Milwaukee Man Guilty of Laundering $1.2M in BEC Fraud Schemes

Grimy Times Exclusive: A Milwaukee man has been found guilty of laundering over $1.2 million in proceeds from Business Email Compromise (BEC) fraud schemes. Corey Lee, Sr., 52, of Milwaukee, Wisconsin, was convicted of one count of conspiracy to commit money laundering, two counts of concealment money laundering, and two counts of engaging in financial transactions with money derived from criminal activity.

According to the Department of Justice, Lee and his co-conspirators laundered the funds by transferring money between and among various bank accounts, withdrawing large amounts in cash, and transferring some of the money to others in an effort to disguise the nature, location, source, ownership, and control of the fraud proceeds. The evidence presented at trial revealed that four businesses fell victim to the BEC schemes, resulting in over $1.2 million in stolen funds.

“Mr. Lee consciously and repeatedly laundered funds he knew were illicitly obtained by others. His actions helped cyber criminals victimize businesses by laundering money that was fraudulently obtained, making it more difficult for the victims and law enforcement to track the money,” said U.S. Attorney Gregory J. Haanstad. “We are committed to working with our federal, state, and local partners to hold everyone involved in these schemes accountable for their actions.”

The case was investigated by the Criminal Investigation Division of the Internal Revenue Service. Assistant United States Attorneys Benjamin Proctor and Peter Smyczek are prosecuting the case. Lee faces a maximum prison sentence of 20 years each for Counts 1, 2, and 4, and 10 years imprisonment each for Counts 5 and 6.

BEC schemes, a form of cybercrime, involve using false and misleading emails to fraudulently induce victims to transfer funds to bank accounts controlled by the fraudsters and their accomplices. The schemes are becoming increasingly common, with victims losing millions of dollars worldwide.

The conviction is a significant blow to cybercrime operations in the region. “This case demonstrates the commitment of IRS Criminal Investigation in unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money,” stated Chicago Field Office Special Agent in Charge Justin Campbell.