Log In | Subscribe | | |


Often, one is tempted to shake one's head in amazement when a regulator or enforcement agency is proud that it's done something that has been obvious for, well, pretty much for ever, in money laundering terms. If one were to shake one's head with appropriate force at FinCEN's boast that it is to target shell companies that have been used to purchase expensive properties in seven expensive areas, there's a risk it would topple free of one's shoulders. Surely the point is not the FinCEN has just noticed, but that it's just noticed that banks, lawyers and estate agents have not been making reports. Shades of Commonwealth Bank, maybe?

Case Summary: 

After pleading guilty to operating a Ponzi-style fraud based upon supposed returns from real estate investments, a Californian man has been jailed for six and a half years.

WhiteCollarCrimesCaseStudies is available exclusively to members of World Money Laundering Report and Financial Crime Risk Officers. Login or sign up to read the full case study.

Ponzi / Pyramid fraud
Editorial Staff

Just as Uber, etc., drivers are often uninsured and unlicensed, so are those who let out apartments via on-line rental services. New York has long had very strict rules about short term lets but the laws had little or no bite to them. But NY Governor Andrew Cuomo has just approved a law that gives the law teeth on an escalating scale. airbnb and similar sites don't like it.

Editorial Staff