Unpub. BIA Remand on Ariz. Money Laundering: Matter of Ruiz-Estrada

"While we find no cause to disturb the Immigration Judge's analysis of the record of conviction for the purpose of determining whether the respondent's conviction involved the requisite level of "scienter," as discussed by the Attorney General in Matter of Silva-Trevino, 24 I&N...

Excerpts From The Aug. 15, 2013, Bender’s Immigration Bulletin

Washington Supreme Court Bars Certain Uses of Immigration Status On July 10, 2013, the Washington Supreme Court updated its legal ethics rules to prohibit attorneys from referring to an individual’s immigration status to intimidate, coerce, or prevent him or her from participating in a civil...

Florida Lawyer Gets 3-Year Sentence For Helping Ponzi Schemer's Wife Hide $1 Million in Jewelry

A Florida lawyer will spend the next three years in federal prison for assisting the wife of convicted Ponzi schemer Scott Rothstein hide more than $1 million in jewelry - including a 12.08 carat yellow diamond ring valued at nearly $500,000. Scott Saidel, 46, received the sentence from U.S. District...

Banks on the Financial Fraud Hot Seat, Deputy Attorney General Warns at Money Laundering Enforcement Conference

Financial fraud lawsuits against banks and bank settlements with law enforcement and regulatory agencies over allegations of financial fraud seem to be a growing part of what we discuss at the Financial Fraud Law Blog and the Financial Fraud Law Report . For example, LIBOR resolutions with Rabobank,...

Does a Ponzi Scheme Finding Preclude Money Laundering Charges?

In U.S. v. Simmons , 2013 U.S. App. LEXIS 24617 (4th Cir. Dec. 11, 2013) [ an enhanced version of this opinion is available to lexis.com subscribers ], the Fourth Circuit overturned convictions on money laundering charges in connection with money that the defendant moved as part of his Ponzi scheme....

Federal Prosecutor Matthew Axelrod Joins Plaintiffs’ Law Firm, Cohen Milstein Sellers & Toll

Most federal prosecutors who move to private law firms use their government experience in financial fraud cases such as white collar crime, securities fraud, bank fraud, and money laundering to become defense lawyers. Matthew S. Axelrod, one of the highest-ranking career officials in the U.S. Department...

A Clue About #8 in Financial Fraud Law for the Year: Look at Bryan Cave’s Next Firm-Wide Leader

As the Financial Fraud Law Blog continues its countdown of the Top 10 in Financial Fraud Law for the year, we are going to begin with a clue: Bryan Cave. Give up? The clue is relevant to our Top 10 list because the international law firm has just named its next global chair: Therese D. Pritchard...

#1 in Financial Fraud Law: US Attorney Preet Bharara

When we here at the Financial Fraud Law Blog think about financial fraud law, it does not take long before we think about the U.S. Attorney for the Southern District of New York, Preet Bharara. In a little over four years as U.S. Attorney – following his unanimous confirmation by the Senate –...

Oil Services Company’s Ex-General Counsel Pleads Guilty to Bribery and Fraud

Two former chief executive officers of PetroTiger Ltd. – a British Virgin Islands oil and gas company with operations in Colombia and offices in New Jersey – have been charged for their alleged participation in a scheme to pay bribes to foreign government officials in violation of the Foreign...

$28 Million of Silk Road’s Bitcoins Are Forfeited, US Attorney Says

Approximately 29,655 Bitcoins, worth approximately $28 million, that had been seized from the Silk Road server have been forfeited to the U.S. government in what federal prosecutors called the largest ever forfeiture of Bitcoins. Preet Bharara, the U.S. Attorney for the Southern District of New York...

Real Estate Business Owners And Title Company Executive Indicted In Multi-Million Dollar Mortgage Fraud Scheme

Federal authorities have arrested three business owners and a title company executive in connection with a mortgage fraud scheme that involved approximately 800 real estate properties and about $45 million in loans. The two-count indictment charges 58–year-old Stephen Mark Hilliard, owner of...

Prosecutors’ Rush to Join Private Law Firms Accelerates

The wave of financial fraud prosecutors joining private law firms is continuing – in fact, it appears to be accelerating. Consider that, in just the past couple of days, David Meister, who ran the enforcement unit at the Commodity Futures Trading Commission, joined Skadden, Arps, Slate...

