Global money laundering gang jailed

A gang who used an online money transfer business to launder almost £50 million of criminal profits has been jailed following an international investigation by HM Revenue & Customs (HMRC).

Tanveer Hussain Jaffery, 61, and Naveed Ahmad, 45, both of Stoke-on-Trent, were the ringleaders of a group of criminals who ran a business called R2PK.com as a front to launder millions of pounds.

As part of the operation, coded serial number-based text messages were sent by criminals based all over the UK to tell couriers where and when to collect the ‘dirty’ money and deposit it into different branches of UK banks in amounts of £25,000 or less.

This process, known to law enforcement officials as smurfing, allowed the gang to stay below the radar prior to the investigation. The offences took place between 1 May 2007 and 30 September 2008 and resulted in the laundering of £48.6 million.

It is understood that the online money transfer business was used to clean up huge amounts of criminal cash that was sent to Dubai and then to Pakistan.

Peter Millroy, Assistant Director of Criminal Investigation for HMRC, said: "Money launderers such as these are as much a part of the criminal underworld as the fraudsters whose cash they clean.

“HMRC's dedicated teams of investigators will pursue and bring to justice those who attempt to disguise and hide the illegal profits of other criminals.”

Source: GT

Chinese Gang Laundering Money at Laundries

Spanish police say they arrested 34 Chinese citizens as they smashed a family-run crime gang suspected of importing fake goods and laundering the profits, with the help of a chain of laundries.

The raids in Madrid, Barcelona, Valencia, Cadiz, Seville and Huelva overnight broke up the largest Chinese-linked criminal gang based in Spain, operating since the 1990s, said the Civil Guard overnight.

Police detained 34 Chinese nationals and seized assets worth 11 million euros ($15 million), it said.

The gang may have earned more than 40 million euros ($54.64 million) a year, importing four-to-six containers a month through Valencia packed with fake tobacco, clothes and other goods bound for sale in Spain, Britain, France, Italy and Portugal, they said.

The Chinese family-run gang laundered the proceeds by moving the money around with couriers, making bank transfers of less than 20,000 ($27,318) and by extending high-interest loans to compatriots based in Spain, police said.

The gang recruited Chinese people it had helped to enter Spain, often taking away their passports after they arrived or opening bank accounts in their names to launder illicit gains, they said.

According to police, the organisation had a branch in China, which controlled more than 30 companies including a chain of nearly 1,000 laundries and was used to conceal the source of the profits.

Source: Herald Sun

Russia Raids Bank in Laundering Inquiry

The police raided a leading bank tonight as a Russian investigation into possible money laundering through the Bank of New York appeared to be gathering momentum.


The raid was at the Sobin Bank, one of the most politically well-connected banks, whose owners include some of the most powerful businesses.

The raid created an uproar when scenes of police officers prowling through the flashy glass-and-chrome headquarters of the bank were broadcast on television as bank employees gathered on the sidewalk.

When a crew from the state-owned network, ORT, arrived, they were almost immediately taken into custody. The crew said the authorities had been trying to open safe-deposit boxes.

The crew continued to film as they were taken away, on charges of entering the site of an investigation and filming against police instructions.

Tax and law-enforcement officials in Russia, who have been under pressure from United States authorties, have begun to investigate Russian banks linked to a huge money-transfering operation that involved billions of dollars that moved from Russia to the United States and then to other countries.

At the center of the United States inquiry, led by the Federal Bureau of Investigation, is the Bank of New York and a group of accounts at the bank controlled by the Benex International Company. The bank, which is cooperating with the Federal investigation, has said $7.5 billion moved through the Benex accounts over three years. The bank has not been accused of wrongdoing.

In New York, a Federal grand jury has indicted Benex and two other companies on charges of having illegally taken deposits and transmitting money without proper licenses, a violation of state and Federal laws.

The F.B.I. said it had been asking the Russian Government to examine banks in Russia that used Benex accounts. An American law-enforcement official said the F.B.I. had recently asked for information about the Sobin Bank and its links to money movement through the Bank of New York.

Russian officials contend that the United States is providing no information. ''We are compelled to check all these banks, because the Americans do not give us any information,'' the head of the State Tax Service, Aleksandr Pochinok, complained to the Russian newspaper Vedomosti. ''That does not mean all of these banks are bad. All of our banks worked with the Bank of New York.''

A member of the Sobin board, Mikhail Solovyov, declined to comment on the investigation.

Sobin has had a cozy and lucrative relationship with the Government. It handles the accounts of the State Customs Committee and has lent money to state agricultural enterprises. According to Banker magazine, it has been among the 1,000 largest banks in the world.

The main shareholders in the bank include Manezh Square, a fancy shopping center owned by the City of Moscow and Energiya, a manufactuer of rocket boosters, according to the AK&M, a Russian business-information agency.

Other major shareholders include the National Reserve Bank, a major bank with ties to the oil and gas industry, and SBS Agro, a once-powerful bank that has fallen on hard times.

The nation's leading oil company, Lukoil, is also said to be a major shareholder. And there have been reports that powerful executives with close relations to the Kremlin are also involved.

