Escolar Documentos
Profissional Documentos
Cultura Documentos
1 NICOLA T. HANNA
United States Attorney
2 LAWRENCE S. MIDDLETON
Assistant United States Attorney
3 Chief, Criminal Division
PUNEET V. KAKKAR (Cal. Bar No. 259816)
4 Assistant United States Attorney
OCDETF Section
5 1400 United States Courthouse
312 North Spring Street
6 Los Angeles, California 90012
Telephone: (213) 894-5728
7 Facsimile: (213) 894-0142
E-mail: puneet.kakkar@usdoj.gov
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Attorneys for Plaintiff
9 UNITED STATES OF AMERICA
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Case 2:17-cr-00738-R Document 31 Filed 06/04/18 Page 2 of 17 Page ID #:127
1 of points and authorities, the files and records in this case, and
4 NICOLA T. HANNA
United States Attorney
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LAWRENCE S. MIDDLETON
6 Assistant United States Attorney
Chief, Criminal Division
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8 /s/
PUNEET V. KAKKAR
9 Assistant United States Attorney
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Case 2:17-cr-00738-R Document 31 Filed 06/04/18 Page 3 of 17 Page ID #:128
1 TABLE OF CONTENTS
2 DESCRIPTION PAGE
4 TABLE OF AUTHORITIES...............................................ii
6 I. INTRODUCTION...................................................1
21 V. CONCLUSION....................................................13
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1 TABLE OF AUTHORITIES
2 DESCRIPTION PAGE
4 Cases
5 United States v. Faiella,
6 39 F. Supp. 3d 544 (S.D.N.Y. 2014) ....................... 6, 7, 8, 9
7 United States v. Murgio,
8 209 F. Supp. 3d 698 (S.D.N.Y. 2016) ............................... 2
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Statutes
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18 U.S.C. § 3553(a)................................................. 9
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18 U.S.C. § 1960........................................... 1, 2, 3, 6
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31 U.S.C. § 5318(g)(1).............................................. 3
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31 U.S.C. § 5330.................................................... 2
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31 U.S.C. §§ 5318(a)(2)............................................. 3
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16 Regulations
17 31 C.F.R. § 1010.100(ff)(5)......................................... 6
18 31 C.F.R. § 1010.100(t)............................................. 6
19 31 C.F.R. § 1010.311................................................ 3
20 31 C.F.R. § 1022.210(a)............................................. 3
21 31 C.F.R. § 1022.380(b)(2).......................................... 2
22 31 C.F.R. § 1022.320(a)(2).......................................... 3
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Case 2:17-cr-00738-R Document 31 Filed 06/04/18 Page 5 of 17 Page ID #:130
10 government signaled to her clients that she was unconcerned with the
16 without fear of being the subject of reports filed with the federal
22 1956(a)(3).
25 release.
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21 (S.D.N.Y. 2016).
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2 to:
22 file reports with the federal government, and create and maintain
23 records pursuant to the Bank Secrecy Act. When MSBs are not
28 MSBs thus operate in, and fuel, a black market financial system, and
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2 U.S.C. § 1960.
12 currency is not illegal in the United States and may be used for
16 controlled substances.
26 address (or “public key”) and a private address (or “private key”).
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2 private key is like the password to access that account. Even though
10 partially anonymous.
11 Although they are legal and have known legitimate uses, Bitcoins
13 and are believed to be the most oft-used means of payment for illegal
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9 those who obtain and use digital currency via and through illicit
13 Bitcoin for fiat currency (or vice versa) through institutions that
26 Supp. 3d 544, 546 (S.D.N.Y. 2014). These exchangers are thus subject
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2 described above.
12 to ensure that she was always accurate. (Id. ¶ 31.) In the course
23 she had been “kicked out” of four major financial institutions, and
27 defendant, honoring this request, stated that she did not want to
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3 UCA-2 began to insinuate the unlawful nature of his funds (which were
8 (Id.) Defendant informed UCA-2 that she did not disclose to the IRS
11 advised UCA-2 that she does not generally track whether a transaction
14 defendant provided UCA-2 with cash (in exchange for his Bitcoin) in
17 exchange of cash for Bitcoin that UCA-2 possessed. This time, the
18 UCA-2 was more explicit with his representation that the source of
20 into one his apartments, stealing only the supply of “coke, meth, and
21 weed” but not the money because it was in “Bitcoin.” (Id. ¶ 29.)
27 continued to assure UCA-2 that she was trustworthy and reputable, and
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5 the transaction two Trader Joe’s paper grocery bags. (Id. at ¶ 33;
7 transaction. (Id.)
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13 While the law does not require that defendant know that her
14 conduct was illegal, that was the case here, which constitutes an
16 DEA undercover agent that she had been “shut out” of financial
18 anyway; this should have alerted her to the inherently suspect nature
20 with the law, she enrolled her sister to assist her with banking
21 transactions.
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2 For example, the fees that defendant charged were greater than
27 those charged by Coinbase, a registered digital currency exchange
institution. See, e.g.,
28 https://support.coinbase.com/customer/portal/articles/2109597-buy-
sell-bank-transfer-fees.
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16 and that she could sustain a high level of business for him.
28 In light of the growth of the dark web and the use of digital
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2 those who use digital currency for illicit purposes. Illicit actors
3 who obtain Bitcoin from unlawful means (e.g., the sale of contraband)
4 seek an outlet to exchange those funds for fiat cash (to reap the
13 criminal business.
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1 family, looking after siblings who have been affected with serious
5 her crime (which allowed the crimes of others to continue) and the
7 months is warranted.
8 V. CONCLUSION
9 For the foregoing reasons, the government respectfully requests
14 January 8, 2018; and (2) $292,264.00 and 25 assorted gold bars seized
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