Thread: Feds Bust Check Cashing Scam

If these companies didn't hire illegals then they would not deal in cash transactions or be involved in scams. I wish they would go after those construction companies and contractors for hiring illegals.

http://cbs4.com/local/US.Attorney.Alex.2.633038.html

Feds Bust Major Check-Cashing Stores In So. Fla.

The U.S. Attorney's office said on Friday it cracked a major operation, involving construction companies and check-cashing stores that defrauded the government of close to $50-million.

The investigation lasted at least nine months, and involved at least twelve people and a well-known check-cashing company known as La Bamba, which federal agents raided today.

"The charges," according to U.S. Attorney Alexander Acosta, "range from conspiracy and cause or attempted cause to filing of materially false currency transaction reports" totaling about $50-million.

Acosta explained that it worked in which a large number of construction companies in South Florida and a number of contractors and subcontractors wanted to do their transactions in cash.

Officials said those construction companies would write checks to a shell company which did not exist.

According to the investigation, the company would then present the checks to a check-cashing store called Cash Flow which would then take the checks to La Bamba, a much larger check-cashing store which would exchange the checks for cash and give it back to the construction companies.

"At each stage, Cash Flow, La Bamba and others associated with these types of transactions would collect the fee," added Acosta.

"Importantly, when La Bamba would file the currency transaction reports, La Bamba would in essence hide the true source and true destination of the cash," he added.



(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)

swatchick wrote:

If these companies didn't hire illegals then they would not deal in cash transactions or be involved in scams. I wish they would go after those construction companies and contractors for hiring illegals

THAT is exactly what needs to be done, and at NC Voice we are finding out that the NC State Dept. of Revenue will be aggressive in following-up on tips provided to their tip line at (919) 733-4799. You can report anonymously, but you need to have details and facts instead of accusations and inuendo in order to get the job done. If you want to get state officials moving on this, show them where the money is and they'll go after it, especially after you shine the spotlight of responsibility specifically on their job .

Hopefully there is a similar opportunity in your state as well! You may have to make some phone calls and dig around a little but the results may surprise you. After all, that's what grassroots activists do, right?