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Bank Secrecy Act Records “Extremely Helpful” in Tracing Proceeds from Fraudulent Venture Capital Scheme

In late 2005, two individuals pleaded guilty to running a scheme to defraud hundreds of investors out of millions of dollars through phony pre-initial public offering stock sales. The pair claimed they worked for a venture capital firm that was underwriting a public stock offering for a company…

Owner of Service Company Sentenced in Tax Evasion Scheme

The owner of a service company was sentenced to three years in prison and two years supervised release following a guilty plea to structuring financial transactions to evade reporting requirements. An officer of the company pleaded guilty to filing a false tax return and was sentenced to 18…

SAR Reports Structuring by Unlicensed Msb

ICE agents and analysts in a state in the Southwest developed information from a SAR that an out-of-state business was structuring deposits of large sums of cash and was operating as an unlicensed MSB. During a two-month period, this business made outgoing wire transfers totaling approximately $…

Suspicious Activity Reports Detail Transactions in Mortgage Fraud Scheme

A federal judge has ordered more than 24 years of prison time for a former loan officer who was found guilty on all eight counts of an indictment charging conspiracy, bank fraud, wire fraud, and money laundering. Several financial institutions identified unusual transactions related to the…

SAR Referral Leads to the Discovery of a $100 Million Mortgage Fraud and Foreclosure Rescue Scheme

Investigators uncovered a large-scale mortgage fraud scheme that originated from a SAR filed on a subject, who turned out to be a victim of the fraud scheme. In addition to filing the SAR, the filing institution also notified the district attorney's office, which opened the investigation and…

BSA Documents Lead to Repatriation & Seizure of over $9 Million Generated by Illegal Internet Pharmacy

In 2005, a federal task force initiated a 2-year multi-agency investigation against an online pharmaceutical distribution network, resulting in indictments against 18 individuals. The investigation was based on information received from a cooperating witness, who alleged that a pharmaceutical…

Local Municipality Case Example (SARs/CTRs Lead to Asset Forfeiture)

In early 2012, FinCEN conducted outreach to all of its state and local law enforcement partners, and asked for cases where FinCEN data played a useful role in their investigations. Below, in their own words, is an example of how FinCEN's stakeholders use FinCEN data. It has been edited only for…

Business Accused of Structuring

Immigration and Customs Enforcement conducted an investigation based on a number of Suspicious Activity Reports involving a licensed money services business. The owners and operators of the money services business conspired with unlicensed money remitters (couriers) to commit criminal acts. The…

Proactive Bank Secrecy Act Searches Lead to Crackdown on Unlicensed Money Remitters

An investigator in the District Attorney’s office was conducting a proactive search in the BSA database for illicit activity and found a SAR filed on a business thought to be operating as an unlicensed money remitter. The office opened an investigation on the subjects of the SAR and obtained…

SAR Suspect Convicted of Forging U.S. Treasury Checks

A bank filed a SAR reporting the deposit of U.S. Treasury checks to an account held by a deceased customer (a retired government employee) receiving monthly retirement benefits. The bank determined that its customer died in 1998. For two and one half years following the customer’s death, her…