Colorado Man Indicted for Human Trafficking, Money Laundering

By Olvia Katradian

A Colorado CEO is accused of luring foreigners to the United States to work for a nonexistent university and then stealing portions of their salaries after setting them up with other jobs in what the government has called an "elaborate scheme."
Kizzy Kalu, 47, of Highlands Ranch, Colo., allegedly enticed foreign nurses to work as teachers at an Adam University in Denver, an institution that Kalu's alleged accomplice, Philip Langerman, 77, of McDonough, Ga., made up, according to a federal indictment.
Langerman was also indicted, but remains at large. Kalu is being held by U.S. Marshals, and phone calls to his companies were not returned.
Kalu promised a salary of between $68,000 and $72,000 annually for the fictional teaching positions through the Foreign Healthcare Professional Group (FHPG), a company he operated, according to the indictment. The fictional positions were considered to be "specialty occupations" under U.S. immigration regulations.
Langerman obtained state authorization in 2005 for Adam University to deliver degree programs in Colorado, based on false claims, according to the indictment. This status permits a university to submit an unlimited number of H-1B specialty occupation visas, which allow a foreign national to be employed while in the United States.
The foreign nationals had to pay fees to FHPG and Kalu in exchange for assistance in obtaining the visas, according to the indictment.
Once they were in the United States, Kalu informed them that the aforementioned positions were no longer available, and put them to work at various long-term care facilities, the indictment states.
The facilities paid the foreign nationals' salaries to Kalu's company, but Kalu allegedly passed on only 65 percent of the wages to his employees, which was 50 percent of the salary originally promised to them by FHPG and less than 50 percent of what Adam University told the United States they would be paid, according to the indictment.
Kalu was arrested without incident last Sunday and arraigned Thursday when a federal magistrate judge ordered that he be released on bond. The U.S. Attorney's Office immediately appealed to the District Court, which then ordered that Kalu not be released until the appeal is heard Thursday. Kalu is in federal custody, being held by the U.S. Marshals, despite other news reports that he is out on bond, according to the U.S. Attorney's Office.
"He was not let off on bond. Those stories are completely inaccurate," Jeff Dorschner, a spokesman for the U.S. Attorney's Office, told ABC News today.
Dorschner said the U.S. Attorney's Office believes Kalu is a flight risk. "The reason we don't want him released is we think he will flee the country and not return for future court appearances," said Dorschner.
Kalu faces 132 charges, including visa fraud, forced labor, money laundering, human trafficking, criminal forfeiture and mail fraud. If convicted, he could spend up to 20 years in prison.
Langerman is listed as a Ph.D and one of Adam University's directors, according to the indictment. Kalu is a graduate of the University of Jos in Nigeria, according to his online LinkedIn profile.
Kalu is the chairman and CEO of Global Energy Initiatives (GEI), which manufactures and deploys hydro-kinetic power generators to Brazil and other developing countries, according to its website. Photographs on Kalu's Facebook page Saturday showed Kalu with his wife, Nicole, at the White House for an energy briefing in September. The photos were taken down today and are no longer publically available.
Kalu also operates the Global Village Hope Foundation, an international voluntourism program whose motto is "You are the hope for the hopeless."
On the foundation's website, supporters are asked to send donations to 5630 Wickerdale Lane in Highlands Ranch, Colo., Kalu's residence.
Michael Hearns an Anti Money Laundering specialist with over 24 years of AML experience can also be found at http://www.launderingmoney.com/ and on twitter at : http://twitter.com/#!/LaunderingMoney http://moneylaunderingworld.blogspot.com/   and http://launderingmoney.com/

Feds: Tampa car dealer received more than $3 million in Hezbollah-related money-laundering scheme

By Danny Valentine
Times Staff WriterTampa Bay Times

A Tampa used car dealer received more than $3 million from Hezbollah-related organizations as part of a large money-laundering scheme designed to funnel cash to the terrorist group, the U.S. government claims.
Mansour Brothers Auto Trading Inc., which specializes in exporting vehicles, is one of 30 used car dealers that were wired at least $329 million over a four-year period, according to the complaint.
The case, filed late last week by the U.S. Attorney's office for the Southern District of New York, is seeking the seizure of those proceeds — including the $3 million sent to Mansour Brothers, located on Kennedy Boulevard. It follows an investigation led by the U.S. Drug Enforcement Agency.
Mansour Brothers received 40 wire transfers totalling about $3.25 million between 2007 and 2011, according to the complaint. It does not allege that any of the used car dealerships, including Mansour Brothers, knew about the money laundering, and they are not being charged criminally.
Tim Shusta, a Tampa attorney who represents Sammy Mansour of Mansour Bros., said Saturday that his client had no knowledge of the scheme.
He also said the money was wired to buy cars and ship them to Africa. They didn't make a profit of $3 million from the transactions.
"It's not clear to me that they have the right to recover the $3 million," Shusta said.
Federal authorities described the operation this way: Lebanese financial institutions, including a bank and two exchange houses linked to Hezbollah, wired funds to the United States, where the money was used to buy cars. The cars were then shipped to West Africa and sold for cash.
The cash from those car sales was then taken, along with money from drug trafficking and other crimes, to Lebanon. Hezbollah members and supporters were involved at various points, including financing and facilitating the purchase of some of the used cars.
"The intricate scheme laid out in (the) complaint reveals the deviously creative ways that terrorist organizations are funding themselves and moving their money," said Preet Bharara, U.S. Attorney for the Southern District of New York.
Hezbollah is a radical Islamic group that aims to create an Iranian-style Islamic republic in Lebanon. It is strongly anti-Israel and has been linked to bombings at a U.S. embassy and Marine barracks in the 1980s. Hezbollah, which holds about 10 percent of the seats in the Lebanese Parliament, receives weapons, money and organizational support from Iran, according to the U.S. Department of State.
Shusta said his client had no way of knowing that money was being passed to him by anyone who had anything to do with terrorism.
"They are an innocent party in the whole thing," Shusta said. "There are no allegations that allege that our client did anything wrong."
Shusta said Mansour Bros. is a very small company that's been open since 2005.
His client has been living in Tampa for about 30 years, he said.

