A federal grand jury has charged one man with operating an unlicensed money transmitting business and two others with money laundering and related charges in the first bitcoin-related case before the Western District of New York, according to the U.S. Attorney’s Office and the Western District of New York.
The grand jury has charged Richard Petix of Rochester, N.Y. with operating an unlicensed money transmitting business and making false statements. The grand jury also charged Zhe Wang, 20, and Kevin Szura, 20, both of Queens, N.Y., with money laundering, conspiracy to distribute controlled substances, conducting a transaction in criminally derived property and money laundering conspiracy. Defendants Face Prison
Petix faces five years on each charge while the other two men face up to 20 years in prison, according to U.S. Attorney William J. Hochul, Jr.
“This case demonstrates the ever-growing ways in which the virtual world is intersecting with, and being exploited by, real life crime and criminals,” said Hochul. “Those involved in such illicit activities should know that law enforcement is prepared to track them into the deep and dark portions of the web in order to bring criminals to justice.”
J. Michael Kennedy, acting special agent in charge of Homeland Security Investigations (HIS), said it is important to dismantle the fraudulent financial operations of transnational criminal organizations since such groups can succeed as long as they can funnel illicit proceeds without detection.
He said HSI will continue to target illegally-functioning, new alternatives to traditional financial institutions that intentionally allow individuals and businesses to further their criminal schemes. Petix On Probation For Child Pornography
Wei Xiang, the Assistant U.S. Attorney handling the cases, said the indictment and a previously-filed criminal complaint against Petix indicate he lied to law enforcement agents and federal probation officers about his ownership and use of a […]
