Gold Dealers Sentenced for Financial Crimes and Gun Crimes | USAO-SDCA

U.S. Assistant Attorney Daniel Silva (619) 546-9713

PRESS RELEASE SUMMARY – December 3, 2021

SAN DIEGO – Global Gold Exchange, LLC and its managers, Richard M. Owen, James Warren and Jeffrey Morrow, were convicted in federal court today for guilty of multiple financial and firearms crimes, including money laundering through their unlicensed money transfer business through false reporting Transactions as “gold” and other precious metals.

After entering confessions of guilt in 2019 and 2020, US District Court judge Cathy Ann Bencivengo sentenced each of the individual defendants to imprisonment. Owen received a 24-month sentence for money laundering and gun conviction. Warren and Morrow received 6 and 8 months’ imprisonment for their convictions for engaging in an unlicensed money transfer business.

As part of their sentences, the defendants agreed to steal approximately $ 2 million in assets and engage in an unlicensed money transfer business. Every defendant is subject to a three-year custodial sentence after being imprisoned.

Special Agents of the Financial Investigations and Border Crimes Task Force of the IRS-Criminal Investigation worked with FBI agents and the United States Postal Inspection Service during the multi-year investigation to uncover millions of dollars in suspicious transactions that took place at the San branch and bank Diego held accounts from Global Gold Exchange or “GGEX”.

Taken together, the defendants illegally laundered cash and funds from a variety of sources – both legal and unlawful – and fraudulently documented the transactions as “a full gold transaction”. Their crimes could best be summed up in pleading agreements previously entered into by all four defendants who admitted to operating GGEX “as an informal money transfer system that facilitates the transfer of funds at home and abroad outside of the traditional financial institution system, and so did without Consideration of the source, destination, purpose or legality of the funds transferred. “

Several victims turned to the court and the defendants, describing how they “stole our dignity”, “deprived us of peace of mind” and “deeply harmed people”. After examining the underlying facts and passing the verdicts, Judge Bencivengo stated that the defendants’ crimes allowed people to “hide assets and improper transactions” while causing “irreparable harm” to the victims.

“Global Gold Exchange and its managers have tried to act as a one-stop shop for money laundering,” said acting US attorney Randy S. Grossman. “Today’s judgments make it clear that the United States will prosecute and prosecute any person, asset or company who attempt to launder the proceeds of crime or who threatens the integrity of our financial system.”

Between 2017 and 2018, Defendants GGEX, Owen, Warren and Morrow used a variety of money laundering, fraud and unlicensed money transfer techniques to conduct unlawful transactions through GGEX and GGEX bank accounts, including transactions with a “local Mexican cartel”; Counterfeit invoices for the sale of gold when in fact it was a receipt of a large cash deposit that was returned by check after GGEX charged a 10 percent fee; Agreement with “customers” to notify law enforcement or tax authorities that the transactions were sales / purchases of precious metals; and recommending customers to send GGEX packages filled with heavy substances to mimic the weight of gold in order to falsely document the nature of GGEX’s transactions.

“Today’s rulings demonstrate the IRS Criminal Investigation’s commitment to disrupting professional innovators who facilitate the commission and disguise of financial crime by concealing it behind legitimate business services,” said special agent Ryan L. Korner of the Los Angeles Field Office. “Aligning with organizations like Global Gold Exchange, LLC and their managers, who used their expertise in our financial systems to launder illegal funds, precludes this avenue for criminal activity.”

“The FBI is proud to work with the IRS Criminal Investigations and the United States Postal Inspection Service to bring our collective agencies to work on money laundering and fraud cases like this one,” said Suzanne Turner, FBI special agent in charge. “Today’s judgments should act as a deterrent to those who seek to launder the proceeds of crime by exploiting our financial system. The FBI and our federal partners will continue to provide all available means to stop the flow of money to criminal organizations. “

“Today’s conviction is an explanation for those who use the US Postal Service to commit fraud,” said Carroll N Harris, postal inspector for the Los Angeles Division of the United States Postal Inspection Service. “Instead of seeing gold bars, these scammers will be behind bars. As always, Postal Inspectors remain committed to keeping the post free of fraudulent mail and will hold those who do so accountable for their crimes. ”

This case is the result of the ongoing efforts of the Financial Investigations and Border Crimes Task Force, a partnership that targets illegal transactions through the financial system. The task force brings together the combined expertise of law enforcement agencies at the federal, state, and local levels, including the IRS-CI, the California Franchise Tax Board, the United States Postal Inspection Service, and the San Diego Police Department. The FBI and the United States Postal Inspection Service worked with the FIBC on this coordinated investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case is being prosecuted by US Assistant Attorney Daniel Silva.

ACCUSED File Number: 19-CR-2936-CAB; 20-CR-3748-CAB

Global Gold Exchange, LLC

Richard M. Owen San Diego, CA Age: 52

James Warren San Diego, CA Age: 50

Jeffrey Morrow San Diego, CA Age: 46

SUMMARY OF THE CONVINCING FIGURES

Money Laundering – Title 18, USC, Section 1956

Maximum sentence: 20 years in prison and a fine of $ 500,000

Operating an Unlicensed Money Transfer Business – Title 18, USC, Section 1960

Maximum sentence: Five years in prison and a fine of $ 250,000

Email Fraud – Title 18, USC, Section 1341

Maximum sentence: Thirty years in prison and a $ 1 million fine

Unlawful Possession of Firearms – Title 18, USC Section 922 (g)

Maximum sentence: Ten years in prison and a fine of $ 250,000

AGENCIES

IRS Criminal Investigation and the Financial Investigations and Border Crimes Task Force

Federal Office for Investigations

United States Postal Inspection Service

https://www.justice.gov/usao-sdca/pr/gold-dealers-sentenced-financial-crimes-and-gun-crimes