Subhash Jay, Money Transmission and Tax Scheme, California 2018

A South San Francisco resident has been sentenced to 30 months in prison for operating an unlicensed money transmitting business and filing false tax returns.

Subhash Jay, 59, of South San Francisco, was sentenced by the Honorable Charles R. Breyer, Senior United States District Judge, on December 12, 2018.

Jay pleaded guilty to one count of operating an unlicensed money transmitting business and one count of filing false tax returns on March 23, 2018.

According to the plea agreement, Jay admitted to operating a money transmitting business known as Force Services, Inc., without obtaining required state or federal licenses.

Jay caused two domestic bank accounts held in the name of Force Services to receive international wire transfers on behalf of a client with an aggregate value of at least $4,515,236 during 2010 through 2014.

Jay then forwarded most of those funds to the client, but retained $817,734 as a commission.

In addition to the prison term, Judge Breyer ordered Jay to pay restitution of $409,871 and serve a three-year period of supervised release.

The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation, Homeland Security Investigations, and the Bureau of Industry and Security.

Assistant United States Attorney Michael G. Pitman is prosecuting the case.

Source: https://www.justice.gov/usao-ndca/pr/south-san-francisco-resident-sentenced-prison-money-transmission-and-tax-scheme