Damian Williams, the United States Attorney for the Southern District of New York, announced today that MARTIN MIZRAHI, a/k/a “Marty Mizrahi,” was convicted of wire fraud, bank fraud, money laundering, aggravated identity theft, and other offenses for his participation in multiple schemes to defraud banks and credit card companies of almost $8 million and to launder more than $4 million in fraud and illegal narcotics proceeds.
The verdict followed a 12-day trial before U.S. District Judge J. Paul Oetken.
According to the evidence presented in court during the trial:
From at least in or about February 2021 through at least in or about June 2021, MIZRAHI and his co-defendants participated in multiple schemes to defraud banks and credit card companies and to launder narcotics proceeds in addition to the fraud proceeds received.
Beginning in or about February 2021, MIZRAHI began accepting bulk cash narcotics proceeds, which he laundered for individuals associated with a Mexican-based cartel by converting the money into Bitcoin and then sending it to anonymous cryptocurrency wallets provided to him by co-conspirators.
In addition, MIZRAHI laundered fraud proceeds sent to his company by wire transfer, which he also converted into cryptocurrency before sending it to anonymous cryptocurrency wallets.
Those funds were obtained through, among other things, a business email compromise scheme in which a New York City-based non-profit organization had more than $3 million dollars stolen from it by hackers.
Between February and June 2021, MIZRAHI laundered a total of more than $4 million in fraud and narcotics proceeds.
In addition, between April and June 2021, MIZRAHI participated in a credit card fraud scheme in which he ran nearly $8 million in fraudulent credit card charges through his company.
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