Money Laundering Scheme Lands Kazakhstani National in Hot Water
Alexey Li, a 21-year-old citizen of Kazakhstan, pleaded guilty to aiding and abetting money laundering before U.S. District Judge Ewing Werlein, Jr. in a ‘hack and dump’ scheme that caused over $400,000 in losses.
The indictment, filed in the Southern District of Texas in December 2011, charges that Li agreed to launder funds generated by a sophisticated stock scheme. Li’s co-conspirators allegedly illegally accessed brokerage accounts to engage in a stock fraud scheme.
The scheme involved purchasing borrowed shares of stock at above-market prices from the defendants’ personal brokerage accounts. Li’s co-conspirators then repurchased the borrowed shares at the considerably lower market price, returned the borrowed shares to the stock lender, and claimed as profit the difference between the market price and the inflated price paid by the compromised victim accounts.
Li will face a maximum penalty of 10 years in prison and a $250,000 fine at sentencing. This case was investigated by the FBI, with the Computer Crime and Intellectual Property Section in the Justice Department’s Criminal Division and the Southern District of Texas handling the prosecution.
Aiding and abetting money laundering is a serious offense, and Li’s actions have resulted in significant financial losses for victims. The outcome of this case serves as a reminder of the consequences of engaging in such illicit activities.
Li’s plea and impending sentencing highlight the importance of vigilance in the financial industry and the need for robust security measures to prevent such schemes. The case also underscores the FBI’s commitment to investigating and prosecuting financial crimes.
Related Federal Cases
- Sameer Sami Rasheed Al Salman, Unlicensed Money Transmitting, Texas 2023 · Texas
- Mekayda D. Jones, Advance Fee Fraud and Money Laundering, Texas 2023 · Florida
- Doug McKelvey, Money Laundering, Texas 2022 · Texas
- Feliciano Quintanar-Hernandez, Bulk Cash Smuggling, Texas 2024 · Louisiana
- Kamario Thomas, Conspiracy to Commit Wire Fraud and Money Laundering, Georgia 2023 · Georgia
Key Facts
- State: Texas
- Category: Financial Crimes
- Source: DOJ Press Release â†â€â€
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