Lawyer Gone Bad: Sentenced to Prison for Laundering Purported Stock Fraud Proceeds

Michael J. Scaglione, an attorney in Coral Gables, Florida, has been sentenced in federal court in Brooklyn, New York, to six months in prison, to be followed by four months of home detention with electric monitoring to be served during a two-year term of supervised release. As part of the sentence,...

Fuel for Crime, Corruption and Tax Evasion: US$68.9 Billion Flowed Illegally Into or Out of Emerging EU Economies

Nearly US$70 billion in illicit financial flows – the proceeds of crime, corruption, and tax evasion – flowed into or out of developing and emerging European Union member-states in 2011, according to newly released information from Global Financial Integrity (GFI). In conjunction with...

Ponzi Associate Jailed For "Mind-Boggling" Money Laundering Scheme

A New York man accused of playing a role in the $425 million Ponzi scheme perpetrated by Nicholas Cosmo had his bail revoked by a New York federal judge who called "mind-boggling" his efforts to hide over $1.7 million in illicit scheme proceeds. Anthony Ciccone, 39, was ordered into custody...

Former Wilmington Trust Officer Charged with Bank Fraud, Bribery, and Money Laundering

Brian D. Bailey, a former officer for the Wilmington Trust Corporation, has been charged in a 14 count indictment with nine counts of bank fraud and one count each of conspiracy to commit bank fraud, conspiracy to commit bank bribery, corruptly receiving a gift for procuring a loan, corruptly providing...

Corporate Corruption Case Charged With Swiss Bank Accounts to Hide the Loot

According to a DOJ press release here (emphasis supplied by JAT): Asem Elgawhary, the former principal vice president of Bechtel Corporation and general manager of the Power Generation Engineering and Services Company (PGESCo), was indicted by a grand jury in Maryland on charges that he defrauded...

French Citizen Pleads Guilty to Obstructing FCPA Investigation

Last week new FCPA Chief Patrick Stokes announced that the prosecution of individuals would be a priority. This point has become a recurring theme not just in FCPA cases where the international nature of the actions can pose difficulties, but in other actions. Yesterday the DOJ announced a guilty...

Cadwalader: AML Guidance Issued for Banks Seeking to Service Marijuana-Related Businesses

On February 14, 2014, both the Department of Justice (the “Department”)[ 1 ] and the Financial Crimes Enforcement Network (“FinCEN”)[ 2 ] of the Department of the Treasury issued anti-money laundering (“AML”) guidance relating to financial crimes involving marijuana...

Pharmacy Preyed On HIV Patients While Fraudulently Billing Medicaid for Millions, Prosecutors Assert

Three men have been arrested on charges that they defrauded government-funded health care programs by buying back prescriptions and billing Medicaid as if the medication had been dispensed. The two owners of 184th Street Pharmacy in the Bronx, along with the supervising pharmacist, targeted financially...

The Role of Hawala and Other Similar Service Providers in Money Laundering and Terrorist Financing

In December 2013 the Financial Action Task Force (“FATF”) published a report on the role of Hawala and other similar service providers (“HOSSPs”) in money laundering and terrorist financing. Many countries view HOSSPs as essential to unbanked countries with limited financial systems...

DOJ Alleges Wide-Ranging Conspiracy to Bribe Indian Officials to Secure Mining Licenses

This article was reprinted with permission from FCPA Professor Yesterday the DOJ announced the unsealing of a criminal indictment charging six individuals “with participating in an alleged international racketeering conspiracy involving bribes of state and central government officials in India...

2nd Circuit Reinstates Smuggling, Racketeering Claims Against R.J. Reynolds

NEW YORK — (Mealey’s) The European Community (EC) is an agency or instrumentality of its member states for the purpose of diversity jurisdiction in U.S. federal courts, and allegations of cigarette smuggling, racketeering and money laundering brought by the EC against the corporate parent...

Investment Manager Pleads Guilty After Bilking Institutions, Others Out of Billions

The investment manager and principal of WG Trading Company, LP and WG Trading Investors, Stephen Walsh, pleaded guilty to two counts of securities fraud. In entering the plea Mr. Walsh agreed to forfeit $50,743,779 which represents the amount he misappropriated and by which he personally profited from...

BSA/AML Compliance – The Importance of Currency Transaction Reports (CTRs)

Currency Transaction Reports have been around since the Money Laundering Control Act of 1986, and along with its stricter Suspicious Activity Report progeny implemented in 96, have greatly contributed to a financial institution’s compliance workload. Some argue they’re ineffective and that...