Chief Executive Officer Of A Las Vegas-Based Company Convicted For Multimillion-Dollar Fraud And Money Laundering Scheme
summary
Martin Mizrahi, CEO of a Las Vegas-based company, was convicted of wire fraud, bank fraud, and money laundering for orchestrating a multimillion-dollar scheme to defraud banks and credit card companies of almost $8 million and launder over $4 million in illicit funds.
paragraph
Martin Mizrahi was convicted of wire fraud, bank fraud, money laundering, and other offenses for his participation in multiple schemes to defraud banks and credit card companies of almost $8 million and to launder more than $4 million in fraud and narcotics proceeds. He used his company as a front to launder millions of dollars in illicit funds and to deceive credit card companies into processing sham charges. Mizrahi faces charges including conspiracy to commit wire fraud and bank fraud, wire fraud, bank fraud, conspiracy to commit money laundering, and aggravated identity theft.
narrative
Martin Mizrahi, the CEO of a Las Vegas-based company, was convicted of wire fraud, bank fraud, money laundering, aggravated identity theft, and related charges after orchestrating a multimillion-dollar scheme to defraud banks and credit card companies of nearly $8 million and launder over $4 million in illicit funds. He used his company as a front to process fraudulent credit card charges—backed by forged invoices—on stolen or unauthorized cards, while also converting bulk cash narcotics proceeds from a Mexican cartel into cryptocurrency for anonymous transfers. The fraud included a business email compromise that stole over $3 million from a New York nonprofit. Mizrahi's scheme targeted banks and credit card companies between February and June 2021, with no legitimate goods or services provided. He faces up to 125 years in prison, including a mandatory two-year consecutive sentence for aggravated identity theft, with sentencing to be determined by the court. The case was prosecuted by the Southern District of New York, following an FBI investigation. Mizrahi's conviction sends a resounding message that individuals who steal and introduce illicit funds into the U.S. financial system will be held accountable.
Classified financial-fraud(confidence 97%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 67% / precision 23%. detection rule →
Parties
aggravated identity theftbulk cash narcotics proceedsdamian williamsfalse invoicesmartin mizrahimoney into bitcoin
Keywords
fraudmoney launderingwhich carriessentence prisonwhichcredit cardcarries maximummaximum sentencemizrahimoneylaunderingfraud moneycard companiesnarcotics proceedscredit
Extracted insights
Dollar amounts 3
- $8.00M $8 million $1M–$10M
- $4.00M $4 million $1M–$10M
- $3.00M $3 million $1M–$10M
Entities 8
- person aggravated identity theft
- person bulk cash narcotics proceeds
- scheme_term conspiracy to commit money laundering
- scheme_term conspiracy to commit wire fraud and bank fraud
- person damian williams
- person false invoices
- person martin mizrahi
- person money into bitcoin
Triples 16
- Martin Mizrahi was convicted of wire fraud, bank fraud, money laundering, aggravated identity theft, and other offenses
- Damian Williams announced Martin Mizrahi was convicted
- Martin Mizrahi used his company as a front to launder millions of dollars
- Martin Mizrahi deceived credit card companies into processing additional millions of dollars in sham charges
- Martin Mizrahi participated in multiple schemes to defraud banks and credit card companies
- Martin Mizrahi laundered more than $4 million in fraud and narcotics proceeds
- Martin Mizrahi accepted bulk cash narcotics proceeds
- Martin Mizrahi converted money into Bitcoin
- Martin Mizrahi sent money to anonymous cryptocurrency wallets
- Hackers stole more than $3 million dollars from a New York City-based non-profit organization
- Martin Mizrahi ran nearly $8 million in fraudulent credit card charges
- Martin Mizrahi prepared false invoices
- Martin Mizrahi sent false invoices to banks and credit card companies
- Martin Mizrahi was convicted of conspiracy to commit wire fraud and bank fraud
- Martin Mizrahi was convicted of conspiracy to commit money laundering
- Martin Mizrahi was convicted of aggravated identity theft
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Press Release Chief Executive Officer Of A Las Vegas-Based Company Convicted For Multimillion-Dollar Fraud And Money Laundering Scheme Monday, March 4, 2024 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Damian Williams, the United States Attorney for the Southern District of New York, announced today that MARTIN MIZRAHI, a/k/a “Marty Mizrahi,” was convicted of wire fraud, bank fraud, money laundering, aggravated identity theft, and other offenses for his participation in multiple schemes to defraud banks and credit card companies of almost $8 million and to launder more than $4 million in fraud and illegal narcotics proceeds. The verdict followed a 12-day trial before U.S. District Judge J. Paul Oetken. U.S. Attorney Damian Williams said: “Martin Mizrahi brazenly used his company as a front to launder millions of dollars in drug and fraud proceeds and to deceive credit card companies into processing additional millions of dollars in sham charges. The jury’s unanimous verdict sends a resounding message that individuals who steal and introduce illicit funds into the U.S. financial system will be held accountable.” According to the evidence presented in court during the trial: From at least in or about February 2021 through at least in or about June 2021, MIZRAHI and his co-defendants participated in multiple schemes to defraud banks and credit card companies and to launder narcotics proceeds in addition to the fraud proceeds received. Beginning in or about February 2021, MIZRAHI began accepting bulk cash narcotics proceeds, which he laundered for individuals associated with a Mexican-based cartel by converting the money into Bitcoin and then sending it to anonymous cryptocurrency wallets provided to him by co-conspirators. In addition, MIZRAHI laundered fraud proceeds sent to his company by wire transfer, which he also converted into cryptocurrency before sending