Money Laundering is a complex type of fraud, which involves a conglomerate of participants, resources, and circumstances. It’s a criminal activity classified as a white-collar offense with a rich history and global cases. It is wrapped around illegal financial transactions with the objective to hide the criminal nature of the income. Sometimes this term is applied to other aspects of financial crimes, like violation of the securities, digital currencies, credit cards, traditional currency, terrorism financing and evasion of international sanctions. The penalties for these felonies vary according to the level of severity.
United States Federal Law does everything in its power in order to combat the continuing growth of criminal organizations. One of the countermeasures initiated in 1970, is an Act relating to the control of organized crime in the United States, also known as RICO (OCCA).
RICO stands for Racketeer Influenced and Corrupt Organizations Act. This term applies to a Federal Law, designed to combat organized groups running illegal business (i.e. racketeering), which may include the importation and sale of illegal drugs, gambling, money laundering, prostitution rings, bribery, drug trafficking, slavery, or any act involving murder, kidnapping, arson, robbery, extortion, dealing with obscene matter, terrorism, bankruptcy or security fraud, helping aliens to enter illegally the country, dealing with controlled substance, etc. Continue reading
Probably everyone has heard about federal and state crimes but the majority of people doesn’t differentiate them. Let’s make it clear and define both of the terms.
Federal crime is an illegal act that is made against U.S. federal legislation and is prosecuted by federal criminal law. Federal crimes are investigated by:
- Internal Revenue Service (IRS)
- Federal Bureau of Investigation (FBI)
- Drug Enforcement Administration (DEA)
When federal cases go to trial they are prosecuted by United States Attorney in each judicial district in accordance with already established laws. Federal crimes can range from illegally downloading songs from Internet to RICO, drug trafficking, corruption or immigration crimes.
Criminal justice system is meant to control crime and prosecute those who violate laws. Asking yourself how does the criminal system work? Well, a case begins with:
- investigation of the crime by the law enforcement officers
- gathering evidence to identify the perpetrator and use it against them
- making an arrest
- examination of the evidences by the court and determining whether the defendant is guilty or not
- if guilty, the convicted party will go to prison or receive probation.
Compliments of Mark Anderson of Andertoons
On August 6, 2013, a Criminal Complaint was filed against Michigan Oncologist Dr. Farid Fata in Federal Court in the county of Oakland in the Eastern District of Michigan. The Defendant was charged by the U.S. Government with Healthcare Fraud in violation of 18 U.S.C. 1347.
In an affidavit in support of the Complaint, Special Agent Brian Fairweather who was employed by the Federal Bureau of Investigation (“FBI”) alleges the following violations:
- Healthcare Fraud – 18 U.S.C. 1347
- Distribution of Controlled Substances – 21 U.S.C. 841(a)(1)
- Money Laundering – 18 U.S.C. 1956 and 18 U.S.C. 1957
- Payment or receipt of Healthcare Kickbacks – 42 U.S.C. 1320a-7(b)(1)(A) and 42 U.S.C. 1320a-7(b)(2)(A)
More specifically, the Complaint alleges the following:
- Administration of unnecessary chemotherapy to patients in remission
- Deliberate misdiagnosis of patients having cancer to justify unnecessary cancer treatment
- Administration of chemotherapy to end-of-life patients who will not benefit from the treatment
- Deliberate misdiagnosis of patients with cancer to justify expensive testing
- Fabrication of other diagnoses such as anemia and fatigue to justify unnecessary hematology treatments
- Distribution of controlled substances to patients without medical necessity
Online currency exchange, Liberty Reserve, is accused in laundering $6 billion. It is a central hub for criminals trafficking in everything from stolen identities to child pornography, federal prosecutors in New York said.
According to Preet Bharara, the United States attorney in Manhattan, and other law enforcement officials, it is the largest online money-laundering case in history. The cyber money-laundering scheme included 1 million users worldwide, with more than 200,000 users in the US. Over seven years, 55 million transactions were conducted through Liberty Reserve, the prosecutors said.
From 2006 to 2013, Liberty Reserve became one of the world’s most widely used digital currency services but it appeared to be a “financial hub of the cybercrime world”. The profits from criminal activities were processed anonymously and ranged from identity theft and credit card fraud to computer hacking, investment fraud, child pornography, and drug trafficking.
A recent FT article written by Shannon Bond states that two of the world’s biggest on-line gambling companies: Poker Stars and Full Tilt Poker are to refund hundreds of millions of dollars to the Internet poker players.
The Department of Justice said on Tuesday it had settled civil fraud charges with Poker Stars and Full Tilt Poker. The companies are two aims of a recent crackdown on illegal gambling and money laundering.
Poker Stars are charged $731m. The company will return the money to the customers in the USA and abroad. It will also acquire assets and debts of its insolvent rival, Full Tilt Poker.
The US government will receive $547m which will go for reimbursing Full Tilt customers in the US. Full Tilt international players will get a refund of $184m.