A Lakewood, New Jersey, business owner has been sentenced to 21 months in prison for operating an unlicensed money transmitting business.
Yisroel Malamud, 54, of Lakewood, New Jersey, previously pleaded guilty to an information charging him with running an unlicensed money transmitting business.
Between January 2010 and May 2013, Malamud maintained a retail storefront in Lakewood under the name “Beepers Plus.” Malamud received money from members of the public, deposited the funds into bank accounts that he maintained in the name of different entities, and then transmitted the money – determined to be more than $6 million – from those bank accounts to third-parties within the United States in accordance with the customers’ instructions, charging the customers a fee for this service.
New Jersey law provides that the operation of an unlicensed money transmission business is punishable as a felony. Federal law requires anyone conducting such a business to register the business with the Secretary of the Treasury. Malamud did not possess and failed to obtain a money transmitting license, nor did he register with the Secretary of the Treasury.
In addition to the prison term, Judge Thompson sentenced Malamud to three years of supervised release. Forfeiture will be determined at a later date.
The investigation was led by the FBI’s Red Bank Resident Agency under the direction of Acting Special Agent in Charge Bradley W. Cohen.
The government was represented by Eric W. Moran, Chief of the Criminal Division for the southern vicinages in the District of New Jersey.
Defense Counsel included Peter W. Till Esq., Springfield, New Jersey, and Stacy Ann Biancamano Esq., Chatham, New Jersey.
Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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