TEXAS-SIZED MYSTERY: Day-Care Operator Accused Of Routing ‘At Least’ $60 Million Through Unlicensed Money-Transmitting Business

Christina Bates

A Greater Dallas woman who ran a day-care center has been accused by federal prosecutors in Texas of operating an unlicensed money-transmitting business through which “at least” $60 million flowed between October 2004 and January 2008.

The case against Christina Sang Bates is the second major case involving money-transmitting businesses to make the news in recent weeks. On March 1, Victor Kaganov, 69, of Tigard, Ore., pleaded guilty to charges that he funneled $172 million through his unlicensed business after setting up shell companies for Russian clients.

In the Kaganov case, prosecutors said money was funneled to at least 50 countries. The FBI has repeatedly warned Congress about a “shadow” banking system and shell companies set up to disguise crimes.

Bates also is known as Sang Tran Bates, Sang Tran Johnson and Sang Johnson Bates. Prosecutors said she used her names and the names of companies such as Transasia Travel Inc., Tat-Que Huong Inc. and Jr. Academy of McKinney Inc. as part of the fraud.

Jr. Academy is the day-care center. Bates violated both U.S. law and Texas law, prosecutors said. The case initially was filed under seal on March 10, but the seal was lifted March 29. Bates initially was jailed, but has been released on conditional bond.

Prosecutors are seeking the forfeiture of $60 million and the building that housed the day-care center. The now-shuttered center was located on a street known as Bountiful Grove.