Posted on 03/17/2010 5:45:48 PM PDT by nickcarraway
Wachovia bank executives have admitted that the banking giant laundered millions of dollars for Mexican drug lords between 2003 and 2008, prosecutors announced in Miami this afternoon.
The bank has promised to pay $160 million in fines and penalties and to set up new safeguards within a year to prevent drug money from coming through the bank. If it fails in that effort, Wachovia could face criminal charges, says Jeffrey Sloman, U.S. Attorney for the Southern District.
"Wachovia's blatant disregard for our banking laws gave international cocaine cartels a virtual carte blanche to finance their operations," Sloman said at a meeting in downtown Miami. "[They] laundered at least $110 million in drug proceeds."
The feds built a case against Wachovia around the bank's relationship with Mexican exchange banks called CDCs (or casas de cambio).
Wachovia execs knew as early as 1996 that the Mexican CDCs were hot spots for drug money but kept doing business with them anyway, Sloman says.
The American bank routed billions of dollars in the past ten years through the CDCs without any effective oversight into where the cash was coming from.
Prosecutors were able to trace some of that money to the purchase of several airplanes used in drug runs, which led to more than 20,000 kilos of cocaine being seized by investigators.
Under an agreement signed by federal Judge Joan Leonard this afternoon, Wachovia will forfeit $110 million in illegal proceeds from drug sales and pay an additional $50 million fine.
So, first it is liar loans, now it is drug cartel money.
How many OTHER TBTF banks have been doing this????
Have the Mexican Drug Lords BOUGHT our politicians????
WOW.
If the banksters responsible for this do not do hard jail-time, that does not bode well for the peace of our nation. Millions are enraged at what they are doing to our financial stability and our standard of living.
Which means it violated money laundering laws. I am a money laundering compliance officer. Someone was not doing their job.
There. Fixed it.
Why isn't some corporate officer going to jail for this one?
Okay all of those that believe that they could launder millions through our business and just pay a fine and not go to jail raise there hands....( crickets chirping)
ping
RICO would have to be used on banks, Congress and Wall Street. All of them are in on it. Thieves, filthy thieves the lot of them. This nation needs a scourging.
/obscure?
This is exactly why the War on Drugs does not work.
Legalization has its own very serious problems. However, the drug business is big business “legally’ in this country.
Good luck.
Meanwhile we are incarcerating people for years on cocaine possession, etc when we are releasing pedophiles and dangerous criminals...Our prison and legal system is upside down.
Release or short circuit the drug sentences and keep the dangerous violent in prison!
And, those involved in money laundering or other illegal money drug scams should be prosecuted to the fullest extent of the law...including the coprorations that have been involved.
That is my question also!
I thought Wachovia merged with Wells Fargo??
Sheesh!
I knew someone high up on the inside who told me that they gave out home loans to people they were actually hoping would go into foreclosure. Their reasoning was that they could get someone in the house who would pay notes for a year or so, and when they defaulted, the bank would take over ownership and sell the property at a profit, taking advantage of the ever-rising housing market.
Depending who you ask, Wachovia acquired First Union, or other way around. Bottom line was First Union’s “label” was screwed, Wachovia was looking clean as the un-driven snow. You probably get the idea..
As of recent, yes, they are now Wells Fargo.
BUMP!
Fines and penalties??? Why are not the CEO, CFO, and other officers and board members on their way to prison?
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