Last week, Russian prosecutors opened a separate criminal investigation into the Flamingo Bank, a small bank here that is one of several suspected of funnelling under-the-table payments from Russian importers through foreign banks.

Russian authorities said they had found $430,000 in cash at Flamingo with no official documentation to indicate its origin. That raised concerns about possible money laundering, according to Vladimir Minayev, director of the investigative unit for the prosecutor.

Source: The NY Times

College Park lawyer convicted of money laundering

A lawyer who operated out of College Park was convicted on federal money laundering charges Tuesday at the U.S. District Court in Greenbelt.


Walter L. Blair, 57, of Brookville, was convicted on nine counts of money laundering, two counts of failure to file a tax return, and single counts of witness tampering, obstruction of justice and making a false statement to an Internal Revenue Service agent.

Prosecutors argued that Blair, who had law offices in College Park and Washington, D.C., accepted $170,000 in 2003 from the relative of a Richmond, Va., drug dealer and used the money to purchase real estate and pay lawyers representing the drug dealer's acquaintances.

The relative had initially approached Blair for legal advice on how to handle the money, after the drug dealer had gone missing. The drug dealer was later found murdered.

"This verdict sends a clear message that no one is above the law, and attorneys who assist criminals with laundering their illegal income will be criminally prosecuted," C. Andre Martin, an IRS criminal investigator, said in a statement.

Federal Bureau of Investigation officials also testified that Blair told the relative not to tell investigators about the money and to lie if she was questioned on the topic. Evidence also showed that he failed to file tax returns in 2003 and 2004.

Blair faces a maximum 20-year sentence for each of the nine money laundering counts, 10 years for obstruction of justice, 10 years for witness tampering, five years for a false statement to an IRS agent and one year for each of the two counts of failing to file a tax return.

He will be sentenced by U.S. District Judge Peter J. Messitte at 9:30 a.m. March 10. Messitte will decide whether the sentences for each crime will be served concurrently or consecutively, said U.S. Attorney's Office spokeswoman Marcia Murphy.

E-mail David Hill at dhill@gazette.net.

Source: Gazette.NET

Foreign students used as front to launder money

A Wellington businessman was today sentenced to nine months' home detention for tax evasion, fraud and money-laundering using foreign students as a front and involving more than 350,000.

Walter Law, also known as Xu Liu, 45, had earlier pleaded guilty in Wellington District Court to five charges of tax evasion, six charges of providing false income tax returns, 21 charges of aiding a company to file false GST returns, one charge of aiding a company to file false income tax returns and five charges of aiding a company to evade tax.

Law also pleaded guilty to one charge of money laundering under the Crimes Act.

Tony Morris, Inland Revenue's assurance manager investigations, said Law conducted his activities using separate companies and unregistered entities which he owned or controlled.

"Our initial investigation into one of Mr Law's companies, Holiday KTV Entertainment Limited, revealed that significant amounts of cash were unaccounted for and the company had only reported its Eftpos transactions to Inland Revenue. Our subsequent analysis showed the company had evaded GST amounting to just over $68,000, PAYE of over $41,000 and Income Tax amounting to over $29,000," Mr Morris said in a statement.

Inland Revenue's investigation into Law's foreign exchange and travel businesses found he deposited $2.5 million into bank accounts in the name of two overseas home-stay students. The students said Law had control of these accounts and they had no knowledge that the funds were used to repay loans on properties owned or controlled by Law.

"Mr Law's foreign exchange and travel businesses made a surplus of $540,000 between 2004 and 2010," Mr Morris said.

"These entities not only failed to return around $170,000 in income tax to Inland Revenue but these funds were deposited into the students' bank accounts and recharacterised as loans from a private trust in China. This money was the undeclared income from the business transactions and this action amounted to money laundering," Mr Morris said.

Law's offending resulted in a loss to Inland Revenue of just over $350,000, which had since been recovered.

"Mr Laws deliberately tried to evade his tax obligations by not declaring his income and hiding cash in other people's bank accounts. This case is a further reminder that Inland Revenue is using increasingly sophisticated analysis to detect those trading in the hidden economy," Mr Morris said.

"Businesses and individuals doing the right thing can be confident that Inland Revenue will detect those evading their obligations and those cheating on their taxes should be aware that we will take action when we detect deliberate non-compliance."

Law was also sentenced to 200 hours' community service.

Source: NZ HERALD

Turkey property 'scam' man faces court hearing

An NI man alleged to be involved in a multi-million pound property scam in Turkey is to appear in court later this month charged with 171 fraud offences.

Kevin O'Kane, 51, who is originally from Bellaghy and now lives in Portglenone, is accused of obtaining money and property by deception.

About 80 people from NI are believed to have paid £75,000 each for three bedroom properties near Bodrum.

Mr O'Kane has consistently claimed he is himself the victim of a scam.

His solicitor has said he will be denying the charges.

He faces one court of money laundering, three of forgery and 167 of obtaining money or property by deception.

The charges date from between 2005 and 2007.