it to anonymous cryptocurrency wallets. Those funds were obtained through, among other things, a business email compromise scheme in which a New York City-based non-profit organization had more than $3 million dollars stolen from it by hackers. Between February and June 2021, MIZRAHI laundered a total of more than $4 million in fraud and narcotics proceeds. In addition, between April and June 2021, MIZRAHI participated in a credit card fraud scheme in which he ran nearly $8 million in fraudulent credit card charges through his company. Those charges were run on multiple credit cards issued in the names of third parties, some of which had been stolen, and without any legitimate work being done or services being provided. As part of the scheme, MIZRAHI prepared false invoices which he sent to banks and credit card companies to justify the charges. * * * MARTIN MIZRAHI, 51, of Las Vegas, Nevada, was convicted of (i) conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison; (ii) wire fraud, which carries a maximum sentence of 20 years in prison; (iii) bank fraud, which carries a maximum sentence of 30 years in prison; (iv) conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; (v) money laundering, which carries a maximum sentence of 20 years in prison; (vi) aggravated identity theft, which carries a mandatory minimum sentence of two years in prison to run consecutively to any other prison terms imposed; and (vii) conspiracy to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison. The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Mr. Williams praised the Federal Bureau of Investigation for its outstanding work on the investigation. The prosecution of this case is being handled by the Office’s White Plains Division and the Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Benjamin Klein and Emily Deininger are in charge of the prosecution, with the assistance of Paralegal Specialists Dean Iannuzzelli and Nerlande Pierre. Contact Nicholas Biase, Lauren Scarff (212) 637-2600 Updated March 4, 2024 Topics Financial Fraud Identity Theft Component USAO - New York, Southern Press Release Number: 24-081
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Press Release Chief Executive Officer Of A Las Vegas-Based Company Convicted For Multimillion-Dollar Fraud And Money Laundering Scheme Monday, March 4, 2024 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Damian Williams, the United States Attorney for the Southern District of New York, announced today that MARTIN MIZRAHI, a/k/a “Marty Mizrahi,” was convicted of wire fraud, bank fraud, money laundering, aggravated identity theft, and other offenses for his participation in multiple schemes to defraud banks and credit card companies of almost $8 million and to launder more than $4 million in fraud and illegal narcotics proceeds. The verdict followed a 12-day trial before U.S. District Judge J. Paul Oetken. U.S. Attorney Damian Williams said: “Martin Mizrahi brazenly used his company as a front to launder millions of dollars in drug and fraud proceeds and to deceive credit card companies into processing additional millions of dollars in sham charges. The jury’s unanimous verdict sends a resounding message that individuals who steal and introduce illicit funds into the U.S. financial system will be held accountable.” According to the evidence presented in court during the trial: From at least in or about February 2021 through at least in or about June 2021, MIZRAHI and his co-defendants participated in multiple schemes to defraud banks and credit card companies and to launder narcotics proceeds in addition to the fraud proceeds received. Beginning in or about February 2021, MIZRAHI began accepting bulk cash narcotics proceeds, which he laundered for individuals associated with a Mexican-based cartel by converting the money into Bitcoin and then sending it to anonymous cryptocurrency wallets provided to him by co-conspirators. In addition, MIZRAHI laundered fraud proceeds sent to his company by wire transfer, which he also converted into cryptocurrency before sending it to anonymous cryptocurrency wallets. Those funds were obtained through, among other things, a business email compromise scheme in which a New York City-based non-profit organization had more than $3 million dollars stolen from it by hackers. Between February and June 2021, MIZRAHI laundered a total of more than $4 million in fraud and narcotics proceeds. In addition, between April and June 2021, MIZRAHI participated in a credit card fraud scheme in which he ran nearly $8 million in fraudulent credit card charges through his company. Those charges were run on multiple credit cards issued in the names of third parties, some of which had been stolen, and without any legitimate work being done or services being provided. As part of the scheme, MIZRAHI prepared false invoices which he sent to banks and credit card companies to justify the charges. * * * MARTIN MIZRAHI, 51, of Las Vegas, Nevada, was convicted of (i) conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison; (ii) wire fraud, which carries a maximum sentence of 20 years in prison; (iii) bank fraud, which carries a maximum sentence of 30 years in prison; (iv) conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; (v) money laundering, which carries a maximum sentence of 20 years in prison; (vi) aggravated identity theft, which carries a mandatory minimum sentence of two years in prison to run consecutively to any other prison terms imposed; and (vii) conspiracy to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison. The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Mr. Williams praised the Federal Bureau of Investigation for its outstanding work on the investigation. The prosecution of this case is being handled by the Office’s White Plains Division and the Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Benjamin Klein and Emily Deininger are in charge of the prosecution, with the assistance of Paralegal Specialists Dean Iannuzzelli and Nerlande Pierre. Contact Nicholas Biase, Lauren Scarff (212) 637-2600 Updated March 4, 2024 Topics Financial Fraud Identity Theft Component USAO - New York, Southern Press Release Number: 24-081