California Drug Wholesalers Accused of Smurfing Millions of Dollars of Cash Withdrawals

By Daniel Bethencourt

Four individuals and a medical supply firm in California face trial for allegedly structuring some $20 million of transactions over a 5-year period in efforts to avoid detection by financial institutions. In a 28-page indictment, federal prosecutors claim that Richard Kayseryan, owner of TriMed Medical Wholesalers in Burbank, California, issued hundreds of checks, each worth thousands of dollars, to at least five co-conspirators and a network of at least 14 shell companies they controlled as part of a scheme to prevent currency transaction reports from being filed to the U.S. Treasury Department. The group of co-conspirators, which includes the owner...