Feds say Milton man exported used automobiles to maneuver soiled cash out of US

MILTON – Federal prosecutors charged a Milton man after they said he helped scammers get their money from US banks to overseas accounts after they stabbed him with a guilty scammer.

Augustine Osemwegie, 53, of Milton, was charged last week on a single charge of conspiracy to commit bank and wire transfer fraud. Federal agents also searched his home on Thacher Street, according to court records.

Osemwegie used its used car dealer in Fall River to Ejad car salesto transfer money from lovesickness, unemployment, and other scams into cash or assets outside of the United States, FBI Agent Michael Livingood wrote on an affidavit.

He bought used cars with money fraudulently obtained by others and then sent the used cars to Nigeria where they were sold. He then paid out most of the proceeds to the original scammers, minus a 10 percent fee, Livingood wrote.

More:Read FBI Agent Michael Livingood’s investigation

The cash-for-car program enabled Osemwegie’s co-conspirators, all but one unidentified, “to evade the banking system’s detection and regulation of their money transfers,” wrote Livingood.

The FBI began stabbing Osemwegie last summer after an unnamed scammer named “CW-1” pleaded guilty to conspiracy to commit mail and wire fraud and agreed to work with prosecutors in the summer of 2020. used the services of Osemwegie to “transfer a portion of the proceeds from the Massachusetts frauds to Nigeria,” wrote Livingood.

“There was a network of co-conspirators in Nigeria to whom CW-1 provided US bank accounts that could be used to raise fraud proceeds,” wrote Livingood. “CW-1 generally charged a fee of 15 percent of the total amount deposited into an account it controlled.”

March 28, 2021:Four residents of the canton have taken on roles in romances, with unemployment fraud grossing $ 4 million

Fraudsters used Osemwegie’s services because they could quickly convert cash in America into money in Nigerian bank accounts. He sent the used cars to Nigeria, where the dealers paid him in the local currency, and then gave everything but his share to the fraudsters, wrote Livingood.

On Tuesday, Osemwegie was released with a $ 250,000 bond backed by a property in Mattapan he owns. According to court records, he is prohibited from participating in car sales until his trial is complete.

According to the Small Business Administration, Osemwegie also received two paycheck protection program grants during the pandemic. one in May 2020 for $ 7,302 and an in March 2021 for $ 4,273.

From cash to cars and back again

It is not illegal to buy used cars in America and then export them, nor is it illegal to send goods such as cars to another country for money transfer. It is known as the “informal value transfer system” and is regulated at the state and federal levels, Livingood wrote.

June 22, 2021:Canton woman advocates participating in romance scams that brought in $ 1.3 million

These regulations include registration with the Financial crime enforcement network and reporting suspected money laundering. Neither Osemwegie nor Ejad car sales were federally registered. Massachusetts also regulates overseas transactions and requires practitioners to be “licensed money transmitters,” wrote Livingood. Oswemwegie was not registered in Massachusetts.

Between October 2018 and August 13, 2021, Ejad Auto Sales and Osemwegie exported 218 vehicles valued at $ 1.3 million to Africa, Livingood wrote. No money was ever reported as the proceeds from the sale of these vehicles.

Hyde Park scammers plead guilty

Five months after the stab operation in Augustine Osemwegie, the FBI arrested Macpherson Osemwegie, 32, from Hyde Park and charged him with bank and wire transfer fraud conspiracies run a series of love and unemployment frauds. They found he had two money orders for $ 1,000 in Ejad Auto Sales account, Livingood wrote.

July 27, 2021:Macpherson Osemwegie signs plea for bank and wire transfer fraud conspiracy

Macpherson Osemwegie

On Wednesday, Macpherson Osemwegie pleaded guilty to single charges of bank and wire transfer fraud conspiracy after signing a plea deal in July. His co-conspirators were Osakpamwan Omoruyi, 36, and Osaretin Omoruyi, 34, both cantons. They were charged in one case of conspiracy with bank and wire transfer fraud, in three cases with wire transfer fraud and in two cases with money laundering. Both men are Nigerian nationals. Your cases continue.

