DOJ: Man Pleads Guilty to Money Laundering Offense in Scheme Involving Over $21,000,000 in Stolen Funds

• Weston and a co-conspirator used accounts at a New York online brokerage to move the stolen funds.
• A bank employee facilitated the fraudulent loans and transferred the funds into Weston's account.

Curtis Weston, age 35, from Rockwell City, Iowa, pled guilty to one count of money laundering after admitting to transferring no less than $21,992,037 in fraudulently obtained loan funds. The funds were deposited into Weston's account and those of 26 other unwitting customers, with the help of a bank employee who processed the fraudulent loans.

Weston and his co-conspirator moved the stolen funds from the bank to accounts at an online brokerage in New York. Weston also admitted to transferring $20,000 of the illicit funds to another bank account. He faces up to 10 years’ imprisonment, a $250,000 fine, and up to 3 years of supervised release.

• $21,992,037 fraudulently obtained loan funds
• 26 unwitting customers
• $20,000 illegally transferred to another bank

• Review customer accounts for patterns similar to the $21,992,037 fraudulently obtained loan scheme involving multiple unwitting customers.
• Scrutinize transactions involving transfers from bank general ledgers to personal accounts, as facilitated by the implicated bank employee.
• Monitor for fund movements from bank accounts to online brokerages based in New York, as used in this laundering scheme.

This case highlights the risks of internal collusion and the exploitation of bank processes to facilitate large-scale money laundering. The involvement of a bank employee in processing fraudulent loans and transferring funds underscores the need for robust internal controls and employee monitoring. Compliance officers must be vigilant for unusual fund flows, especially those involving multiple customer accounts and transfers to online brokerages, to detect and prevent similar schemes that can expose institutions to regulatory and reputational risks.