LCN & Money Laundering

[Etna]

Hey Everyone,

Just curious. Does anyone know the most common method that LCN uses to clean their money? Is it simply cooking the books of a legitimate business or do these guys simply deposit some debts lower than the $10k mark?

[Wiseguy]

In June 2015, the Money Laundering Risk Assessment by the Treasury Department reported the LCN intermingled illicit proceeds with legitimate business profits, and the FBI noted that one of the difficulties in tracing Mafia proceeds was the group’s preference for cash. Mafia members would store up to several million dollars in cash rather than place the money in a bank.

[TallGuy19]

If you're making money illegally putting in a bank is the worst decision you could make, even if you're depositing in increments of less than $10,000 at a time. Law enforcement can use something called civil asset forfeiture to steal your money without ever charging you with a crime, and your options for recovering the cash are basically non-existent. If you haven't paid taxes on the money and can't prove that it came from a legitimate source, it should not be in a bank. I'm guessing the mob has figured that out by now.

[ChicagoOutfit]

Hey Everyone,

Just curious. Does anyone know the most common method that LCN uses to clean their money? Is it simply cooking the books of a legitimate business or do these guys simply deposit some debts lower than the $10k mark?

Fake invoices, Front businesses, legitimate biz that are over/under reporting incomes of cash generating businesses (pizza shop, delis, vending machines, laundry machines etc.)...pay the tax on it and move the money into someone else’s name and buy real estate/biz/other assets typically under false names.

[Etna]

In June 2015, the Money Laundering Risk Assessment by the Treasury Department reported the LCN intermingled illicit proceeds with legitimate business profits, and the FBI noted that one of the difficulties in tracing Mafia proceeds was the group’s preference for cash. Mafia members would store up to several million dollars in cash rather than place the money in a bank.

So essentially having a business to mix the dirty money or store all they made.

I specifically remember thinking of the mob guy (who I cannot recall) would give his shy lock ppl cash and would have them write checks to cash automatically. Maybe that'a where it looked clean?

[Etna]

If you're making money illegally putting in a bank is the worst decision you could make, even if you're depositing in increments of less than $10,000 at a time. Law enforcement can use something called civil asset forfeiture to steal your money without ever charging you with a crime, and your options for recovering the cash are basically non-existent. If you haven't paid taxes on the money and can't prove that it came from a legitimate source, it should not be in a bank. I'm guessing the mob has figured that out by now.

Right and same with RICO predicates, any assets earned as a result of the enterprise. But I always wondered, with all these envelopes moving around they must be just paying cash for everything.

[Peppermint]

If you're making money illegally putting in a bank is the worst decision you could make, even if you're depositing in increments of less than $10,000 at a time. Law enforcement can use something called civil asset forfeiture to steal your money without ever charging you with a crime, and your options for recovering the cash are basically non-existent. If you haven't paid taxes on the money and can't prove that it came from a legitimate source, it should not be in a bank. I'm guessing the mob has figured that out by now.

That depends really, if your only source of income is by illegal means then yes even small increments is a bad idea. But if you put into the bank, an amount less than what you make doing the legal work you also do along with the illegal. Then, they’ll never notice a thing. But this is really only viable if you’re a common mid-level drug dealer. You could also put your money into offshore bank accounts, that the IRS and the rest of the federal government has no jurisdiction over. If you’re making the kind of money illegally that you cant risk using normal banks, then you can afford to take the extra step into using offshore accounts.

Best thing to do, that everyone here I think agrees with. Is taking that cash, and investing it into legitimate sectors. A private accountant isn’t going to ask where that cash came from, because they’re getting a cut from it, and if you’re making that kind of money you can easily afford a private freelance accountant that isn’t an employee of any banking system, or accounting agency like H&R Block. Even investment firms aren’t going to ask any questions, because all their clients are probably making shady investments and all they want to do is get paid too.

Money laundering is so easy, anyone can do it. I never understood why there have always been high profile criminals that don’t it.

[NYNighthawk]

The problem with offshore accounts is the local government. If they are overtaken then all your money is gone. That happened in Panama when Noreiga was removed from office and the banks were all nationalized.

[Peppermint]

The problem with offshore accounts is the local government. If they are overtaken then all your money is gone. That happened in Panama when Noreiga was removed from office and the banks were all nationalized.

Offshore accounts don’t just exist in third world countries. Cayman Islands for example, is part of the United Kingdom, while not ideal anymore because offshore Cayman accounts have been cracked down upon. There are others that exist in Sweden, Luxembourg, Switzerland, Russia, etc that don’t present those kinds of risk. Maybe Russia, but their government being toppled would look much different than the likes of Panama. Most of the government, and banking system would remain mostly intact other than Putin’s constituents. The oligarch that runs the show there is a double edged sword, they keep Putin in power while at the same time opposing him all his political opponents are literally billionaires. I’m trailing from the point, so I’ll wrap it up and leave it that.