It is alleged that he falsely represented himself as the landowner, builder and developer of the Golden Beach Villas and claimed that he had the authority to sell them.

His solicitor, Hugh Leslie of John J Rice and Company, said his client had fully co-operated with investigating police.

"He has given full explanations as to his business activities in Turkey.

"He makes the point that he has lost financially as a result of his involvement in those activities and that the people who are responsible for the loss of money involving so many investors in Northern Ireland are still in Turkey.

"He says he acted in good faith."

He added that Mr O'Kane believed there was a risk to his personal safety in Turkey.

"He is anxious to clear his name and he will be pleading not guilty at his eventual trial."

It is believed that at the court hearing on 27 August, the Public Prosecution Service will apply to have Mr O'Kane returned for trial by a jury.

Source: BBC

Latvian citizens involved in money laundering ring in Ukraine

An organized crime group has been uncovered in Ukraine. Its members, Latvian citizens, were laundering money through multi-million public procurements. However, they still have not been taken into custody and no charges have been pressed against them.

The TV3 broadcast "Neka personiga" reports that panic has spread among the high-ranking Ukrainian officials, because the influential energy and oil minister must now explain why the state company Cernomornaftogaz spent USD 400 million on an oil rig that does not cost more than USD 248 million, informs LETA.

The purchase of the rig was conducted via a fixed tender. Two offshore companies, headed by Latvian citizens Stanislavs Gorins and Eriks Vanagals, offered the rig at exorbitant prices.

Vanagels is connected with the company Stabu 58, which belongs to former security service employees. The company used to earn money by storage of cars seized from intoxicated drivers.

The Ukrainian press informs that the money laundering scheme included not only 71-year-old Vanagel, but also his 44-year-old son.

"Neka personiga" met with Gorins at his office in Riga. The Insurance broker claims that he is not familiar with Vanagels and has no idea who is using his signature on the offshore companies' documents.

Even though it is still not clear whether these persons are capable of implementing such a large-scale money laundering affair, "Business New Europe" reporters have revealed that there are links between Gorins and Vanagels, and both Latvians also had other successful deals in Ukraine.

Source: The Baltic Course

Mogadishu Mayor Accused of Money Laundering

Ahmed Nur Mohamoud better know as Tarzan, the mayor of Mogadishu was widely accused of money laundering.

Kulmiye Yabarow Haruur, Shibis district commissioner told Shabelle Radio that he has clear evidence showing Mogadishu mayor has misused and mismanaged revenues of Benadir region. He said the money destined for the women working on hygienic fields in the capital is missing because he took them.

Harur spelled out all Mogadishu's district commissioners know the mayor's money laundering. The statement of Shibish district commissioner comes days after the mayor of Somalia's capital denied he committed money related crimes such as mismanaging and misusing.

Source: All Africa

David Murcia extradited to US to face money laundering charges

Former DMG director David Murcia, convicted of managing a Ponzi scheme that defrauded hundreds of thousands of Colombians, was surrendered to U.S. authorities in Bogota Tuesday to face charges of laundering drug money before a U.S. court.


Heavily armed policemen escorted the disgraced rags-to-riches businessman early Tuesday morning from the La Picota prison in Bogota to a special airbase where two U.S. airplanes were waiting to take him to New York.

Murcia received a 30-year prison sentence in December after a judge had found him guilty of money laundering and illicit enrichment.

His company, DMG, became one of Colombia's wealthiest enterprises as it convinced hundreds of thousands of mostly poor Colombians to invest their savings into prepaid cards that could later be exchanged for products worth many times more than the invested money.

The scheme collapsed in 2008 when the Government ordered the closure of the company and its activities, and arrested all the company's executives, resulting in great losses for clients of DMG. Most of the money that was "invested" in the company is still missing.

Source: Colombia Reports

Swiss money laundering docs mysteriously shifted

As the news comes that the Supreme Court will start hearing petitions against NRO cases from 7th Dec, Geo News has reported that in a secret operation headed by Pakistan envoy to UK, Mr. Wajid Shamsul Hasan, documents and evidences related to the Swiss Money Laundering Case have been taken over in Geneva and shifted to unknown location(s).


It is not clear where these documents are presently kept at, whether they have been brought up to the Pakistan Embassy in UK by Mr Hasan, and who has its official custody now.

The Swiss money-laundering charges against President Asif Zardari were taken seriously by the international banking circles and the governments in 1999 when US Congress launched an intensive investigation into the allegations of money-laundering by Citibank through private banking.

A permanent sub-committee on investigation by the US Congress found two cases intriguing enough to kick off a thorough probe. Nigeria s military dictator Sani Abacha and President Zardari’s bank accounts qualified for this investigation and US Congress found that both had been involved in money-laundering through Citibanks negligence, said a report.

Pakistan’s High Commissioner to Britain Mr. Wajid Shamsul Hasan, is a close confidant of President Asif Zardai and the Bhutto family. He reportedly personally received at least 12 cartons of original documents and evidences against Mr Zarari against whom the money laundering case was filed by the Pakistan government in Geneva, Geo News reported Tuesday.