02/28/2021:Romance Scam: Former Randolph man arrested for $ 1.7 million fraud

As part of the plea, Macpherson Osemwegie agreed to forfeit $ 690,000.

Check out our previous coverage of federal romance and unemployment and embezzlement cases

July 27, 2021:Two cantons accused, accused of love fraud

June 28, 2021:Canton woman sentenced to six years in prison after stealing $ 1.4 million from nonprofits

June 22, 2021:Canton woman advocates participating in romance scams that brought in $ 1.3 million

March 28, 2021:Four residents of the canton have taken on roles in romances, with unemployment fraud grossing $ 4 million

02/28/2021:Romance Scam: Former Randolph man arrested for $ 1.7 million fraud

Many thanks to our subscribers who make this reporting possible. If you are not a subscriber, please consider supporting quality local journalism with a Patriot Ledger subscription.

Reach reporter Wheeler Cowperthwaite at wcowperthwaite@patriotledger.com.

Feds will ration water from Colorado River amid historic drought

The US government on Monday declared the first water shortage in Lake Mead, the largest reservoir in the country by volume, after the water level fell to a record low amid a decades-long drought.

The water cuts will go into effect for Arizona, Nevada and Mexico in January, the Bureau of Reclamation said on Monday. Arizona will be hardest hit, with roughly 18% of the state’s annual allotment cut.

The Colorado River provides water and electricity to more than 40 million people in the west, while also providing approximately 2.5 million acres of farmland. Among the cities it serves is Phoenix, which according to the US newspaper has been the fastest growing city in the US for the past decade Arizona Republic, and is now the fifth largest city in the country.

Earlier this summer, reservoirs in the Colorado River Basin fell to their lowest level on record after 22 consecutive years of drought. In just five years, Lake Mead and Lake Powell have lost 50% of their capacity.

Officials believe Lake Mead’s water level is just below 1,066 feet on Jan. 1, which is about nine feet below the trigger level of 1,075 feet.

At a press conference following the announcement, officials said “additional action is likely to be required in the near future” as the situation worsens. More than 98% of the western US is currently in drought, 64% in extreme drought conditions.

“We are seeing the effects of climate change in the Colorado River Basin through prolonged drought, temperature extremes, widespread forest fires, and in some places floods and landslides, and now it is time to take action to respond,” said Tanya Trujillo. Deputy Secretary for Water and Science in the Ministry of the Interior.

Lake Mead was created through the construction of the Hoover Dam and extends over more than 750 miles of coastline.

The Fed’s Reverse Repos Don’t Shrink the Cash Provide

Aug 5, 2021 3:26 p.m. ET

Phil Gramm and Thomas R. Saving present their commentary “How the Fed is hedging its inflation bet“(Aug. 2) by stating a fact:” The growth of the money supply M2 has declined from around 25% in 2020 to around 10% on an annual basis in the first six months of 2021. “They then explain that this The slowdown has occurred because, since April, the Fed has “drawn nearly $ 1 trillion in liquidity from the financial system” through its reverse repurchase facility. Your argument is based on a flawed theory and does not hold water.

The idea that a trillion dollars in reverse repos reduced the money supply by just a dollar is nonsensical. Reverse repos are a Fed liability and an asset of the banks and money market funds (MMMFs) that lend funds to the Fed through reverse repos. Deposit liabilities from both banks and money market funds are part of the money supply. These liabilities are unaffected by the choice of banks and MMMFs whether to invest their assets in the Fed’s reverse repo facility, Treasury bills or elsewhere. In contrast to the gram-saving analysis, the Fed’s reverse repo program has no impact on the money supply.

John Greenwood

Chief Economist, Invesco

London

S.I. man charged in main money-laundering scheme for drug traffickers. Over $28 million modified arms, say feds.

STATEN ISLAND, NY – A Staten Island man played a key role in a ring that laundered over $ 28 million for drug trafficking organizations in the United States and Mexico, authorities claim.

Dielong Wu, 58, was among seven defendants, officials said.

He was the only defendant in the county.

Five defendants, including alleged ringleader Ying Sun, 65, are from California. The remaining suspect is from Queens.

