US: Money laundering scheme lands CV man in prison

on Tuesday, May 22, 2012
A Castro Valley resident was sentenced to two years in prison after pleading guilty Wednesday to money laundering and felony possession of a firearm.

Kirby Ward Blackmon, 58, admitted to authorities that he operated a check cashing business called KNZ Check Cashing in Hayward. Blackmon cashed checks totaling $50,000on Aug. 4, 2005, knowing the money came from unlawful activity, including the sales of items stolen outside the state. Blackmon did not require paperwork in cashing the checks, which also violated federal law.

In addition, Blackmon admitted he tried to obstruct justice by telling the check casher to lie to law enforcement.

And on Nov. 29, 2005, Blackmon admitted to illegal possession of a firearm. He previously was convicted of a felony, which prohibits him from possessing a weapon.

In addition to the two years in prison, U.S. District Judge Saundra B. Armstrong in Oakland sentenced Blackmon to three years of supervised release, a $5,000 fine and a $200 special assessment.

Wally Abed, the owner of KNZ Check Cashing at 589 W. Tennyson Road, said Blackmon sold him the business in December 2006. He said Blackmon started the business in 1985and also had owned check cashing businesses in Union City and Antioch, and that he sold them all about a year ago in order to retire because he had been in the hospital and had diabetes.

"I was surprised — maybe he was hard up for money," Abed said of the criminal charges. He said he last saw Blackmon about two weeks ago, when Blackmon came to pick up some mail.

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