Investigative Bulletin: Financial Asset Managers Indicted in $1.2 Billion International Money Laundering Scheme | Arent Fox Schiff


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Financial asset managers charged in $1.2 billion international money laundering scheme

On July 12, 2022, two financial asset managers from Switzerland and Argentina were indicted in the Southern District of Florida in connection with an alleged $1.2 billion scheme to launder money obtained with a Venezuelan energy company.

According to court documents, from around December 2014 until around August 2018, the asset managers conspired with others to launder the proceeds of an illegal scheme of corruption using the US financial system in addition to various international bank accounts. The asset managers allegedly laundered the illegal proceeds as part of a corrupt currency exchange scheme involving the bribery of Venezuelan officials.

The asset managers reportedly agreed to create the complex financial relationships necessary to launder more than $200 million in connection with the conspiracy, in addition to opening accounts for or on behalf of two or more Venezuelan public officials so that they may receive bribes.

The two asset managers have each been charged with one count of conspiracy to launder money and face up to 20 years in prison if convicted.

The DOJ press release is available here

Chicago doctor accused of submitting fraudulent claims to Medicare and private insurer

On July 12, 2022, an Illinois-based physician was charged in federal court with one count of healthcare fraud for allegedly submitting false claims to Medicare and a private insurer.

The doctor owned and operated a skin cancer treatment center in Lombard, Illinois, a suburb of Chicago. According to the DOJ, from 2015 to 2021, the doctor fraudulently obtained approximately $4.1 million from Medicare and a private insurer by submitting fraudulent claims stating that certain health care services, including removal procedures moles, had been provided to the patients, when the doctor knew that these services were not provided as stated in the claims. The DOJ also alleges that the doctor removed more moles from patients than was medically necessary, and provided notes and documents to employees to submit fraudulent claims for medically unnecessary procedures.

If convicted, the doctor could face a maximum sentence of 10 years in federal prison.

The DOJ press release is available here

Former city worker’s wife pleads guilty to conspiracy to steal COVID relief funds

On July 12, 2022, the wife of a former West Haven City employee pleaded guilty in U.S. District Court for the District of Connecticut to a conspiracy charge related to her role in a scheme to steal COVID relief funds to the city of West Haven.

According to court statements and court documents, the wife, along with her husband, who at the time of the conspiracy was an employee of the City of West Haven, conspired to misappropriate COVID relief funds that had been provided to the city. . The U.S. Attorney’s Office for the District of Connecticut alleged that between July 2020 and approximately October 2021, the husband submitted fraudulent bills to the city for services related to a youth violence prevention program and for expenses associated with COVID-19 youth violence, which listed fees for cleaning supplies, counseling services, meals and support groups for youth clinics, among others. The payment vouchers associated with these bills requested that the checks be sent directly to the wife rather than to the City of West Haven.

In total, the City made 16 payments to the wife, totaling approximately $147,776, which never provided any of the identified services to the City. The couple reportedly used the proceeds for their own personal benefit. The wife was arrested on February 18, 2022 and pleaded guilty to one count of conspiracy to commit wire fraud. Her husband was charged with related offences.

The DOJ press release is available here.

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