This past week, U.S. District Court Judge Kenneth Hoyt handed down a stiff sentence to Bobby Charles Lee Sr., a 66-year-old man from Deer Park, Texas, for operating an unlicensed money transmitting business.
Lee pleaded guilty to the crime on June 30 and was subsequently ordered to serve 33 months in federal prison. He will be followed by three years of supervised release, during which time he will be restricted from owning or controlling any company or bank account, and will have limited access to technology.
Lee will also be required to pay restitution to two victims in specific amounts to be determined. According to authorities, the scheme involved Lee allowing others to deposit and transfer funds into accounts he controlled, and accepting negotiable instruments others had mailed to him.
Lee’s scheme was brought to light after authorities flagged several transactions as suspicious or fraudulent, prompting banks to close multiple accounts linked to the scheme. In March 2024, Lee deposited a counterfeit $2.3 million U.S. Treasury check and used the proceeds to enrich himself and his spouse, including purchasing a Cadillac vehicle.
Authorities later seized the vehicle and recovered approximately $2.1 million that remained from the fraudulent funds. Lee was permitted to remain on bond and voluntarily surrender to a Federal Bureau of Prisons facility to be determined in the near future.
“At your age, you still have not come home to right,” Judge Hoyt told Lee during the sentencing hearing, questioning why Lee had not bothered to tell his family about his criminal case. The judge noted that Lee’s conduct was among the “most outrageous” he had seen in 37 years on the bench.
The investigation into Lee’s scheme was conducted by the IRS Criminal Investigation and Treasury Inspector General for Tax Administration, with assistance from the FBI and Deer Park Police Department. Assistant U.S. Attorneys Stephanie Bauman and Kimberly Ann Leo prosecuted the case with assistance from Kristine Rollinson of the Asset Recovery Section.
Lee’s actions are a stark reminder of the importance of complying with the law and registering financial businesses with the state. We urge all individuals and businesses to take heed of this case and ensure they are in compliance with all applicable laws and regulations.
Related Federal Cases
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- Angela S. George, Money Laundering Investigation, Washington DC, 2023 · Washington
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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