Authorities said Sun led the group for about a year and a half from November 2019 to May 2021.

During that time, he received large sums of money that were laundered by drug dealers in the United States and Mexico, officials said.

From April 2020 to April 2021 alone, Sun arranged more than 130 cash pickups in 23 states, with drug trafficking revenues totaling over $ 20 million, authorities said.

Wu and the five other defendants took the money, then transported it and deposited it with private banks, officials said. In some cases, they transferred the money to different people or institutions, the authorities said.

According to an indictment, Wu made 11 cash withdrawals for over $ 1 million between April 28 and May 4 last year.

Sun arranged the pickups in and around Staten Island, the Bronx and Philadelphia, the indictment states.

On May 4, Wu Jie Lin, 58, handed a co-defendant a bag of cash in or around Mount Laurel, NJ, the indictment said.

After that, the authorities confiscated about US $ 300,000 from Lin and one other person when they tried to deposit the money with a retail bank, the indictment said.

During the investigation, authorities confiscated over $ 6.5 million from the group of defendants, officials said.

Authorities said they secured an additional $ 8 million in assets attributable to illicit revenue laundered from the ring.

Six of the defendants, including Wu, were charged with conspiracy to commit money laundering and conspiracy to operate an unlicensed money transfer business.

The charges are subject to maximum sentences of 20 years and five years behind bars.

Wu was arrested Wednesday and remains vacant on a $ 250,000 bond, online court records show. His community was not immediately available.

He was charged in federal court in Manhattan.

“Mr. Wu has made a plea not guilty and as such we intend to fight these allegations aggressively,” said Xavier Donaldson, the defendant’s attorney.

The arrests were announced by Ray Donovan, Special Envoy for the New York Department of the Federal Drug Administration, and Audrey Strauss, US attorney for the New York Southern District.

“One of the most powerful criminal elements in transnational drug trafficking organizations is money laundering,” Donovan said in a statement. “As with any business, the ultimate goal of drug trafficking is profit. These money laundering networks provide human traffickers with an invaluable service by transferring their ill-gotten gains around the world. “

With extra ‘hope cash’ from feds on the horizon, South Dakota’s transportation fee OKs changing 31 bridges

“We know we have a number of bridges in disrepair,” said Tammy Williams, SDDOT program manager, during a meeting of the South Dakota Transportation Commission Thursday, April 29th. But Williams told the commission that federal grants could be in excess of $ 30 million annually for the next four years.

When asked how reliable this funding could be, she replied, “However, we are programming for it … and we just hope.”

“Hope money,” interjected Commissioner Mike Vehleto laugh at.

The bridges of the state of South Dakota are more sobering, however.

A national trade group released a report Earlier this year, South Dakota was found to have the fourth worst rating of structurally weak bridges in the country.

And while the congress is debating duel infrastructure approaches – President Biden announces he plans to spend more than $ 2 trillion while Republicans of the Senate have proposed a reduced $ 500 billion plan – South Dakotans, who depend on federal dollars for bridge funding, listen.

State officials said that on Thursday deteriorated conditions are not largely found in the inventory of around 1,800 directly owned by the state.

“Our government structures are in pretty good shape,” SDDOT’s chief bridge engineer Steve Johnson told the commission.

However, conditions are becoming more precarious for the 3,900 buildings in counties or cities where the average bridge age (51 years) is seven years older than the national average (44). On Thursday, Williams said that 25% of that inventory is classified as “in poor condition” by the state.

“The county system came a little earlier,” Williams said, noting that roads and associated bridges were built from the 1920s, 1930s, and 1940s, decades before the highway system on which many state structures rest. “Many of the local structures date from this time.”

But she said they are “making progress”.

Last year, a federal-local program funded the repair of 49 structures. On Thursday, the commission unanimously approved the approval of $ 21.5 million 31 Replacing structures – and remove another 11 – currently in the public inventory of the bridges and place them in the coming year Planning budget.

“It’s good business,” Williams commented.