Geo News team is said to have secretly filmed the whole episode from an undisclosed location after receiving tip-off from reliable sources.

According to its correspondent, the Prosecutor General of Pakistan deposited these cartons to Geneva legal authorities during the former President Gen (R) Pervez Musharraf’s government.

The secret operation on Monday was carried out at the bidding of a "top personality" of Pakistan, says Geo, as these evidences could be used if the said case was reopened after the National Reconciliation Ordinance (NRO) term came to an end, on November 28, 2009.

The Supreme Court of Pakistan has announced that it will look into the National Reconciliation Ordinance (NRO) that has benefited President Zardari among others. The hearings are said to start on December 7th.
The judge in Geneva, Daniel Devaud, who originally investigated the charges against President Zardari late wife Mohtarma Benazir Bhutto is on record having said that the withdrawal of the case does not prove Zardari’s innocence. The withdrawal of the case had come as a shock to me and it should not be interpreted as a sign of Zardari’s innocence, the Daily Times quoted Devaud as saying.

Source: PK on WEB

Spanish Judge Demands US$77 Million From Pinochet’s Wife And Advisers

Spanish judge Baltasar Garzon on Monday demanded that the widow and advisors of former Chilean Dictator Augusto Pinochet pay US$77 million to a Spanish charity for his regime’s victims within the next 10 days.


If the money is not paid, the dictator’s widow, Luicia Hiriart, and three associates, Oscar Aitken, Pablo Granifo and Hernan Donoso, will all face extradition to Spain on charges of embezzlement and money laundering and will have up to US$25 million worth of their assets frozen.

The judge intends to visit Chile with colleagues from the Spanish high court to oversee investigations against the four charged.

The money is sought by Spanish organization Foundación Salvador Allende to compensate the families of Spanish nationals killed during Pinochet's regime, which began after the 1973 military coup that toppled elected president Allende. This is the latest of Garzon’s charges against Pinochet and members of his inner circle.

Garzon arranged for the 1998 London arrest of the dictator on charges of genocide and terrorism. Pinochet was released after 16 months of extradition proceedings, but he was facing charges of tax evasion, embezzlement and money laundering until his death in 2006.

His family members and former legal advisor Aitken were acquitted of wrong-doing in previous cases and therefore cannot face retrial in Chile. However, evidence has emerged in recent years that Pinochet amassed a fortune in kick-backs from international arms deals and misappropriation of public funds. This wealth is apparently held in bank accounts all over the globe.

In 2005 the Salvador Allende charity received US$9 million after American-based Riggs bank was found guilty of holding illegal accounts for Pinochet. Following on from that case the organization petitioned Spanish courts to bring similar charges against Chilean Banco de Chile and two of its subsidiaries. Garzon postponed the case so that individuals at the bank could be identified and evidence collected against them.

Two of those charged yesterday are high-ranking officials at the Banco de Chile. Granifo is currently the firm’s president, while Dononso is a former head of the bank’s US operations. The bank was acquitted of wrongdoing in a 2006 US investigation into money laundering allegations against the bank's New York operations (ST. Oct 5, 2006).

Corruption charges also continue to emerge in Chile, with the arrest earlier this year of a former military aide to the dictator accused of misappropriating up to US$20 million in public funds. Human rights investigations against former secret police agents are also ongoing (ST. Sept 3).

In September 2008 the Chilean government announced that it would seek the return of US$26 million held in secret accounts for Pinochet from the Miami branches of four different banks including Banco de Chile and Spanish bank Santander (ST. Sept 30, 2008).

The Pinochet family has always denied corruption accusations made against the late dictator, insisting that their private wealth was accumulated thanks to financial prudence and wise investments.

SOURCE: El MERCURIO, LA TERCERA, EL PAIS.COM
By James Fowler ( editor@santiagotimes.cl )

Vatican bank accused of money laundering: Report

The Vatican bank is under investigation for suspected money laundering via accounts held at one of Italy’s largest banks, the UniCredit Group, according to the Italian investigative weekly Panorama. In its latest issue published Friday, the magazine claims prosecutors are probing transactions totalling 180 million euros handled between 2006 and 2008 by Vatican bank (IOR) accounts held at Unicredit’s branch near the Vatican in Rome’s Via della Conciliazione.


Some of the funds came from the sale and purchase of real estate, according to the weekly, and the banking operations allegedly break money laundering laws.

Prosecutors told the magazine that they would in the next few days to question Unicredit’s senior management over the suspect operations.

They are also investigating deposits made at other Italian banks, Panorama said.

Prosecutor Nello Rossi is heading the investigation, which is being carried out in conjunction with financial specialists from the Italian tax police.

The Vatican bank is no stranger to controversy. It owned a small part of the Banco Ambrosiano and was held partially responsible for the $1.3 billion in bad debts that it left when the bank collapsed.

A Rome court in 2007 said the Italian mafia was behind the 1982 death of former Banco Ambrosiano president Roberto Calvi, who was known as ‘God’s banker’ because of the illicit financial dealings he handled that connected him to the Vatican bank.

