Man sentenced for money laundering through payroll companies

On Behalf of | Aug 10, 2021 | blog, Embezzlement, White Collar Crimes

On August 4, the New York Attorney General announced that a Northville man was sentenced for a $4 billion money-laundering scheme. The 51-year-old man is alleged to have stolen over $1 billion in diverted payroll funds using payroll services that he operated.

Payroll funds were diverted from 2016-2019

According to the Attorney General, the accused man diverted money from his clients that was meant to go toward employees’ paychecks and tax payments. The accused man operated several business entities, which included two Clifton Park payroll services. The money that was embezzled from, LLC and ValueWise Corporation was allegedly diverted into other business accounts the man controlled.

Some of the money was used to repay loans

Officials say that the accused man was attempting to use some of the money he embezzled to repay millions of dollars in loans that he had taken out under false pretenses. The man is accused of defrauding his own clients as well as some financial institutions.

First-degree money laundering

The man pled guilty to one charge of first-degree money laundering, which carries a sentence of between 8 and 24 years in prison. He was also sentenced to 12 years for several other charges, including conspiracy to commit wire fraud, bank fraud and identity theft. His sentences will reportedly run concurrently.

Fighting white-collar crime charges

If you are accused of embezzlement or money laundering, you may become aware of an investigation before charges are actually filed against you. Since these types of charges usually require prolonged investigations, it’s possible to begin your defense early. In some cases, early action may prevent charges from actually going forward.