The bridges, she said, were selected by a scoring system that awarded applicants points based on the condition of the bridge and its “impact on the user”. The bridges awarded include a number that crosses the various waterways, which state officials in certain areas of South Dakota have identified as a constant challenge.

“If you look at the east side of the state, you can actually see the major rivers that flow through South Dakota and the tributaries that flow into them,” noted Mike Behm, director of the planning and engineering division who provided the commission on Thursday with a structure condition report summarizing the conditions of the 5,700 public bridges in South Dakota that cover 82,000 miles of carriageway.

Of the 31 bridges to be replaced, four cross Wolf Creek in rural Hand County, while others include structures that span the Big Sioux and Miller Creek in Spearfish.

On The Cash: Breaking down Biden’s $1.8T American Households Plan | Powell voices confidence in Fed’s deal with on inflation | Wall Road basks in ‘Biden increase’

Have a nice Wednesday and welcome back to On The Money, where we prepare for something else shared session experience. I’m Sylvan Lane, and here’s your nightly guide to everything to do with your bills, bank account, and bottom line.

Do you see something that I missed? Let me know slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: https://bit.ly/1NxxW2N.

Write to us with tips, suggestions and news: slane@thehill.com, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter: @SylvanLane, @ NJagoda and @NivElis.

THE BIG DEAL – This is what Biden’s $ 1.8 billion plan for American families says: President BidenJoe BidenTulane adds Hunter Biden as a guest speaker on media polarization Trump on the resumption of MAGA rallies: report Biden’s inevitable foreign policy crisis MORE On Wednesday, the American Families Plan will be unveiled, an ambitious package that includes $ 1 trillion in new spending and $ 800 billion in tax credits aimed at increasing access to preschool and community colleges, as well as childcare and Extend health care significantly.

  • Biden will explain the proposal in a speech to a joint congressional session where he is expected to set his agenda for the coming months.
  • The centerpiece of the speech will be the Family Plan, which will be rolled out less than a month after Biden unveils a $ 2.3 trillion infrastructure proposal.

But we already have details of what Biden will propose tonight.

Education:

  • The American Families Plan has a $ 200 billion program that provides universal pre-kindergarten for all three- and four-year-olds.
  • $ 109 billion for a tuition-free community college for any American who wants it.
  • $ 85 billion to increase Pell grants for low-income and minority students.
  • More than $ 4 billion in major scholarships, certification, and support programs for teachers.

Tax credits:

  • The plan would build on the provisions of the American Rescue Plan by indefinitely extending the Affordable Care Act tax credits and making the extension of the childless worker tax credit permanent.
  • It would make the child tax credit permanent fully available to the families with the lowest incomes, while other aspects of credit expansion, such as increasing the loan amount, will expand through 2025.

The proposal includes the creation of a national program for paid family and sick leave, more funding for catering programs for children and low-income families, and reform of unemployment insurance. The Hill’s Brett Samuels and Morgan Chalfant break it open here.

The tax increases: All of these new investments will be accompanied by a number of proposed high income tax hikes which, on their own, could be a major political boost.

The Naomi Jagoda of the Hill leads us through Biden’s tax plan here.

Read more about the American Families Plan:

  • President Biden will speak to Congress on Wednesday evening tense terms with the business community for proposals to increase the corporate tax rate and nearly double the capital gains tax for high-income Americans.
  • Key Democratic lawmakers said Wednesday they would keep pushing for that full expansion The Presidential Tax Credit (CTC) is set to be permanent after President Biden released a proposal that would only cement part of the expansion.
  • The Treasury Department on Wednesday announced more details on President Biden’s proposal to increase IRS funding Strengthen compliance According to tax laws, these initiatives would generate net sales of $ 700 billion over a decade.

Run the day

Powell is confident the Fed can get inflation under control: Federal Reserve Chairman Jerome Powell said Wednesday that rising inflation will offset itself as one-off, pandemic-related statistical quirks and supply chain disruptions subside.

During a press conference, Powell argued that the recent spike in the rate of price increases is almost entirely due to economic activity picking up after the collapse during the coronavirus recession outbreak.