Calvi was found hanging beneath Blackfriar’s Bridge in London June 18, 1982, with his pockets weighed down with bricks and stones and over $15,000 in cash.

Source: The Indian

Two Foreign Nationals Sentenced for Roles in International Money Laundering Scheme Involving Online Sales

Two Bulgarian nationals have been sentenced in U.S. District Court in the District of Columbia for their roles as money launderers for a transnational criminal group based in Eastern Europe, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.

Ivaylo Vasilev Pletnyov, 39, of Svishtov, Bulgaria, was sentenced yesterday to four years in prison by U.S. District Court Judge Paul L. Friedman for conspiracy to commit money laundering. Pletnyov was also sentenced to three years of supervised release following his prison term and was ordered to pay $306,502 in restitution. Pletnyov pleaded guilty on Jan. 15, 2009.

Nikolay Georgiev Minchev, 45, of Sofia, Bulgaria, was sentenced yesterday to 30 months in prison for conspiracy to commit wire fraud. Minchev was also sentenced to three years of supervised release following his prison term and was ordered to pay $270,444 in restitution. Minchev pleaded guilty on Sept. 21, 2008.

According to court documents, from approximately July 2005 through May 2006, Pletnyov and Minchev participated in a scheme to post advertisements on eBay and other web sites, fraudulently offering expensive vehicles and boats for sale that they did not possess. When the U.S. victims expressed interest in the merchandise, they were contacted directly by an e-mail from a purported seller. The victims were then instructed to wire transfer payments through "eBay Secure Traders"--an entity which has no actual affiliation to eBay but was used as a ruse to persuade the victims that they were sending money into a secure escrow account pending delivery and inspection of their purchases. Instead, the victims' funds were wired directly into bank accounts in Hungary, Slovakia, the Czech Republic and Greece that were controlled by Pletnyov, Minchev and their co-conspirators. According to court documents, in less than one year, the criminal conspiracy netted more than $1.2 million from U.S. victims.

Pletnyov and Minchev were originally charged on Jan. 9, 2008, along with four additional defendants: Roman Teodor, Georgi Vasilev Pletnyov, Georgi Boychev Georgiev and Antoaneta Angelova Getova. The United States continues to work with foreign counterparts in Romania and Poland regarding the remaining defendants. An indictment is merely an accusation and the defendants are presumed innocent until and unless proven guilty at trial beyond a reasonable doubt.

This investigation was conducted by the FBI - Hungarian National Bureau of Investigation (HNBI) Organized Crime Task Force located in Budapest, Hungary (Budapest Task Force). The Budapest Task Force was established by the FBI in April 2000 in an effort to address the increasing threat of Eurasian organized crime groups to the United States. Its objective was to develop cooperation with law enforcement in Central/Eastern Europe, and to identify transnational cases with a nexus to the United States.

The case is being prosecuted by Trial Attorney Lisa Page of the Criminal Division's Organized Crime and Racketeering Section. The Criminal Division's Office of International Affairs provided significant assistance on this case.

SOURCE: PRNewsWire

CUMBRIAN FATHER AND SON IN COURT ACCUSED OF MONEY LAUNDERING

A father and son from Carlisle have appeared in court accused of money laundering after police seized £165,000 in cash from a house in Houghton.


William Henry Young senior, 53, who gave his address in court as the Sunny Dale Caravan Park, Accrington, Lancashire, faces a charge of concealing criminal proceeds on November 30 this year.

He entered no plea and was remanded in custody. His son, also called William Henry Young, 32, of Ghyll Bank Yard, Ghyll Bank, Lower Harker, near Carlisle, faces two charges.

The first alleges that he concealed, disguised, converted, transferred, or removed criminal property – namely money – by the means of concealing cash and bank accounts.

He is alleged to have committed the offence on July 7 this year in Carlisle.

The second allegation – identical to that faced by his father – is that he concealed or disguised criminal proceeds on November 30 year.

He too entered no pleas and was remanded in custody.

Both men spoke only to confirm their names and addresses, with the older defendant saying he had a “care of” address at The Green, Houghton.

Police confirmed yesterday that they had seized £165,000 in cash from a property at The Green, Houghton.

It was one of the largest such cash seizures ever made in Cumbria, say police.

The police search, and another one at Ghyll Bank Yard, Harker, were conducted after search warrants were obtained, and were part of an ongoing money laundering investigation.

Young senior was represented by defence lawyer Claire Kirkpatrick, while his son was represented by Christoper Toms. Magistrates declined to take the case and confirmed that they will send both defendants to Carlisle Crown Court in the coming weeks.

The case will come back before magistrates on December 10.

Source: News Star

Iranian to be sentenced in arms smuggling case

An Iranian man who secretly pleaded guilty to plotting to ship sensitive U.S. military technology to Iran will be sentenced this month, federal authorities said Wednesday as they also revealed that the suspect told an undercover investigator Iran's leaders believe war is coming.

Amir Hossein Ardebili faces up to 140 years in prison after pleading guilty to charges that include conspiracy, money laundering, smuggling and arms export control violations. His case was the latest example of what U.S. officials have described as an intense effort by Iran to evade export controls and acquire critical military technology amid a long-running standoff with the West over its nuclear program.

