WASHINGTON—During a ceremony held today at the U.S. Department of the Treasury, the Financial Crimes Enforcement Network (FinCEN) honored recipients of its Law Enforcement Awards Program. The program, which began in 2015, recognizes agencies that have successfully used Bank Secrecy Act (BSA) data to support criminal prosecutions. The program directly supports FinCEN’s ongoing efforts to better track and measure the value of BSA reporting and associated outcomes. Senior Treasury and FinCEN leadership, as well as law enforcement officials, participated in today’s ceremony.
“The cases recognized today demonstrate the true value of BSA reporting provided by financial institutions,” said FinCEN Director Andrea Gacki. “As these cases exemplify, this data is crucial to helping law enforcement detect and prosecute criminals who would misuse the financial system for their own gain. It truly takes the combined efforts of law enforcement and the financial industry to protect our country from serious financial crimes.”
FinCEN received 37 case nominations for this year’s program. Collectively, these cases involved the review and analysis of more than 8,500 BSA reports filed by a total of 339 financial institutions. The nominated cases resulted in 178 convictions, $2.5 billion seized, and $2.2 billion in restitution to help make victims whole—the highest dollar amounts FinCEN has seen since the program’s inception. The seven award categories are listed below, along with brief summaries of the cases recognized today. FinCEN will post summaries of all case nominations to its website in the coming weeks.
Drug Trafficking Organization Activity: United States Attorney’s Office, Western District of Washington
This investigation involved a money laundering organization that was moving illicit drug proceeds to Mexico for a drug trafficking organization. Investigators identified a larger network of people engaged in the same activity by canvassing BSA reporting. FinCEN training sessions provided investigators with important information on creating essential queries of BSA data. In total, more than 4,700 FinCEN filings were reviewed during this investigation and more than 140 grand jury subpoenas were issued. The United States Attorney’s Office for the Western District of Washington prosecuted this case.
Corruption: Homeland Security Investigations
Law enforcement officials initiated this investigation into an organization responsible for laundering illicit proceeds obtained by politically exposed persons, who embezzled approximately $1.2 billion using third-party money laundering organizations. BSA reporting allowed case agents to trace the flow of funds through financial institutions domestically and abroad. The United States Attorney’s Office for the Southern District of Florida prosecuted this case.
Human Trafficking and Human Smuggling: Homeland Security Investigations
This investigation involved a business owner who operated multiple U.S.-based businesses as well as production factories in several states that were staffed by undocumented non-citizens. Analysis of financial records, including BSA reporting, revealed thousands of transactions through at least 10 business and personal bank accounts of the business owner. Investigators estimated that approximately $15 million per year was being laundered through these accounts to include approximately $2 million in bulk U.S. currency per year from the illegal sales of controlled substances. The United States Attorney’s Office for the Southern District of Ohio prosecuted this case.
Fraud: Environmental Protection Agency Criminal Investigation Division
BSA reporting was crucial to the case development and successful prosecution of a conspiracy involving some of the biggest biodiesel and tax fraud schemes in the industry. Conspirators made false claims to the U.S. Government exceeding $1 billion using a biodiesel company. BSA reporting was instrumental in identifying the fraud scheme and limiting the losses to $511 million. The Department of Justice Tax Division prosecuted the case out of the District of Utah.
Transnational Criminal Organization Activity: United States Attorney’s Office, Northern District of Georgia
This large-scale fraud and money laundering operation targeted citizens, corporations, and financial institutions throughout the United States and abroad. Business email compromise schemes, romance fraud scams, and retirement account takeover schemes duped hundreds of victims into sending substantial amounts of money to the defendants and their co-conspirators. Almost 1,000 BSA reports were used in this investigation and allowed investigators to piece together the puzzle of this extensive fraud scheme. Investigators reviewed records for more than 300 bank accounts, and agents interviewed approximately 150 victims. The United States Attorney’s Office for the Northern District of Georgia prosecuted this case.
Cybercrime: United States Attorney’s Office, Southern District of New York
Over 100 BSA reports assisted in this investigation into a cryptocurrency scheme that defrauded millions of victims around the world and resulted in billions of dollars in losses. Through leads generated by BSA reporting, investigators collected and analyzed bank records, interviewed witnesses, and unraveled a sprawling international fraud and money laundering scheme. BSA information revealed suspicious financial activity between several suspects and their businesses, including numerous transactions involving overseas bank accounts that were inconsistent with one of the company’s reported business activities. This was one of the largest fraud schemes that the United States Attorney’s Office for the Southern District of New York has ever prosecuted.
State and Local: Manhattan District Attorney’s Office and New York Police Department
This investigation began when law enforcement officials reviewed BSA information indicating that an individual sent cryptocurrency to a known terrorist group and became the first terrorism and cryptocurrency financing case and conviction in New York state history. The Manhattan District Attorney’s Office prosecuted this case.
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