Milwaukee Man Sentenced for Laundering $1.2M in Business Email Scam Proceeds

MILWAUKEE, WISCONSIN – In a major blow to cybercrime, 52-year-old Corey Lee, Sr. of Milwaukee, Wisconsin, was found guilty of laundering over $1.2 million in proceeds from four business email compromise (“BEC”) schemes.

According to a statement released by the U.S. Department of Justice, the evidence presented at trial established that Lee and his co-conspirators laundered the funds between May 2018 and July 2019. The BEC schemes targeted four businesses, with Lee and his accomplices using false emails to induce victims to transfer funds to bank accounts controlled by the fraudsters.

Lee and his co-conspirators then laundered the funds by transferring the money between bank accounts, withdrawing large amounts in cash, and transferring some of the money to others. They also used some of the victim funds for personal expenses, including vacations and luxury cars.

“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.

Lee faces a maximum prison sentence of 20 years each for conspiracy to commit money laundering and engaging in financial transactions with money derived from criminal activity. The case was investigated by the Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorneys Benjamin Proctor and Peter Smyczek.

The conviction is a significant victory for law enforcement in their efforts to combat cybercrime and money laundering. As U.S. Attorney Haanstad noted, the case demonstrates the commitment of federal agencies to holding individuals accountable for their actions.

For additional information, contact Public Information Officer Kenneth Gales at Kenneth.Gales@usdoj.gov or 414-297-1700. Follow the Department of Justice on Twitter for the latest updates on cybercrime and money laundering cases.