Gunster – Banking and Financial Services, March 2009
On March 11, 2009, the United States Attorney’s Office, Southern District of Florida and U.S. Immigration and Customs Enforcement (“ICE”) announced the unsealing of a six (6) count indictment (“Indictment”) charging Luis Franco (“Franco”), Jaime Garcia (“Garcia”), and J&M USATrading, Inc. (“J&M”) (collectively the“Defendants”), with conducting a money transmitting business without the required license and registration in connection with the transfer of more than $3,000,000.00 from abroad into theUnited States in violation of Title 18, United States Code, Section 1960 (“Announcement”).
As explained in the Announcement, Franco was transporting U.S. Dollars from Colombia to Florida and delivering such currency to J&M, located in Miami, for a fee. The Indictment alleges that the Defendants were operating a money transmitting business without the required license in the State of Florida or registration with the U.S. Department of Treasury. Thus, the Defendants are alleged to have committed a federal criminal violation by engaging in “unlicensed money transmitting business”in the U.S. (18 USC 1960). The Indictment further alleges that the Defendants conspired to mislead the investigators through false documents, statements and testimony.
The Announcement explains that the Indictment is a result of ICE’s efforts to identify and dismantle international criminal networks who use the Colombian Black Market Peso Exchange as a means of repatriating illegal proceeds through South Florida.
The Indictment is significant because it reiterates the position of the U.S. Justice Department that even though a person may be physically outside ofthe U.S., if that person conducts money transmitting business to any degree in or through the U.S.without complying with applicable state (money transmitting) license requirements or FinCENregistration, such person will be considered to be engaging in “unlicensed money transmitting business” in violation of U.S. law. A copy of the Release and the Indictment is attached hereto.
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Should you wish to receive further informationconcerning matters discussed in this publication,please contact:
Clemente L. Vazquez-Bello 305.376.6082 ▪ [email protected]
Andres A. Fernandez 305.376.6097 ▪ [email protected]
Marina Olman 305.376.6069 ▪ [email protected]
This publication is for general information only. It is not legal advice, and legal counsel should becontacted before any action is taken which might be influenced by this publication.
