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Tag: Victor Kaganov

  • 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.

  • FEDS: Illegal Money-Transmitting Businesse Operating In ‘Shadows’ Funneled $172 Million Offshore For ‘Shell’ Companies; Murky Enterprises Blocked From Using Oregon Banks ‘Like The Corner ATM’

    Tigard, a small city in Oregon, was home to Victor Kaganov. Kaganov has pleaded guilty to operating an unlicensed money-transmitting business that funneled $172 million to at least 50 countries. Prosecutors said he established "shell companies" for Russian clients. PHOTO: Wikipedia

    An Oregon man living in a small town set up “numerous” shell companies for Russian clients and funneled more than $172 million to at least 50 countries, prosecutors said.

    Victor Kaganov, 69, of Tigard, has pleaded guilty to charges of operating an unlicensed money-transmitting business. Tigard is small city whose population is about 47,000.

    Kaganov was born in Russia. He moved to the United States in 1998 and became a naturalized citizen, prosecutors said.

    At least one of the shell companies purported to have a tie to Cyprus, according to records. At least three of the companies used the word “Fishing” in their corporate names. Some used the word “Financial.”

    The announcement of the guilty plea was made in Washington by Assistant Attorney General Lanny A. Breuer, the head of the Criminal Division of the U.S. Department of Justice.

    Using stark language, Breuer said U.S. investigators followed the money to expose the crime and were committed to exposing similar crimes. The FBI has repeatedly warned Congress about a “shadow” banking system and shell companies set up to disguise crimes.

    “Now more than ever, we are determined to bring to justice those who attempt to hide funds in U.S. financial institutions,” Breuer said.

    The probe was led by the office of U.S. Attorney Dwight C. Holton of the District of Oregon. Holton, like Breuer, also used stark language when describing the Oregon caper.

    “When shell corporations are illegally manipulated in the shadows to hide the flow of tens of millions dollars overseas, it threatens the integrity of our financial system,” Holton said. “Sunshine kills the stink of corruption — our laws aim to bring the sunshine in, and we will enforce these laws vigorously.”

    Holton and Breuer were backed by Oregon’s top FBI agent, who also used stark language.

    “We will not allow Oregon to be used like the corner ATM for people in foreign countries,” said Arthur Balizan, special agent in charge. “Crimes like these eat away at the stability and prosperity of the American financial system.”

    Agents determined that Kaganov made at least 4,200 illegal wire transfers.

    “In order to move money in and out of the United States, Kaganov created various shell corporations under Oregon law, and then opened bank accounts into which he deposited money he received from his Russian clients,” prosecutors said. “Kaganov admitted he would then wire the money out of the accounts based on wire instructions he received from his clients.”

    Kaganov’s operation complied with neither Oregon law nor U.S. law, prosecutors said.