Fresno Businessman Krishen Sauble Iyer Pleads Guilty to Money Laundering Scheme

FRESNO, Calif. — In a stunning turn of events, Krishen Sauble Iyer, 36, the owner of several insurance sales and brokerage firms in Fresno, has pleaded guilty to conspiring to launder money, as announced by U.S. Attorney Phillip A. Talbert.

Iyer’s conspiracy involved S.V., a known marijuana trafficker. According to court documents, Iyer utilized his business, Health Shield, to wash the profits of S.V.’s drug trade. They orchestrated a scheme where S.V. funneled the illegal proceeds into Health Shield, which were then returned to S.V. as salary, giving the appearance of legitimacy.

As part of the fraudulent arrangement, Iyer issued two Form 1099s, falsely claiming he paid S.V. $111,952 in 2013 and $164,000 in 2014. In reality, S.V. paid Iyer a commission for facilitating the transfer of funds.

This investigation was jointly conducted by the Drug Enforcement Administration, the IRS Criminal Investigation, and the Fresno Police Department. Assistant United States Attorneys Grant B. Rabenn and Jeffrey A. Spivak are handling the prosecution.

Scheduled to be sentenced on April 24, 2017, Iyer faces a daunting maximum penalty of 20 years in federal prison and a $500,000 fine. However, the actual sentence will depend on the court’s discretion after considering applicable factors and the Federal Sentencing Guidelines.