Nine Indicted in Multi-State Scheme to Launder Multi-Million Dollar Fraud Proceeds

The U.S. Department of Justice (DOJ) announced that nine individuals have been charged for their involvement in a multi-state money laundering organization that allegedly laundered millions of dollars derived from internet fraud, including business email compromise schemes.

The indictment, unsealed in Nashville, Tennessee, reveals that the defendants were part of a long-running money laundering network that has been operational since approximately November 2016, spanning Tennessee, Texas, and across the United States.

According to the indictment, the organization was strategically structured with recruiters, known as "herders," who directed participants, known as "money mules," to launder proceeds from internet frauds targeting businesses and individuals in the United States and abroad. The defendants allegedly utilized sham and front companies to conceal the fraud proceeds and enrich the members of the conspiracy. The conspiracy is alleged to have agreed to launder more than $20 million in fraud proceeds.

If convicted, each defendant faces a maximum penalty of 20 years in prison.