Wednesday, March 17, 2010

St. Patrick Day News & Notes

1. Suspended Broward School Board member Beverly Gallagher pleaded guilty today. She'll do about three years in federal prison. (via Miami Herald)

2. "Wachovia Bank charged with violating anti-money laundering law" (via Miami Herald). Wachovia has agreed to pay $160 million in the deferred prosecution agreement:
Federal authorities in Miami have filed criminal charges against Wachovia Bank, alleging it failed to block Mexican currency exchange houses from laundering $110 million in drug proceeds through the bank, officials said Wednesday.
Wachovia Bank, a subsidiary of Wells Fargo & Co., will avoid criminal prosecution by agreeing to pay a $50 million fine and forfeit the $110 million, officials said.
The bank must also implement stronger anti-money laundering systems.
Prosecutors with the U.S. attorney's office, along with officials from the Drug Enforcement Administration, plan to hold a news conference Wednesday afternoon on the allegations.
Wachovia, charged with violating the U.S. Bank Secrecy Act, got out of the foreign money-transfer business two years ago.
In a statement published Monday in the Wall Street Journal, Wells Fargo said: ``We look forward to resolving this issue and are committed to maintaining compliant and effective anti-money laundering policies and practices, and a strong compliance and risk management culture across the integrated organization."

One of lawyers representing the bank is Nick Bourtin of Sullivan & Cromwell. Bourtin clerked for Judge Moreno.

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Anonymous said...

Alex Chilton RIP

Anonymous said...

Why is it that banks and rich people get diversion pleas, but some poor Hispanic lady pushed/tricked into becoming a straw purchaser gets years in prison.

That is Bullshit.