John Morton, assistant secretary for Immigration and Customs Enforcement, noted just last week an alleged Belgian arms dealer pleaded guilty in federal court in Alabama to charges of conspiring to export fighter jet engines and parts to Iran.

"There is no question that there is an orchestrated effort by the government of Iran to acquire weapons in violation of our laws," he said.

"Unfortunately, there's a whole network of these guys out there, ... and not just on behalf of Iran," Morton added.

Prosecutors said the guilty plea and other details have been kept secret until now because of an ongoing investigation.

Ardebili's defense attorney, Edmund Lyons, did not immediately return a telephone message Wednesday.
Ardebili gave a stark explanation for why he was trying to buy so many different weapons parts, including technology that would help protect Iran from missile attacks.

"By his own admission, Ardebili was assisting Iran in preparing for war with the United States," prosecutor David Hall wrote in a sentencing memorandum.

Court papers also said during a 2007 meeting with an undercover agent, Ardebili said he wanted so much material so "the government (of Iran) could defend ... Because they think the war is coming."

Last month, Iranian President Mahmoud Ahmadinejad hinted of link between the Ardebili case and that of three young Americans seized by Iran after they crossed the border from northern Iraq. The U.S. and their families said the three are innocent hikers who strayed into Iran accidentally, but Iran has accused them of espionage and could put them on trial.

At a Nov. 9 news conference, Ahmadinejad said Iran's judiciary would deal with the American hikers — then noted that Iran accuses the United States of holding several of its citizens.

According to court papers, Ardebili worked as a procurement agent for the Iranian government and acquired thousands of components, including military aircraft parts, night vision devices, communications equipment and Kevlar. Federal authorities targeted him in 2004 after he contacted an undercover storefront set up in Philadelphia to investigate illegal arms trafficking.

Weiss said that in working with undercover agents, Ardebili's primary interest was in obtaining electrical components with military applications.

Authorities said Ardebili had made wire transfers to bank accounts in Delaware and Massachusetts as part of an effort to illegally acquire the technology.

Ardebili also tried to obtain replacement computer systems to update Iran's fleet of aging F-4 fighter aircraft, authorities said.

After years of telephone and e-mail communications with the undercover agents, Ardebili finally agreed to meet with them in the Caucasus nation of Georgia, where he was arrested in October 2007 and his laptop computer was seized.

"There are a number of transactions that are disclosed on the defendant's laptop," Weiss said.
Sentencing is scheduled for Dec. 14.

Source: AP

Accountant jailed for laundering drugs money

A Manchester accountant has been jailed for laundering more than £1.2m for an international drug dealer, partly through property deals and living a luxury lifestyle in Wilmslow in Cheshire.

Malcolm Carle, (pictured left) 57, helped his boss Walter Callinan (pictured right) process money from importing and selling cannabis and bought a £1.2m hotel with the cash, according to the Manchester Evening News.

Police reportedly found evidence of a cash receipt of £973,000 in cash and details on the purchase of the Hadley Green Bowling Inn near Worcester.

Carle used the money to follow Chelsea FC around the world, drive a Jaguar and even took out a secret loan against the hotel to finance his own property purchase.

He was jailed for six years at Winchester Crown Court after admitting three offences of money laundering on 15 November.

His accomplice, Walter Callinan, 59, who lived in a mansion in Malaga, was sentenced to 11 years for two drug-dealing offences, five counts of money laundering and two passport offences.

When police raided Carle's home they found more than £10,000 in cash and uncovered a complex network of trusts and overseas companies, so well concealed the Serious Organised Crime Agency had failed to find them, according to evidence.

The clerk of Winchester Court confirmed the proceeds of crime investigation is still ongoing.

Five co-defendants were also jailed for their part in the drug scam.

Source: Mortgage Solutions by Vicky Hartley

Madoff faces 150 years in alleged Ponzi scheme

by ANTHONY M. DESTEFANO

Bernard Madoff, after being charged with 11 counts for allegedly running Wall Street's biggest Ponzi scheme, now faces up to 150 years in prison when he pleads guilty tomorrow, officials said yesterday.

Manhattan federal prosecutors unveiled the charges, as well as the 70-year-old's prospect of dying behind bars, during a court appearance in which the disgraced investment adviser told a judge that he wanted to keep his lawyer despite potential legal conflicts.

The attorney, Ira Sorkin, said Madoff intends to plead guilty to the charges tomorrow.

In disclosing the charges, prosecutors revealed that Madoff is accused of mail fraud, wire fraud, securities fraud and money laundering in connection with a $50-billion Ponzi scheme that allegedly ran for more than 25 years. He is also charged with perjury, giving false statements to the Securities and Exchange Commission and stealing from an employee benefit program.

"From at least as early as the 1980s through on or about December 11, 2008, Bernard L. Madoff, the defendant, perpetrated a scheme to defraud the clients of Bernard L. Madoff Investment Services by soliciting billions of dollars of funds under false pretenses," federal prosecutors said in charging documents.

