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Archive for the ‘money laundering’ Category

Discount NY Continues To Pay For Money Laundering

Posted by familydynamics on December 24, 2007

The price being paid by Israel Discount Bank (TASE: DSCT) subsidiary Israel Discount Bank of New York for the settlement of the money laundering case continues to climb. Discount Bank’s financial report for the third quarter of 2007, implies that the cost will reach $46-47 million, spread over 2005-07. It is not yet clear whether it will be necessary to report a special provision in 2008, however the bank has consistently low-balled its estimates regarding the cost of the affair.

Under the settlement between Discount New York with the Banking Department of the State of New York and the Federal Deposit Insurance Corporation (FDIC), the bank paid a fine of $16.5 million to the New York State Banking Department, FDIC and Finance Crimes Enforcement Network, for which the bank made a provision in 2006. The bank also estimates the cost of implementing of the improvements and examinations at $16.1 million in 2006 and $11.4 million in January-September 2007, and an additional $2-3 million through the end of the year.


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Rabbi Indicted In Money Laundering Scheme

Posted by familydynamics on December 20, 2007

LOS ANGELES—The head of an Orthodox Jewish group was arrested along with several associates Wednesday, accused of operating a sophisticated tax fraud and money laundering scheme involving millions of dollars.Naftali Tzi Weisz, 59, identified as the Grand Rabbi of Spinka, faces federal charges including conspiracy, mail fraud and money laundering, according to a 37-count indictment returned Tuesday. He was expected to make an initial appearance in federal court in Los Angeles on Wednesday afternoon.

Authorities say Weisz helped solicit millions of dollars in contributions to five Spinka charitable groups by promising to secretly refund up to 95 percent of the donations. That way, the contributors could falsely claim higher tax deductions,

In some cases, donors received cash payments through an underground money transfer network involving business owners in Los Angeles’ jewelry district, prosecutors said. Contributors also were reimbursed through wire transfers from Spinka-controlled entities into accounts secretly held at a bank in Israel, prosecutors said.

Weisz is from Brooklyn, N.Y., where the charitable organizations are based.

Also indicted were his executive assistant, Moshe E. Zigelman, 60. Six of the seven charged in the case were taken into custody as federal agents conducted searches in Los Angeles and New York on Wednesday morning.

It was unclear whether the defendants had retained attorneys yet.

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Crooks Laundering Money Through ATM’s

Posted by familydynamics on December 18, 2007

We are all susceptible to being a pawn in a money laundering scheme. For example, so-called white-label ATMs can be used to launder money with alarming ease, leaving authorities struggling to track the dirty cash, says a federal watchdog agency.

The Financial Transactions and Reports Analysis Centre of Canada, better known as Fintrac, outlines a money-laundering scheme in a draft report prepared this year and obtained by The Canadian Press under the Access to Information Act.

The scam works like this: a white-label ATM operator loads it with ill-gotten – and traceable – cash. Over time, unknowing customers empty the machine, taking with them any trace of the dirty money. When the machine runs dry, it’s replenished with clean money.

What do you think of this scheme? 

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We Should All Be Concerned About “Money Laundering”

Posted by familydynamics on December 13, 2007

Money laundering is a serious crime that affects us all. It can fund terrorists’ activities as well as hide drug money. A money launderer can be someone you would least suspect. For example, a federal judge sentenced an Atlanta jeweler to six years in prison and ordered him to forfeit $1.6 million and a condo for his role in a money-laundering scheme.

Toros Seher, 38, of Alpharetta, was caught in a federal sting and indicted last year on charges of helping drug dealers hide their profits through purchases at Chaplin’s jewelry stores in Midtown’s Atlantic Station and at the Merchandise Mart/Atlanta Mart in downtown Atlanta from 1997 to 2006.

Money Laundering is a serious crime.

Seher knew the money came from drug trafficking, coached his clients on how to evade financial reporting laws and failed to report purchases exceeding $10,000 to the Internal Revenue Service as required by law, according to U.S. Attorney David Nahmias.

If you know of any business or individual engaged in the practice of money laundering, please report them to the appropriate authorities.

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