Today SDNY brings the first criminal BSA charge ever brought against a United States broker-dealer.

Manhattan U.S. Attorney Announces Bank Secrecy Act Charges Against Kansas Broker Dealer

Charge to Be Deferred For Two Years Under an Agreement Requiring Central States Capital Market to Admit Its Conduct and Pay Penalty of $400,000

WHO IS THIS SCOTT TUCKER? TIED TO ANY OF OUR BAD ACTORS?

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced criminal charges against Central States Capital Markets, LLC (“CSCM”), consisting of one felony violation of the Bank Secrecy Act (“BSA”), based on CSCM’s willful failure to file a suspicious activity report (“SAR”) regarding the illegal activities of its customer Scott Tucker.

https://www.justice.gov/usao-sdny/pr/manhattan-us-attorney-announces-bank-secrecy-act-charges-against-kansas-broker-dealer

>>4375887

>>4375959

moar on the SDNY BSA charge and this

SCOTT TUCKER BAD ACTOR

In October 2015, U.S. Bank entered into its own consent order with the OCC regarding deficiencies in its anti-money laundering compliance. Then in August 2016, the Minneapolis bank disclosed that the U.S. Attorney’s office in Manhattan was investigating its relationship with an indicted payday loan baron named Scott Tucker.

Tucker eventually went to prison. In February 2018, U.S. Bank entered into a deferred prosecution agreement and agreed to pay $613 million in penalties. The bank acknowledged that it had been aware of various red flags but continued to do business with Tucker, who had generated millions of dollars in profits.

https://www.americanbanker.com/opinion/beware-the-tidy-narrative-about-operation-choke-point