"I think 150 years is in the right direction," said investor Burt Ross of Englewood, N.J. "When will he go to jail?"

The documents didn't spell out a specific amount of investor losses. But the charges noted that as of November, Madoff's clients received statements showing total balances in their accounts of $64.8 billion, when the amount was just a fraction of that. When he was arrested, Madoff allegedly told investigators his scheme totaled $50 billion.

The charges also indicate other unnamed Madoff employees took part in the alleged scheme by generating false account statements and trading tickets to show investment activity that didn't exist.

There wasn't information on Madoff's wife, Ruth, who is on the verge of being counseled by the law firm of former federal prosecutor Peter Chavkin, in court as a special counsel to advise Madoff on the conflict-of-interest issues involving Sorkin. Chavkin has cited that possibility in court.

Madoff, under house arrest after posting a $10-million bond, also diverted $250 million in client funds over a six-year period to fund the operation of his legitimate market-making activities, according to the documents.

Disclosure of the charges overshadowed the ostensible reason for the court hearing, which was the legal conflict of interest issue. On that point, Madoff, who had come to court wearing a protective vest, spoke publicly for the first time. Leaning against a table, Madoff for 12 minutes answered repeatedly with "Yes," and "Yes, I am," when asked by U.S. District Court Judge Denny Chin if he understood or was aware of the nature of Sorkin's potential conflicts.

Sorkin had represented two men who were potential witnesses against Madoff, and his family members had prior investments with Madoff's company. Sorkin himself also at one point had about $60,000 in retirement money invested with Madoff, but took it out around 1993, court papers disclosed.

Prosecutor Marc Litt revealed Madoff hasn't signed an agreement with the government, indicating he would have to plead guilty to all charges and could face up to 150 years. "He is throwing himself at the mercy of the court," said a defense attorney not involved in the case who didn't want to be named.

Chin said sentencing would take place "several months" after any guilty plea.

THE CHARGES (With maximum prison sentences)

SECURITIES FRAUD (1 COUNT) Alleges Madoff ran a Ponzi scheme out of his investment firm for more than 25 years. Penalty: 20 years

INVESTMENT ADVISER FRAUD

(1 COUNT) Alleges that as investment adviser, Madoff defrauded his clients for more than 25 years. Penalty: 5 years

MAIL FRAUD (1 COUNT) Alleges that Madoff used the mail to perpetrate his fraud. Penalty: 20 years

WIRE FRAUD (1 COUNT) Alleges that Madoff used wire communication such as the telephone, faxes and computers to carry out his fraud. Penalty: 20 years.

INTERNATIONAL MONEY LAUNDERING (1 COUNT) Alleges that Madoff transferred funds from his business in New York to his offices in London and back again to carry out a fraud. Penalty: 20 years

INTERNATIONAL MONEY LAUNDERING (1 COUNT) Alleges Madoff transferred funds back and forth to Europe to disguise their nature as proceeds of a crime. Penalty: 20 years

MONEY LAUNDERING (1 COUNT) Alleges that Madoff diverted more than $54 million from an employee benefit fund. Penalty: 10 years.

FALSE STATEMENTS (1 COUNT) Alleges that Madoff gave false statements to the Securities and Exchange Commission. Penalty: 5 years

PERJURY (1 COUNT) Alleges that Madoff gave false testimony to the SEC under oath in 2006. Penalty: 5 years.

FALSE FILING (1 COUNT) Alleges that Madoff filed false documents with the SEC in 2007. Penalty: 20 years

THEFT FROM AN EMPLOYEE BENEFIT PLAN (1 COUNT) Alleges that Madoff stole $10 million in funds from pension plans of 35 labor unions. Penalty: 5 years.

Sources: Federal court records, U.S. attorney's office

Source: NewsDay

Four arrested in FBI, ATF raid

Money laundering, machine guns, and a neighborhood in lockdown as an army of federal agents storm a local house.

The search for evidence lasted all day and involved assistance from ATF agents and the bomb squad. News 3'sSteve Crupi reports that four men are now in custody, facing charges that include money laundering and the illegal possession of machine guns.

Gunther Circle, normally a quiet cul-de-sac near Charleston and Durango, was all abuzz as a raid was underway. Neighbors say they were stunned Thursday morning when the FBI and ATF swarmed their street and made an announcement directed at the people who were inside the house.

"(They were) screaming out 'this is the FBI - come out with your hands up or we will break down the doors,'" recalls one resident.

Police have confirmed that the 67-year-old owner of the home is one of the four men arrested. His neighbors say he is known by nearly everyone on the street for his angry rants against the government and his affinity for weaponry.

"(I) think I heard something about some hand grenades or something," says one neighbor. "(I've heard) that he has rifles and is kind of weird."

For ten hours, a thorough search of the house continued and bystanders watched as federal agents carried away multiple high-powered weapons. A bomb squad was present as well, but authorities would not comment regarding what evidence they have discovered.