[TallGuy19]

The problem with offshore accounts is the local government. If they are overtaken then all your money is gone. That happened in Panama when Noreiga was removed from office and the banks were all nationalized.

There are also ways for the U.S. government to track offshore accounts. It's fairly difficult, but if they want you bad enough they'll stop at nothing to get you and your money. I barely feel comfortable keeping my money in a bank now, and I'm not even a criminal. If I were involved in any criminal activity I would just buy a high-end safe and stash all of my money in it.

[Peppermint]

The problem with offshore accounts is the local government. If they are overtaken then all your money is gone. That happened in Panama when Noreiga was removed from office and the banks were all nationalized.

There are also ways for the U.S. government to track offshore accounts. It's fairly difficult, but if they want you bad enough they'll stop at nothing to get you and your money. I barely feel comfortable keeping my money in a bank now, and I'm not even a criminal. If I were involved in any criminal activity I would just buy a high-end safe and stash all of my money in it.

Until one day you let your guard down, and a crew of some bad motherfuckers kick in your door waving 44’s tie you and your wife up, probably blast her in the face, and steal the safe.

Some of these countries, like Russia for example, the U.S government has zero jurisdiction in. Unless they want to commit to a massive espionage operation, that if caught doing will trigger an international crisis because such an operation would be violating international law and U.N espionage treaties, they aren’t going to risk any of that to investigate your financial crimes. Why do you think so many fat cats completely get away with committing all kinds of tax fraud and shit? If a country doesn’t have extradition agreements with the U.S, there isn’t anything the U.S can’t do about it, that includes offshore accounts being held by U.S citizens in other countries.

Offshore accounts, and legitimate investments as a silent partner are the only logical options.

[E. Lou Minotti]

Hey Everyone,

Just curious. Does anyone know the most common method that LCN uses to clean their money? Is it simply cooking the books of a legitimate business or do these guys simply deposit some debts lower than the $10k mark?

Fake invoices, Front businesses, legitimate biz that are over/under reporting incomes of cash generating businesses (pizza shop, delis, vending machines, laundry machines etc.)...pay the tax on it and move the money into someone else’s name and buy real estate/biz/other assets typically under false names.

Hair salons are good too. In a big city or nice suburb they can easily charge upwards of $150-200 a head. In NY a lot of wiseguy's wives owned salons. You can wash a lot of cash through them.

[Etna]

The problem with offshore accounts is the local government. If they are overtaken then all your money is gone. That happened in Panama when Noreiga was removed from office and the banks were all nationalized.

There are also ways for the U.S. government to track offshore accounts. It's fairly difficult, but if they want you bad enough they'll stop at nothing to get you and your money. I barely feel comfortable keeping my money in a bank now, and I'm not even a criminal. If I were involved in any criminal activity I would just buy a high-end safe and stash all of my money in it.

Until one day you let your guard down, and a crew of some bad motherfuckers kick in your door waving 44’s tie you and your wife up, probably blast her in the face, and steal the safe.

Some of these countries, like Russia for example, the U.S government has zero jurisdiction in. Unless they want to commit to a massive espionage operation, that if caught doing will trigger an international crisis because such an operation would be violating international law and U.N espionage treaties, they aren’t going to risk any of that to investigate your financial crimes. Why do you think so many fat cats completely get away with committing all kinds of tax fraud and shit? If a country doesn’t have extradition agreements with the U.S, there isn’t anything the U.S can’t do about it, that includes offshore accounts being held by U.S citizens in other countries.

Offshore accounts, and legitimate investments as a silent partner are the only logical options.

Good point. I remember HSBC in China was involved in a huge money laundering scheme back when Obama was President. The federal government was pretty much left with their hands tied.

[Wiseguy]

In June 2015, the Money Laundering Risk Assessment by the Treasury Department reported the LCN intermingled illicit proceeds with legitimate business profits, and the FBI noted that one of the difficulties in tracing Mafia proceeds was the group’s preference for cash. Mafia members would store up to several million dollars in cash rather than place the money in a bank.

So essentially having a business to mix the dirty money or store all they made.

I specifically remember thinking of the mob guy (who I cannot recall) would give his shy lock ppl cash and would have them write checks to cash automatically. Maybe that'a where it looked clean?

That's the basic jist of the report, i.e. the LCN's extensive infiltration of all types of legitimate businesses affords them that avenue to hide their illicit cash.

[Uncle Pete]

Another thing to remember is that a lot guys put the money they are making immediately back out on the street for loansharking