Money Mules & Money Laundering
A Money Mule is a person who transfers money acquired illegally in person, through a courier service or electronically, on behalf of others. He/She is paid with a small percentage of the money transferred from the account of the mule to the scam operator.
Most of the Money Mules are "recruited" online, after being misled to think that they are being employed legitimately, while what they do is transfer money illegally. By using accounts of “Money Mules,” the cybercrooks effectively reduce the chances the police have to track a transaction to the actual crook.
Criminals use witting or unwitting subjects as the middleman in these financial transactions. This is Money Laundering. Money laundering is the concealing of the source of money obtained illegally by passing it through what appears to be legal transactions such as bank transfers or commercial transactions. This allows the criminal to obtain money through channels that make it more difficult for law enforcement to track. Just the process of being paid to forward money by a non-financial institution is illegal. The taking money obtained in a criminal action such as elder financial fraud is the felony crime of Money Laundering.
Investigators who routinely investigate these types of scams have found that they often originate outside of the country. Consequently, the scammers utilize Money Mules to facilitate the scams and move the money and illicit goods to them. The Money Mules move stolen money through bank accounts, Money Grams, and other forms of currency trade.
The FBI, Department of Homeland Security, and the Department of Justice as well as local law enforcement have focused on successfully prosecuting these money mules.
https://www.953mnc.com/2021/02/16/bbb-warns-about-a-romance-scam-that-could-land-you-in-hot-water/
https://www.bbb.org/globalassets/local-bbbs/st-louis-mo-142/st_louis_mo_142/studies/fall-in-love-go-to-jail-bbb-report-on-how-some-romance-fraud-victims-become-money-mules-final-02-09-2019.pdf
https://www.justice.gov/opa/pr/justice-department-announces-landmark-money-mule-initiative
Most of the Money Mules are "recruited" online, after being misled to think that they are being employed legitimately, while what they do is transfer money illegally. By using accounts of “Money Mules,” the cybercrooks effectively reduce the chances the police have to track a transaction to the actual crook.
Criminals use witting or unwitting subjects as the middleman in these financial transactions. This is Money Laundering. Money laundering is the concealing of the source of money obtained illegally by passing it through what appears to be legal transactions such as bank transfers or commercial transactions. This allows the criminal to obtain money through channels that make it more difficult for law enforcement to track. Just the process of being paid to forward money by a non-financial institution is illegal. The taking money obtained in a criminal action such as elder financial fraud is the felony crime of Money Laundering.
Investigators who routinely investigate these types of scams have found that they often originate outside of the country. Consequently, the scammers utilize Money Mules to facilitate the scams and move the money and illicit goods to them. The Money Mules move stolen money through bank accounts, Money Grams, and other forms of currency trade.
The FBI, Department of Homeland Security, and the Department of Justice as well as local law enforcement have focused on successfully prosecuting these money mules.
https://www.953mnc.com/2021/02/16/bbb-warns-about-a-romance-scam-that-could-land-you-in-hot-water/
https://www.bbb.org/globalassets/local-bbbs/st-louis-mo-142/st_louis_mo_142/studies/fall-in-love-go-to-jail-bbb-report-on-how-some-romance-fraud-victims-become-money-mules-final-02-09-2019.pdf
https://www.justice.gov/opa/pr/justice-department-announces-landmark-money-mule-initiative
Mules for India. Good News.
A couple was sentenced for laundering over $500,000 on behalf of India-based phone scammers. They were arrested on charges of laundering $40G in a Social Security phone scam. From Fox News
https://www.justice.gov/usao-ndga/pr/couple-sentenced-laundering-over-500000-behalf-india-based-phone-scammers
A couple was sentenced for laundering over $500,000 on behalf of India-based phone scammers. They were arrested on charges of laundering $40G in a Social Security phone scam. From Fox News
https://www.justice.gov/usao-ndga/pr/couple-sentenced-laundering-over-500000-behalf-india-based-phone-scammers
Woman sentenced to 24 months for money Laundering Good News
Shanelle Bailey, 23, a Jamaican-born women living in Provo, Utah, was sentenced yesterday by U.S. District Judge Rosemary Marquez to 24 months in prison. Bailey previously pleaded guilty to Conspiracy to Commit Money Laundering.
Bailey participated in a scheme where Jamaican-based scammers called elderly victims in the United States, claiming the victims had won a lottery. To receive their winnings, the victims were told they must first pay money for taxes and fees. Bailey’s role in this scheme was to launder the fraudulent proceeds for fellow co-conspirators in Jamaica. The loss suffered by the victims exceeded $600,000.
As part of her sentence, Bailey will also be required to pay restitution in the amount of $80,850 to the victims in the case.
The U.S. Attorney’s Office encourages the public to be wary of similar scams and to verify with law enforcement and family members before sending money after a phone solicitation.
The Internal Revenue Service – Criminal Investigation, the Federal Trade Commission, the United States Postal Inspection Service, the Federal Bureau of Investigation, Homeland Security Investigations, and the Pima County Sheriff’s Department conducted the investigation in this case. The U.S. Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
Source: U.S. Attorney's Office for the District of Arizona, https://www.justice.gov/usao-az/pr/woman-sentenced-24-months-laundering-funds-lottery-fraud-scheme-targeting-elderly?utm_source=govdelivery
Shanelle Bailey, 23, a Jamaican-born women living in Provo, Utah, was sentenced yesterday by U.S. District Judge Rosemary Marquez to 24 months in prison. Bailey previously pleaded guilty to Conspiracy to Commit Money Laundering.
Bailey participated in a scheme where Jamaican-based scammers called elderly victims in the United States, claiming the victims had won a lottery. To receive their winnings, the victims were told they must first pay money for taxes and fees. Bailey’s role in this scheme was to launder the fraudulent proceeds for fellow co-conspirators in Jamaica. The loss suffered by the victims exceeded $600,000.
As part of her sentence, Bailey will also be required to pay restitution in the amount of $80,850 to the victims in the case.
The U.S. Attorney’s Office encourages the public to be wary of similar scams and to verify with law enforcement and family members before sending money after a phone solicitation.
The Internal Revenue Service – Criminal Investigation, the Federal Trade Commission, the United States Postal Inspection Service, the Federal Bureau of Investigation, Homeland Security Investigations, and the Pima County Sheriff’s Department conducted the investigation in this case. The U.S. Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
Source: U.S. Attorney's Office for the District of Arizona, https://www.justice.gov/usao-az/pr/woman-sentenced-24-months-laundering-funds-lottery-fraud-scheme-targeting-elderly?utm_source=govdelivery