Federal indictments unsealed Thursday afternoon describe a lengthy investigation into alleged check fraud, money laundering, tax evasion, and weapons charges. One indictment chronicles an investigation involving well over $1 million-worth of cash.

The four suspects are expected to appear in federal court Friday.

Source: MSNBC

Brits looking for possible Madoff money laundering

British fraud investigators are probing the activities of accused Wall Street scammer Bernard Madoff's London office for possible money laundering, a law enforcement source said yesterday.

The investigation is being carried out by the British government's Serious Fraud Office, one of a number of inquiries under way by that agency into Madoff's alleged $50-billion Ponzi scheme, said the source, who didn't want to be identified.

A spokesman for the SFO, which is empowered to investigate a wide range of financial crimes in Britain, didn't want to comment about the agency's Madoff investigations. The SFO put out a general statement in January saying it was looking into Madoff's actions in Britain after getting a report from a court-appointed liquidator.

Ira Sorkin, Madoff's defense attorney, declined to comment yesterday.

It is not unusual in cases such as Madoff's, involving international clientele and massive losses sustained by investors, for possible money laundering to be investigated. One British private investigator said money laundering statutes in Britain are similar to those in the United States, defining money laundering as attempts to hide the proceeds of crimes or disguise their illicit origin. Legal experts believe federal prosecutors in Manhattan are also looking at money laundering as a possible charge against Madoff.

Madoff Securities International Ltd. had offices in London's tony Mayfair section, not far from the U.S. Embassy. After Madoff was arrested in December, British regulators moved through the courts to put the London operation into liquidation.

The company is now going through proceedings in the London High Court to gather assets and close the company. British court documents said that liquidators are empowered to seek any funds held in accounts with Barclays Bank Plc or brokerage accounts at Barclays Capital.

U.S. investigators have said that in 13 years of activity there are no records that show any securities trading done by Madoff's investment service despite representations to thousands of investors that their portfolios were earning steady returns. U.S. investigators have alleged that Madoff's suspected Ponzi scheme floated billions of dollars through his companies.

Lee Richards, who served as a receiver for Madoff's overseas companies in connection with a Securities and Exchange Commission lawsuit, said in federal court filings last month that he was able to trace two transfers totaling $194 million from Madoff Securities International to Madoff's New York company last November.

Madoff, who remains under house arrest in Manhattan on $10-million bail, has a scheduled court date a week from today, when prosecutors must either indict him, announce a plea bargain or adjourn the case.

Source: News Day

Indonesia: Police arrest two linked to money laundering syndicate

Police said Thursday they had arrested two people linked to international money laundering crimes on the Internet.

"The suspects were arrested two days ago in Medan *in North Sumatra*," National Police chief of criminal investigation division Com. Gen. Susno Duadji told The Jakarta Post.

"They are suspected of committing fraud via the Internet," he added.

Tempo Interaktif news portal identified the suspects as Hendrianto, a 45-year old Indonesian citizen and Singaporean Yap Kok Yong Carlson, 30, who were swooped on at the Swiss Bell Hotel in Medan.

Susno said the police were still pursuing four other members of the syndicate, namely Andreas Nicholas, a UK national, Ricard Pereira of Singapore, Phanos Tenizes of Cyprus and Christanto of Indonesia.

Susno said the four fugitives were already on an international wanted list of criminals.

"We are cooperating with the British Interpol to nab Andreas," he told tempointeraktif.com earlier Thursday.

The investigation, Susno said, began when the Austrian Embassy received a report from one of its citizens, Emmeran Fischer, who had fallen victim to the syndicate.

Fischer, Susno said, saw an ad-vertisement for cheap electronic goods at www.alibaba.com. On Dec. 8, 2008, Fischer met with the suspects at the MMTC Warehouse, on Jl. Williem Iskandar No. B-20 in Pancing, Medan.

Their transaction involved 32,000 units of electronic goods, including 5,000 Nintendo Wiis, 5,000 Nintendo NHL Games, 5,000 Nintendo Pro Evolution Games, 5,400 Sony PS3s, and 800 Apple iPhones.

"The transaction had a value of around US$1 million," said Susno. Fischer transferred the money to Bank Mega's branch in Batam, through the JP Morgan Chase Bank in New York.

The delivery was made to company named Anugerah Jaya Perkasa. However, when the delivery deadline came around on Dec. 20, 2008, the purchased goods never arrived in Vienna, Austria.

The offenders claimed bad weather had impeded the delivery, and requested more money to send the goods by sea.

"The victim then sent an additional $900,000 for the delivery," Susno said. "But the promise was still not upheld."

Following leads from the report, the police went to the warehouse and found two boxes containing thousands of packages.

However, when the packages were thoroughly searched, police revealed they contained nothing more than bricks and paper.

"Only three packages contained electronic goods and they were the samples used during the initial transaction," he said.

The police and the Report and Financial Transaction Analysis Center (PPATK) are currently investigating a possible money laundering operation through three bank accounts belonging to the suspects.

The banks involved Panin Bank's branch in Medan, Bank Niaga's branch in Medan, Bank Mega's branch in Medan and DBS Bank in Singapore

Source: The Jakarta Post