Justice Department Secures $5 Million in Major Money Laundering Case

In a landmark victory against international money laundering, the US Department of Justice has secured the forfeiture of over $5 million linked to a sophisticated Business Email Compromise (BEC) scheme targeting a Massachusetts workers union. The funds, traceable to financial fraud and subsequent laundering activities, were recovered following a court-ordered default judgment and final order of forfeiture.

International Money Laundering Network Uncovered

The civil forfeiture complaint, filed in June 2024, revealed how in January 2023, criminals exploited digital vulnerabilities to defraud a Dorchester-based workers union out of $6.4 million. The stolen funds were swiftly laundered through an elaborate network of intermediary bank accounts, cryptocurrency exchanges, and foreign banks located in Hong Kong, China, Singapore, and Nigeria.

This case exemplifies modern money laundering tactics, where cyber-enabled fraud and cross-border financial transactions are used to obscure the origin of illicit proceeds. The laundered funds were dispersed rapidly to avoid detection, but careful investigation and asset-tracing techniques allowed authorities to seize funds from seven domestic bank accounts before they could be fully dissipated.

Federal Authorities Crack Down on Money Laundering

The US Secret Service spearheaded the investigation, applying advanced forensic financial techniques to dismantle the laundering network. The recovery was announced by Matthew R. Galeotti, Head of the Justice Department’s Criminal Division; US Attorney Leah B. Foley for the District of Massachusetts; and Special Agent in Charge William Mancino of the US Secret Service.

Prosecution was led by Trial Attorneys Jasmin Salehi Fashami and Adrienne Rosen of the Criminal Division’s Money Laundering and Asset Recovery Section, alongside Assistant US Attorney Matthew Lyons for the District of Massachusetts.

Their coordinated efforts highlight the crucial role of cross-agency collaboration in tackling the evolving threat of global money laundering and financial crime.

The Growing Threat of Cyber-Enabled Money Laundering

This case serves as a stark reminder of the growing sophistication of money laundering operations, which increasingly involve cryptocurrency exchanges and international banking systems. Criminals are leveraging digital technology to launder the proceeds of fraud more quickly and anonymously than ever before.

Federal authorities have reaffirmed their commitment to strengthening enforcement measures, pursuing illicit assets, and disrupting the financial mechanisms that support cybercrime and international fraud.

Businesses are urged to bolster cybersecurity measures, implement rigorous anti-fraud protocols, and maintain heightened vigilance to safeguard against becoming unwitting participants in laundering schemes.

Read the press release here.