavesdropping equipment in derogation of 18 U.S.C. §§2512 (1) (a) & (b).  According to a DEA press release, a client of Mr. Simels and Ms. Irving had earlier used this eavesdropping equipment in Guyana to research or "target" apparent adversaries, some of whom were later murdered. 

As set forth in my "Asset Search News Roundup" for September 10, 2009, a jury returned a guilty verdict against Mr. Simels and he was sentenced to 168 months of prison.  Despite the same trial jury reaching the guilty verdict below regarding Ms. Irving, the Court acquitted her as previously mentioned.

(To Read The Jury’s Verdict Sheet, Click On It)

 Copyright 2009 Fred L. Abrams

Thehumanitarian non-profit Slovenian Red Cross operates in 12 regions with 916 local Red Cross organizations. Its former Secretary-General Mirko Jelenic however, is suspected of involvement in a criminal "breach of trust", as mentioned by Slovenian law. He might have used Slovenian Red Cross monies in a phony real estate sale agreed to in the year 2000.

GNN Inc., of 2316 Baynard Blvd.,Wilmington, could possibly also have been used as a nominee corporation to facilitate the supposed phony sale. The Delaware U.S. Attorney on behalf of prosecutors in Slovenia, therefore filed a motion on October 14, 2009 seeking the issuance of a letter rogatory about GNN Inc. The Court then issued its October 22, 2009 Order which permitted discovery via a letter rogatory about GNN Inc. in Delaware:

(Click On The Letter Rogatory Above To Read It)

On October 14, 2009 the Delaware U.S. Attorney had additionally sought the issuance of a different letter rogatory for prosecutors in Poland. As discussed at "Warsaw Prosecutors Eye Possible Money Laundering At 50 Platowcowa Street", the prosecutors in Poland too needed information from witnesses residing in Delaware, for a criminal investigation.

Letters rogatory are sometimes also an available legal remedy for: divorcing spouses, judgment creditors, etc. This is especially true if a divorcing spouse, judgment creditor, etc. is searching for assets that have been laundered through multiple jurisdictions and / or are hidden by cross-border elements.

(Edited December 10, 2009)

Copyright 2009 Fred L. Abrams

This "Asset Search News Roundup" is about "politically exposed persons" who are accused of hiding cash during alleged bribe-taking.  One such person is Governor José Roberto Arruda of Brasilia.  "Brazil in shock as secret video catches ‘corrupt’ governor red-handed", reports that Brazilian Federal Police in "Operation Pandora" possess surveillance video of  the Governor supposedly pocketing bribe money.  Others related to the Governor are also under suspicion for hiding cash bribes because of "Operation Pandora". 

The Governor’s press secretary and former Cabinet chief were both videotaped suspiciously counting cash into a bag.  The leader of the Governor’s regional government was filmed possibly hiding a bribe in her handbag.  A video clip reveals that "Tribuna do Brasil" newspaper owner Alcyr Collaço, might too have concealed a bribe in his underpants.  "Corruption Allegations Against Federal District Governor" reveals that a different video, could show Brazilian lawmakers Rubens Júnior César Brunelli and Leonardo Prudente praying after the supposed secret transfer of a bribe. 

One U.S. lawmaker similarly accused of hiding bribes is former Massachusetts state senator Dianne Wilkerson.  The surveillance video / still photos at "Public Corruption Charges Against Two Politically Exposed Persons" allegedly show her concealing a bribe by stuffing it into her bra.  A pretrial conference in her public corruption case is currently scheduled for December 15, 2009, according to the relevant docket report:

(To Read The Docket Report, Click On It) 

Copyright 2009 Fred L. Abrams

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

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

This "Asset Search News Roundup" mentions the sentence of a former Louisiana congressman and the 14,700 U.S. taxpayers who sought partial amnesty from the IRS:

  • A November 13th FBI press release explained that Former Louisiana Congressman William Jefferson was sentenced to thirteen years in prison for public corruption and other crimes.  As I discussed at the August 11th "Asset Search News Roundup", the former congressman was found guilty of soliciting bribes and then hiding them through money laundering.  He was also convicted of honest services wire fraud, racketeering and conspiracy.
  • Ms. Lynnley Browning’s article "14,700 Disclosed Offshore Accounts", reported that a number of U.S. taxpayers have voluntarily disclosed their secret foreign bank accounts as part of an IRS partial amnesty program.  As I wrote at "Some Abusive Offshore Tax Avoidance Schemes At UBS", U.S. taxpayers who own a foreign bank account with assets in excess of $10,000 are required to disclose the same at Schedule B, Part III of their U.S. Individual Tax Return Form 1040. They must also separately file a TDF 90-22.1, (a.k.a. a "FBAR" form).

"14,700 Disclosed Offshore Accounts" indicated that the disclosing taxpayers will be treated with leniency despite their failure to make the above-mentioned filings.  It also stated that the taxpayers may have been prompted to make their disclosures because of the settlement of U.S.A. v. UBS AG, 1:09-cv-20423.  In that case, the IRS tried to compel UBS to supply foreign bank account information belonging to suspected U.S. tax cheats.  As fully described by "UBS & Its ‘John Doe’ Summons", the IRS sought this information by serving the John Doe Summons depicted below: 

(Click On Images To Enlarge)

Copyright 2009 Fred L. Abrams