YORBA LINDA (CBSLA) — A Yorba Linda man accused of working an unlawful Bitcoin and cash laundering enterprise has struck a plea cope with federal investigators.
Kais Mohammad, 36, who was also called “Superman 29,” agreed to plead responsible to 1 depend every of working an unlicensed cash transmitting enterprise, cash laundering and failing to take care of an efficient anti-money laundering program, in keeping with a plea settlement filed Wednesday.
Federal investigators say HeroCoin, which was owned and operated by Mohammad, was an unlawful virtual-currency cash providers enterprise, exchanging Bitcoin for cash and charging fee of as much as 25%. Mohammad allegedly met with shoppers and public places and exchanged foreign money for them. In response to the Division of Justice, Mohammad didn’t inquire as to the supply of the funds and infrequently knew the funds had been proceeds of felony exercise.
Mohammad later bought a community of ATM-type kiosks and put in them in malls, gasoline stations and comfort shops all through Los Angeles, Orange, Riverside and San Bernardino counties, in keeping with federal officers. At these HeroCoin-branded kiosks, clients had been in a position to make use of cash to buy Bitcoin, or promote Bitcoin in exchange for cash that was allotted onsite.
Prosecutors say Mohammad deliberately did not register the corporate with the U.S. Treasury Division’s Monetary Crimes Enforcement Community, develop an anti-money laundering program, or alert federal officers to transactions greater than $10,000 or transactions over $2,000 involving clients suspected to be concerned in felony exercise. Mohammad additionally admitted to neglecting to place a program in place to get identification for patrons conducting a number of transactions of as much as $3,000 on his kiosks or confirm any identification supplied by the particular person conducting the transaction.
In response to the plea deal, Mohammad admitted to exchanging between $15 million and $25 million from in-person exchanges and transactions occurring at his kiosks.
A listening to has not but been scheduled for Mohammad to enter his responsible plea. He faces a statutory most sentence of 30 years in federal jail and has agreed to forfeit the cash, cryptocurrency and 17 Bitcoin ATMs that he operated.