Illicit Money Transmitters Admit Criminal Scheme to Funnel Money to Nevada Casino
In a recent development, two individuals and their unlicensed money transmitting business have confessed to engaging in a criminal scheme to funnel illicit funds to a casino in Nevada. The individuals, Francisco Alberto Garza-Vargas and Ricardo Najera-Almaguer, both Mexican nationals, admitted in federal court that they helped foreign gamblers evade detection from law enforcement and regulators by secretly transferring money through the U.S. financial system. The duo conducted over 115 illegal transfers, totaling approximately $8,129,664, using bank accounts controlled by the casino industry. This case adds to a series of investigations into money laundering and unlicensed money transmitting, with criminal penalties amounting to over $7.5 million. The defendants have been ordered to pay fines and financial penalties totaling $3,198,397.
Illicit Money Transmitters Admit Criminal Scheme to Funnel Money to Nevada Casino
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Summary
Two Mexican nationals and their unlicensed money transmitting business have admitted in federal court to participating in a criminal scheme to move money covertly through the U.S. financial system in order to avoid detection by U.S. and foreign law enforcement and regulators. The defendants, Francisco Alberto Garza-Vargas and Ricardo Najera-Almaguer, along with the Mexican corporation Carma de Monterrey SA de CV, conspired to operate an unlicensed money transmitting business on behalf of foreign patrons of the casino industry. The defendants conducted over 115 illegal transfers with bank accounts controlled by the casino industry, totaling approximately $8,129,664. The impact of this scheme includes the concealment of funds and sources, hindering investigations and violating anti-money laundering laws.
Background
Illegal money transmitting businesses operate outside of the regulated financial system and are used as a method to move funds illegally. In this case, the defendants were involved in transmitting money on behalf of foreign gamblers who wanted to avoid detection while gambling in the United States. The casino industry often contracts with agents who act as intermediaries between the casinos and high-rolling guests. These agents bring players to specific casinos and receive a commission in return. Money laundering regulations aim to prevent illicit funds from being transferred through the financial system, including the casino industry.
Defendants and Charges
The defendants in this case are Francisco Alberto Garza-Vargas and Ricardo Najera-Almaguer, both Mexican nationals, and the Mexican corporation Carma de Monterrey SA de CV. Garza-Vargas was a registered agent with the Nevada Gaming Commission, a position that allowed him to facilitate transactions between foreign patrons and the casino industry. The defendants have been charged with conspiracy to operate an unlicensed money transmitting business, which carries a maximum penalty of five years in prison and a $250,000 fine.
Details of the Criminal Scheme
The defendants used various methods to facilitate the illegal transfers of funds. Their unlicensed money transmitting business acted as a front to move money on behalf of foreign gamblers. They controlled several bank accounts that were used to transfer funds to casino-controlled accounts. These circuitous transfers helped patrons evade anti-money laundering laws and regulations. By not registering their business as a money transmitter, not maintaining an anti-money laundering program, and not filing the required reports, the defendants were able to conceal the sources of the funds.
The Impact of the Scheme
The criminal scheme conducted by the defendants involved over 115 illegal transfers, totaling approximately $8,129,664. This amount of money being moved covertly through the financial system has a significant impact on money laundering prevention efforts. The concealment of funds and sources hinders the ability of law enforcement and financial institutions to track and investigate illicit financial transactions. The scheme undermines the integrity of the financial system and poses a threat to national security.
Legal Proceedings and Penalties
During the court hearing, U.S. District Judge Dana M. Sabraw accepted the deferred prosecution agreements for Garza-Vargas and Najera-Almaguer, as well as the guilty plea of the corporation. The defendants have been ordered to pay criminal fines and other financial penalties totaling $3,198,397. The penalties imposed reflect the seriousness of the charges and the impact of the defendants’ actions on the financial system and anti-money laundering efforts.
Related Cases and Investigation
This case is part of a larger investigation into money laundering, unlicensed money transmitting, and other crimes. Fifteen defendants, including the defendants in this case, have already admitted wrongdoing, with associated criminal penalties exceeding $7.5 million. A related case involving defendant Juan Carlos Palermo, who operated his own unlicensed money transmitting business, resulted in him admitting to money laundering charges. Palermo conducted over 200 transfers with bank accounts controlled by multiple casino entities, totaling over $17.7 million on behalf of casino gambling patrons.
Prosecutors and Investigators
The case is being prosecuted by Assistant U.S. Attorneys Carl F. Brooker IV, Christopher Beeler, and Mark W. Pletcher. The investigation is being conducted by Homeland Security Investigations and the IRS Las Vegas Financial Crimes Task Force. These agencies work together to uncover and prosecute individuals and organizations involved in money laundering and other financial crimes.
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Other Charges and Cases
At this time, there is no information available regarding any additional charges or related cases connected to this criminal scheme.
Contact Information
For media inquiries, please contact Kelly Thornton, the Media Relations Director, at (619) 546-9726 or via email at Kelly.Thornton@usdoj.gov. For general inquiries, please contact the Southern District of California’s main office at the Federal Office Building, 880 Front Street, Room 6293, San Diego, California, 92101-8807.
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