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Government seizes millions from garment district business owners

Government seizes millions from garment district business owners

Posted By Kenneth Krebs || 11-Oct-2014

On behalf of Kenneth Krebs of Law Offices of Karlstrom & Krebs posted in Criminal Defense on Saturday, October 11, 2014.

Criminal charges related to money laundering are serious in nature and carry hefty penalties. In cases where allegations and criminal charges related to money laundering are filed by the federal government, targeted individuals often face stiff penalties including prison time.

Los Angeles' garment district was recently targeted by investigators with the U.S. Treasury's Financial Crimes Enforcement Network and nine people were arrested on charges related to laundering money to help fund Columbian and Mexican drug cartels

The arrests were made last month as more than 1,000 law enforcement officials descended on the garment district. In that raid, assets in excess of $90 million, that were believed to be used in the money laundering activities, were seized from businesses and individuals.

Additionally, FinCEN has issued a Geographic Targeting Order which requires some 2,000 garment district business owners to report "any instance in which they receive at least $3,000 in cash." The GTO was issued in the hopes of cracking down on money laundering activities in which investigators claim cash was being converted to goods which were then transported to Mexico and sold for the benefit of the drug cartels.

This case is indicative of the federal government's increased efforts to target and root out individuals who it believes commit federal crimes. Individuals accused of illegal activities related to money laundering, fraud, computer crimes or other white collar crimes would be wise to seek the advice and guidance of a criminal defense attorney who handles federal crimes matters.

Source: Courthouse News Service, "L.A. Fashion District Under Scrutiny After Cartel Drug-Money Raid," Matt Reynolds, Oct. 2, 2014

Categories: Criminal Defense