“We’ll likely see some upward pressure on prices,” Powell said after the Fed announced that it would keep rates near zero percent and maintain the current rate of bond purchases in the reopening process. ”I Explain why here.

The background:

  • The US is expected to grow between 6 and 8 percent in 2021 as it contains the spread of COVID-19 and brings millions of people back to work.
  • Critics fear Biden’s recent $ 1.9 trillion in economic aid, plans for future spending, and loose monetary policy from the Fed will boost inflation as the US is already booming.
  • The consumer price index (CPI), a closely watched indicator of inflation, rose 2.6 percent between March 2020 and last month, and minus food and energy costs 1.7 percent.

However, Powell said Wednesday that summer inflation would continue to rise due to two short-term factors: The statistical effect of comparing a fall in demand with a sharp surge in demand and congestion caused by the reopening of the global economy.

“An episode of one-off price increases in the reopening of the economy is not the same as and is unlikely to result in sustained higher inflation year over year into the future,” he said.

TO TAP TOMORROW:

  • The Senate Banking Committee will hold a hearing on “The Dignity of Work” at 10 a.m.
  • The Senate Finance Committee holds a social security hearing at 10 a.m. during the COVID-19 pandemic
  • A House Financial Services subcommittee will hold a hearing at 12:00 noon to close the racial and gender wealth gaps
  • A House Ways and Means subcommittee will hold a hearing on infrastructure investments at 1:30 p.m.

GOOD TO KNOW

BITS AND PIECES

Grosse Pointe Park man steals cash from Metro Detroit charity for private use, feds say

DETROIT – A Big Pointe Park Mann is accused of stealing money from a charity that benefits disadvantaged children in Detroit and using it for his own personal expenses. Federal officials said.

John R. Lynch, 56, from Grosse Pointe Park, was arrested on Thursday, April 8th Connection with the case.

According to official information, Lynch became CFO of the Holy Cross organization in March 2012 and later its CEO in 2015.

Holy Cross was founded in 1948 when Boysville of Michigan was incorporated under the auspices of the Roman Catholic Archdiocese of Detroit. Boysville of Michigan later became Holy Cross Children’s Services, federal officials said.

The organization provides social benefits to disadvantaged children and adolescents and behavioral health services to adolescents and adults. It also supports the homeless.

display

While he was CEO of Holy Cross, Lynch used the organization’s funds to pay for repairs to his own cars, install a new roof on his house, repay his personal mortgage balance, and make payments on a personal American Express account, so the authorities.

He used Holy Cross funds to pay for his own consulting firm and hired another company to provide security services at the Holy Cross Samaritan Center, the government said. This security company was controlled by officers from Lynch, according to information.

The complaint alleges that Lynch used his Holy Cross American Express corporate card to purchase goods and services for personal use.

Lynch tried to justify some of the payments with fake invoices, authorities said.

Officials said Holy Cross receives federal funding through the National School Lunch Program and the School Breakfast Program. She also receives federal funding under Title IV-E of the Social Security Act, which funds foster families and provides adoption and guardianship support, they said.

display

Lynch faces charges of wire fraud, postal fraud, and embezzlement and theft of funds under the care, custody and control of an organization that receives federal funding.

Officials said a decision should be made on whether to bring a crime charge when the investigation is complete. FBI officers are conducting the investigation.

Copyright 2021 by WDIV ClickOnDetroit – All rights reserved.

Fed’s Quarles says regulators to put out cash market fund reforms in July

FILE PHOTO: Randal K. Quarles, vice chairman of the Federal Reserve Board of Governors, testifies before a Senate Banking, Housing and Urban Affairs Committee hearing on “Oversight of Financial Regulators” on Capitol Hill in Washington, United States, on Dec. 5, 2019 . REUTERS / Erin Scott / FIle Photo

WASHINGTON (Reuters) – A group of financial regulators will prepare recommendations in July to improve the resilience of money market funds and minimize the likelihood of them needing government assistance in the future, Randal Quarles, vice chairman of the US Federal Reserve, said Tuesday.

Quarles, in his capacity as head of the Financial Stability Board, said the group would focus on the relationship between money market funds and the short-term finance market, particularly the commercial paper market, after a liquidity crisis led to a run on these funds in March last year government intervention was required.