Michael Hearns an Anti Money Laundering specialist with over 24 years of AML experience can also be found at http://www.launderingmoney.com/ and on twitter at : http://twitter.com/#!/LaunderingMoney http://moneylaunderingworld.blogspot.com/   and http://launderingmoney.com/

Hezbollah Money Laundering Probe Focuses On Tulsa Car Dealership

Havonnah Johnson,

News 9

The DEA launches an investigation into a multi-million dollar money laundering scheme which starts in Oklahoma and involves Americans helping terrorists.

The scheme begins at used cars lots which are used as a cover for drugs and illegal activity.

Federal agents say it is a complicated scheme to cover the funding of terrorists. It involves 20 states and least 30 used car lots. The investigation is just beginning.

Undercover agents closed in on one used car dealership in Tulsa Friday. It is but one of dozens officials say are involved in a multi-layered money laundering scheme

Fifty-six terrorists groups all over the world are looking for new sources of funding. One of the ways they can find it is through drug sourcing activities.

Here is how it works. Used cars are shipped from the U.S. to several West African countries. After they are sold at a 15- to 20-percent mark-up, the profit goes to Hezbollah. Some money then gets returned to the United States to buy more cars.

In all, 30 domestic companies are being investigated. The red flag for the deal? A small call dealership in Tulsa. Authorities say Ace Auto in Tulsa received more than $20 million in wire transfers.

A joint terrorism task force is looking for more than $480 million dollars from Lebanese institutions.

No one was arrested in Tulsa, but authorities should reveal more in the coming weeks

Michael Hearns an Anti Money Laundering specialist with over 24 years of AML experience can also be found at http://www.launderingmoney.com/ and on twitter at : http://twitter.com/#!/LaunderingMoney http://moneylaunderingworld.blogspot.com/   and http://launderingmoney.com/

Nigeria tops List of Money Laundering Nations

By Agaju Madugba
Daily Champion

Nigeria is leading seven other West African countries with highest rate of money laundering.

A report by the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA) in 2010 put Nigeria on the top of seven countries of the region which lose an estimated sum of US$73 billion (about N11.6 trillion) annually through laundering of illicit money from the national economies of the affected countries.
"Nigeria is by far the dominant driver of illicit flows from the sub-Saharan region and Nigeria's influence is also behind illicit flows from the group of fuel exporters," pioneer Director of the United Nations African Institute for the Prevention of Crimes (UNAFR), Prof Femi Odekunle, said yesterday.
Odenkule spoke in Zaria at GIABA's annual public lecture on Anti-Money Laundering and Combating the Financing of Terrorism, at the Ahmadu Bello University (ABU).
A breakdown of the figure shows that the countries lose US$43 billion and US$20 billion via tax evasion and corruption respectively and US$2 billion and US$612 million via drug trafficking and private sector fraud respectively while another sum off US$280 million is lost through human trafficking and related crimes.
He said: "The direct impact of money laundering is that it deprives the local economies of urgently-needed funds for development and it drains hard currency reserves, heightens inflation, reduces tax collection, cancels investment and undermines free trade."
He said efforts to reduce poverty and boost economic growth will continue to be thwarted as long as illicit capital continues to flow out of poor African countries.
In his address, GIABA Director-General, Dr. Abdullahi Shehu, said the annual lectures on money laundering and terrorism financing at tertiary institutions across the region were designed to ensure that a large segment of the population is sensitized on the effects of money laundering and terrorism financing.
He said: "The establishment of GIABA is one of the main responses and contributions of ECOWAS in the fight against money laundering and terrorist financing in the sub-region.
"Over the past several years, political upheavals due to resource control or simple greed have left many parts of the region in total chaos, with resources for reconstruction inadequate or unavailable.
"Within the framework of its 2011-2014 Strategic Plans, GIABA accords the promotion of strategic partnerships with stakeholders, including the civil society organizations, the media and development partners".

Michael Hearns an Anti Money Laundering specialist with over 24 years of AML experience can also be found at http://www.launderingmoney.com/ and on twitter at : http://twitter.com/#!/LaunderingMoney