2018-07-10 DOJ SDNY press_release 117 KB 3,939 chars

Flight Attendant Pleads Guilty To Airport Security Violations And Unlicensed Money Transmitting

Caption: United States v. Financial Crimes Enforcement Network, et al.

summary

Scott McKinney, a former flight attendant, pled guilty to conspiring to violate airport security by using his crewmember privileges to smuggle over $50,000 in cash per trip between New York and California without a money transmitting license, facing up to five years in prison.

paragraph

Scott McKinney, a 49-year-old former flight attendant from San Diego, pled guilty to conspiring to violate airport security requirements and operate an unlicensed money transmitting business between July and November 2017. He repeatedly used the Known Crewmember (KCM) lane—while off-duty and in uniform—to bypass security screening and transport over $50,000 in cash per trip from New York to California, totaling hundreds of thousands of dollars, without holding a license in New York, California, or with FinCEN. McKinney admitted to agents he was aware of the licensing requirement but chose to ignore it, and he faces a maximum sentence of five years in prison, with sentencing scheduled for October 31, 2018.

narrative

Scott McKinney, a 49-year-old former flight attendant based in San Diego, pled guilty to conspiring to violate airport security requirements and operate an unlicensed money transmitting business between July and November 2017. He exploited his status as a crewmember by wearing his uniform and using the Known Crewmember (KCM) security lane—even when not on duty—to smuggle bulk cash, typically $50,000 or more per trip, from New York City airports like JFK back to California. On some trips, he spent less than two hours on the ground in New York before returning, indicating the operation was designed for speed and evasion. McKinney admitted to Homeland Security Investigations agents on September 15, 2017, that he knew he was required to be licensed as a money transmitter under federal law and by both New York and California, yet he never obtained one. He was not registered with FinCEN, the Treasury’s Financial Crimes Enforcement Network, making his activities illegal under federal money transmission statutes. The scheme relied on the KCM lane’s reduced screening to avoid detection, turning his airline privileges into a tool for illicit cash movement. The case was investigated by HSI and prosecuted by the U.S. Attorney’s Office for the Southern District of New York, and McKinney is scheduled to be sentenced on October 31, 2018, facing a statutory maximum of five years in prison.

Enriched metadata

Scheme: unclassified
Court: Southern District of New York
Outcome: pleaded

Classified unclassified. No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →

Extracted insights

Dollar amounts 1

$50K $50,000 $10K–$100K

Entities 6

person financial crimes enforcement network
person Geoffrey S. Berman
person Judge Failla
person michael d. neff
person scott mckinney
person unlicensed money transmitting business

Triples 12

Scott McKinney pled guilty to conspiring to violate airport security requirements and operate unlicensed money transmitting business
Scott McKinney operated unlicensed money transmitting business
Scott McKinney smuggled bulk cash through airport security
Scott McKinney transported $50,000 or more in cash between California and New York
Scott McKinney used Known Crewmember lane to bypass airport security screening
Scott McKinney lacked money transmitting license in New York and California
Geoffrey S. Berman announced Scott McKinney pled guilty to airport security violations and unlicensed money transmitting
Scott McKinney faces maximum sentence of five years in prison
Judge Failla scheduled to sentence Scott McKinney on October 31, 2018
Michael D. Neff in charge of prosecution of Scott McKinney
Scott McKinney conspired with others between July and November 2017
Scott McKinney was not registered with Financial Crimes Enforcement Network

View original DOJ press releasejustice.gov

Extracted body text (3,939c)

Press Release Flight Attendant Pleads Guilty To Airport Security Violations And Unlicensed Money Transmitting Tuesday, July 10, 2018 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 Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that SCOTT McKINNEY, a former flight attendant, pled guilty today to conspiring both to violate airport security requirements and to operate an unlicensed money transmitting business. U.S. Attorney Geoffrey S. Berman said: “Scott McKinney abused his privileges as an airline employee, including misusing the known crewmember lane, to smuggle bulk cash through security and then across the country, in furtherance of an illegal money transmitting business. McKinney’s scheme is now grounded, and he faces the possibility of time in a federal prison.” According to the Complaint, Indictment, and other documents filed in the case, as well as statements made during the plea proceedings: Between July and November 2017, McKINNEY, a flight attendant based in California, conspired with others to operate an unlicensed money transmitting business and to violate airport security requirements. On several occasions, McKINNEY flew from California to New York to pick up packages containing $50,000 or more in cash at JFK Airport or other locations in New York City. McKINNEY then flew back to California with the cash. On some of these occasions, McKINNEY was on the ground at JFK Airport for two hours or less before flying back to California. At the time of these trips, McKINNEY did not have a money transmitting license in New York or California, and was not registered as a money transmitter with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network. In a statement to agents of Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”) on or about September 15, 2017, McKINNEY admitted that he was aware of the licensing requirement and lacked such a license. To facilitate his illegal money transmitting business, McKINNEY used the Known Crewmember (“KCM”) lane to bypass regular airport security screening. The KCM lane allows approved airline crewmembers to pass through security more quickly and, typically, without having their carry-on luggage screened. On several occasions, McKINNEY wore his crewmember uniform and used the KCM security lane – even though he was not working on those occasions – to smuggle bulk cash through airport security. * * * McKINNEY, 49, of San Diego, California, pled guilty to one count of conspiring both to violate airport security requirements and to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. McKINNEY is scheduled to be sentenced by Judge Failla on October 31, 2018, at 3:30 p.m. Mr. Berman praised HSI for its outstanding work on this case. This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution. Updated July 10, 2018 Topic Financial Fraud Component USAO - New York, Southern Press Release Number: 18-228

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