The United States Attorney Roger B. Handberg has announced that a grand jury has returned an indictment charging Daniel Liburdi, Joseph Scotto, Gregory Walker, and Frank Carbone III with conspiracy to commit bank fraud and conspiracy to commit money laundering.
Additionally, Liburdi and Carbone III are also charged with bank fraud. If convicted, each bank fraud and conspiracy to commit bank fraud offense carries a maximum penalty of 30 years in federal prison, while the conspiracy to commit money laundering offense carries a maximum penalty of 20 years in federal prison.
The indictment also reveals that the United States intends to forfeit three residences in Miami Beach and one in the U.S. Virgin Islands, which are alleged to be traceable to the proceeds of the offense. Furthermore, the government is seeking an order of forfeiture in the amount of $128,144,908.66.
According to the indictment, Liburdi, Scotto, Walker, and Carbone conspired to commit bank fraud. They accomplished this by submitting fraudulent applications to U.S. financial institutions in order to obtain merchant processing accounts.
These applications included the personal information of unsuspecting individuals, which the conspirators obtained under false pretenses. Once they fraudulently acquired these merchant accounts, they used them to accept credit and debit cards for their e-commerce business. This business employed high-risk and unethical sales techniques. By using the personal information of innocent individuals, the conspirators shielded themselves from personal liability and risk associated with their business model.
This had a negative impact on the individuals affected, as well as the financial institutions that rely on honest and complete disclosures of ownership when offering merchant services. The conspirators managed to process over $128 million dollars in criminal proceeds through these fraudulent accounts.
The defendants are also accused of conspiring to launder the money they obtained through their criminal activities. They allegedly used the proceeds from their bank fraud to pay for various services to further their scheme, including advertising. By engaging in these transactions, the conspirators shared in the profits generated from the bank fraud and transferred the illicit funds between bank accounts controlled by the conspirators.
In the world of federal criminal law, an indictment serves as a formal charge against a defendant for allegedly committing one or more violations. It is important to remember that every defendant is considered innocent until proven guilty.
Homeland Security Investigations (Tampa) and the Internal Revenue Service – Criminal Investigation (Tampa) collaborated on this case. The Pasco Sheriff’s Office, along with Homeland Security Investigations (Miami and New York), and the Internal Revenue Service – Criminal Investigation (Miami and New York), offered additional support during the investigation. Assistant United States Attorney Adam J. Duso will handle the prosecution.