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| Volume No. 1 Issue No. 26 - Friday, August 17, 2002 |
The Story of How the FBI Trapped Two Confessed Money Launderers
 by Thomson Fontaine
It is a hot day on April 13, 2000 in Dominica, and an FBI undercover agent (We will call him agent zero) has just arrived in Roseau, the Nations capital. He is hot on the trail of money launderers and he is determined to put an end to the work of two individuals, whom he has been told are involved in money laundering.
For years now, the US government has been increasingly worried about the explosive growth of offshore centers in the Caribbean. Suddenly, countries like Dominica, St. Kitts and Grenada were offering safe havens for offshore banks to operate.
Not only was the US government worried about the drug dealers and terrorists, they were also worried that legitimate US businesses might be tempted to go offshore and thus deny the IRS millions in tax revenues. The FBI had to become more aggressive.
Agents were added to field offices in New York and Miami. Money was made available by the government to combat money laundering. In the Caribbean, governments were been encouraged to set up offices to police the offshore banks. The heat was on.
In order to attract traffic from more established centers like the Bahamas and the Cayman Islands, and desperately needing cash, the smaller Caribbean Islands were offering the minimum background checks, and providing safe havens for moving billions of dollars across countries borders.
Therefore, they came. Bankers, businessmen, crooks, shady underworld characters, all looking for a piece of the action. At one time, Dominica alone received over 4000 applications for offshore banking licenses. The larger and more established bankers built structures in Roseau with names like Banc Caribe, and Dominica British Bank and Trust. The less well established paid their fees, got a name and built a website.
Money laundering as the name implies means making dirty money clean. So for instance, a drug dealer with excessive sums of money, might set up several fake businesses like grocery shops, car washes etc. , aiming to disguise the real source of his money.
The more sophisticated hire brokers, banks or businessmen, who for a fee will provide legitimate looking invoices, letterheads etc. and pretend that they are making payments to clients for services rendered. It was this group that Agent Zero was targeting, and his investigations had taken him to Roseau, Dominica.
Agent Zero introduced himself to Julian Giraud a Dominican businessman and his business partner, American Brian Boeger, as a consultant for an organization dealing in illegal funds. He needed access to offshore banks to use to assist him in laundering the illegal money of his clients. He informed Giraud and Boeger that he was currently being charged 8 percent by the individual doing this service for him in the United States. Giraud and Boeger volunteered that they could provide the same service, complete with false invoices, but would only charge five percent.
More discussion followed. Agent Zero looked the part. He appeared rich, spoke the language, and had the confidence of a seasoned businessman. He produced shiny business cards to prove his claims with an address in Broward County, Florida. In the end, they shook hands and Agent Zero left Dominica. Over the next several days, agent zero called repeatedly. What Giraud and Boeger did not know was that the conversation was been taped including that of the first meeting in April. In the end, Agent Zero made 43 recordings.
Three weeks later on May 8, 2000, Agent zero wires $50, 000 to South Trust Bank, St. Petersburg, Florida for credit to First International Bank. On May 10, 2000, he receives an incoming wire transfer of $47,500 that was sent from South Trust Bank of Florida through an account at Banc Caribe Dominica Ltd. They had taken the bait. Giraud and Boeger were returning the $50,000 less the five percent laundering fee.
A few days later, another wire transfer from Agent Zero, but this time for $145,000. Six days later, he receives $139,650, again drawn from Banc Caribe Dominica Ltd. On May 22, 2000, Agent Zero returns to Dominica. This time, he has an even bigger scheme. He informs Giraud and Boeger that he has new investors in the United States who would be tricking their victims into writing checks to an offshore company.
Giraud and Boeger confirm that they could provide such an offshore company for the fraud. True to their promise, nine days later they provide Agent Zero with a name: Northeast Holdings Inc. They were ready to receive the checks. There was one other issue though. As Agent Zero recalls it, in one of the conversations he told Boeger and Giraud that he would need to receive some of the money wired back to a bank account and the remainder in cash, less of course the five percent fee. "No problem", Boeger remarks. In fact, don't be surprised if the cash is delivered in Miami by a woman.
On his return, Agent Zero sends another wire transfer of $210, 000. Seven days later, he receives an incoming transfer of the amount less the five percent fee. On June 15, he calls Giraud to inform him that he had received some checks from the defrauded investors, and they were made out in the name of Northeast Holdings Inc. Giraud provides his office address in Roseau and a few days later, the first FEDEX package arrives with a few checks. Between June 21 and July 18, 2000 a total of eight checks totaling $393,000 are sent via FEDEX.
By the time, Agent Zero completed business with Giraud and Boeger, he had sent over $800,000, and the two had made about $47,860 in fees. Now armed with the taped recordings of the conversations and a littered paper trail, Agent Zero was prepared to move in for the arrest.
On November 19, 2001, Giraud boards an American Eagle flight from Melville Hall airport. His traveling companion is then finance minister Ambrose George. Days earlier, he had been in contact with Agent Zero. He was been sent two prepaid tickets to meet a group of
bankers in the Miami area who were looking to do business in Dominica. And yes, the finance minister was welcome to participate since this would provide a unique opportunity for Dominica.
American Eagle flight 538 lands in Puerto Rico and Giraud and George are engaging in friendly chatter as they make their way across the terminal to take the next flight out to Miami. Suddenly, they are approached by two well-dressed, clean-shaven men in their early forties. Looking directly at Giraud, one speaks up. He wipes out a badge. "Stop!" he says. "We are federal agents and you are under arrest for conspiracy to commit money laundering. You have a right to remain silent......" Giraud looks up in surprise as he is hustled quickly out of the airport. It is over.
A few days later, Giraud completes his trip to Miami, where he is denied bail and held for trial. Several days later, his business partner is arrested and is let out on bail.
Six months later, and almost two years to the day since the first $50,000 wire transfer, the two plead guilty to conspiracy to commit money laundering. On August 13, 2002, a Miami judge sentence the two to 37 months in prison and a $7,500 fine. They are also ordered to jointly repay $197,000 in restitution.
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