A network of at least 11 brothels in midtown Manhattan that was investigated and dismantled last year used dozens of personal and commercial accounts at some of the largest financial institutions in the United States to deposit more than $1.4 million in cash over five years.
The recent revelation that an alleged Oregon terrorist financier held funds in three separate bank accounts opened by attorneys underscores a potential reputational risk for banks, say analysts.
Federal cases against attorneys, accountants and other professionals suspected of washing illicit proceeds have risen by roughly 30 percent in the year since the FBI began actively targeting third-party facilitators, according to the head of the bureau's money laundering unit.
The United States Justice Department issued a press release announcing that Carl Ferrer, co-founder and CEO of Backpage, and several Backpage-related corporate entities have entered guilty pleas to money laundering charges.
April 12, 2018
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