U.S. v. Ms. R (DMC No. 12749) – Federal Felony Money Laundering ($100,000) and Federal Felony Mortgage Fraud – Not Charged – US Postal Inspection Service Investigated; US Attorney’s Office Reviewed.

Ms. R had become friends with a lady by the name of “Elizabeth” who would borrow money from her quite often. She had met Elizabeth’s husband, a Mexican National, and she became a bit suspicious about her loans. One of these loans involved a $100,000 amount for a down payment on a house for Elizabeth. Ms. R signed a document stating that the money was not a loan, and that it was a gift. This was a knowingly false statement which could constitute Mortgage Fraud.

Several months later, the $100,000 was repaid to Ms. R. Shortly after that time, a Postal Inspector from the U.S. Postal Inspection Service contacted Ms. R about that money. Ms. R admitted that it was not a gift, and that it was repaid. The Postal Inspector informed her that she not only committed Mortgage Fraud, but most likely the repayment of the money was drug proceeds from her friend Elizabeth and her husband. This would constitute Money Laundering.

We became involved and we contacted the Postal Inspector. We then involved an Assistant U.S. Attorney in order to negotiate a “cooperation” deal in which Ms. R would be a witness. We were able to show them that she was unwittingly duped by Elizabeth and her husband. They agreed to not file charges in exchange for cooperation. Ultimately, Elizabeth’s husband was charged and convicted. No charges were ever brought against Ms. R. Initially, she was facing many years in prison due to the severity of the charges and the amount of fraud involved.