NEWARK, NJ – Five men working in New York City’s Diamond District were arrested on Thursday for illegally processing over $600 million through unlicensed money transmitting businesses.
Raj Vaidya, 26; Rakesh Vaidya, 51; Shrey Vaidya, 23; Neel Patel, 26; and Youssef Janfar, 57, were charged with one count each of operating and aiding and abetting the operation of an unlicensed money transmitting business.
According to court documents, the defendants used various companies as fronts to conduct illegal financial transactions.
None of these companies were registered as money transmitting businesses with any regulatory bodies.
The charge carries a maximum penalty of five years in prison and a fine of $250,000 or twice the gross amount gained or lost, whichever is greater. The investigation was led by multiple agencies including the IRS – Criminal Investigation and the U.S. Drug Enforcement Administration.