Reporting by Pete Schroeder; Adaptation by Paul Simao

Feds accuse Atlanta man of stealing tens of millions in years-long cash laundering scheme

The FBI raids the DeKalb County home

The FBI and DeKalb County police raided a house Thursday.

The FBI said it had indicted and arrested an Atlanta man in connection with a money laundering system that went on for about three years.

Federal investigators accused 37-year-old Atlanta man Abraham Adeniyi of money laundering and bank fraud related to a system that investigators said began in 2019 and continued through 2020. Officials said Adeniyi was arrested this Thursday morning in Georgia and presented before a federal official to judges in the northern Georgia district.

The charges came from the southern borough of New York.

Federal investigators accused Adeniyi of exploiting several “millions of dollars” fraud victims using a network of bank accounts.

According to a federal indictment, Adeniyi opened multiple bank accounts that received revenue from various wire transfer fraud programs and transferred money between the bank accounts. Adeniyi allegedly directed others involved in the program “to hide and disguise the source, location, property and control of the funds,” officials said.

CONNECTED: The FBI raids the DeKalb County home

Adeniyi allegedly used fraudulent identification information to open accounts with FDIC-insured banks and to obtain funds in those accounts.

Adeniyi could serve a maximum sentence of 20 years in prison for his money laundering and 30 years for conspiring to commit a bank fraud penalty.

“Criminals will always believe there is a pot of gold at the end of the rainbow,” said William F. Sweeney Jr., FBI deputy director of the New York field office. “As we claim in this investigation, Mr. Adeniyi and his cohorts stole money and tried to hide his origins through a number of bank accounts – while he thought no one could track it. He found that his luck was ultimately exhausted,” he said at the end of its rainbow, the FBI and the federal criminal justice system. “

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Feds challenge recent indictments in Montrose drug-trafficking and cash laundering case | Information

Seven other people were charged with offenses related to a methamphetamine and heroin trafficking case in Montrose County that had previously been charged with 13 people.

Of the seven new defendants identified by US prosecutors in a press release on Saturday, four are from Montrose: Rafael Jaramillo-Hernandez, Margarita Cruz-Gomez, Carlos Quijana-Ruiz and Carlos Beltran-Gonzalez.

Jaramillo-Hernandez and Quijano-Ruiz were charged with drug conspiracy. The US prosecutor said they had teamed up with Daniel Gastelo-Ochoa of Denver and Catyria Lopez-Gomez of Fort Collins, as well as the 13 previously accused, to distribute meth and heroin in 2019. If convicted, they face at least 10 years in prison.

Quijano-Ruiz, Jaramillo-Hernandez, Lopez-Gomez, Cruz-Gomez, Dalilah Suarez-Lopez of Denver and Beltran-Gonzalez are charged with money laundering and illegal drug distribution, “USAO said when announcing the charges on Saturday. These transactions should hide the type, location, source, and ownership of proceeds, the government said.

If convicted, these defendants face up to 20 years in prison.

The charges came under a longstanding investigation by the Drug Enforcement Administration, the Montrose County Sheriff’s Office, the Montrose Police Department, the 7th Judicial District Drug Task Force and the 7th Judicial District Prosecutor’s Office.

The prosecution, led by U.S. Assistant Attorney Zachary Phillips, is part of an investigation by the Drug Enforcement Task Force into Organized Crime. The OCDETF identifies, disrupts and dismantles high-level drug traffickers, money launderers, gangs and transnational criminal organizations.

Charges were filed against Ofelia Lopez in January 2020; Romeo Lujan; Omar Briceno-Quijano; Luis Alberto Ibarra-Tade; Jonte LeFlore; Dustin Debarris; Steven Keith Jones; Frank Arroyo; Amanda Sumpter; Nicole Wickman; Angelina Maestas, Naomi Vaughn and Joseph Davis.

Maestas, Vaughn and Davis were sentenced to prison terms for their roles in the program. Other cases are ongoing and these defendants along with the newly accused are considered innocent.