The Herald Bulletin

Morning Update

National News

May 29, 2013

7 charged in $6 billion online money laundering case

NEW YORK — Calling it perhaps the biggest money laundering scheme in U.S. history, federal prosecutors charged seven people Tuesday with running what amounted to an online, underworld bank that handled $6 billion for drug dealers, child pornographers, identity thieves and other criminals around the globe.

The case was aimed at Liberty Reserve, a currency transfer and payment processing company based in Costa Rica that authorities say allowed customers to move money anonymously from one account to another via the Internet with almost no questions asked.

U.S. officials said the enterprise was staggering in scope: Over roughly seven years, Liberty Reserve processed 55 million illicit transactions worldwide for 1 million users, including 200,000 in the U.S.

The network "became the bank of choice for the criminal underworld," U.S. Attorney Preet Bharara said in announcing the unsealing of an indictment against the defendants, including Liberty Revenue founder Arthur Budovsky, an American who renounced his U.S. citizenship after deciding to set up in Costa Rica.

Liberty Reserve allowed users to open accounts using fictitious names, including "Russian Hacker" and "Hacker Account." An undercover investigator was able to register using the name "Joe Bogus" and the address "123 Fake Main Street" in "Completely Made Up City, New York," and then conduct transactions he recorded as "ATM skimming network" and "for the cocaine."

"The coin of the realm was anonymity," Bharara said. "It was the opposite of a know-your-customer policy."

The network charged a 1 percent fee on transactions through middlemen known as exchangers, who converted real currency into virtual funds and then back into cash.

In the indictment, prosecutors called the network "one of the principal means by which cyber criminals around the world distribute, store and launder proceeds of their illegal activity ... including credit card fraud, identity theft, investment fraud, computer hacking, child pornography and narcotics trafficking."

Text Only
National News
  • Governor declares emergency, sets Ferguson curfew

    Missouri Gov. Jay Nixon declared a state of emergency and imposed a curfew Saturday.

    August 16, 2014

  • Teen gunman deemed not a high threat

    A teen who fatally shot another student at his suburban Denver high school last year had been deemed "not a high-level of threat."

    August 16, 2014

  • Wal-Mart's website to personalize shopping

    Wal-Mart, in its latest bid to compete with nemesis Amazon.com, is rebuilding its website to further personalize the online shopping experience of each customer.

    August 4, 2014

  • Oil rises to near $105 on improving growth

    The price of oil rose to near $105 a barrel Tuesday on expectations for rising demand as the global economy strengthens.

    June 10, 2014

  • Doomed ferry's sharp turn, slow evacuation probed

    The investigation into South Korea's ferry disaster focused on the sharp turn it took just before it began listing and on the possibility that a quicker evacuation order by the captain could have saved lives, officials said Friday, as rescuers struggled to find some 270 people still missing and feared dead.

    April 18, 2014

  • Police: GPS helped solve, didn't deter killings

    GPS technology helped police link two convicted sex offenders to the rapes and killings of at least four women in California, but the mother of one victim said Tuesday that the monitoring system should have done more to prevent the crimes in the first place.

    April 15, 2014

  • US stocks rise as investors close out quarter

     Stocks rose broadly in midday trading Monday as the market headed for its fifth straight quarterly gain. Microsoft led the technology sector higher.

    March 31, 2014

  • US stock market heads for a solid weekly gain

     The stock market looked ready to finish off a turbulent week with solid gains Friday. Investors brushed aside concerns about higher interest rates and trouble with Russia. The Standard & Poor's 500 index was on track to close at an all-time high.

    March 21, 2014

  • Big changes ahead for frequent fliers on Delta

    Delta Air Lines is making fundamental changes to its frequent flier program and will reward those who buy its priciest tickets, as opposed to those who fly the most miles.

    February 26, 2014

  • Burglary suspect arrested after leaving wallet

    Authorities say a teenager who burglarized a Dallas police officer's apartment, taking his service weapon and ammunition, was apprehended after he lost his wallet as he fled.

    February 18, 2014

AP Video
Arrests Witnessed in Ferguson Charter Schools Alter Post-Katrina Landscape Texas Gov. Perry: Indictment 'a Political Act' US Officials: Video Shows American's Beheading Heavy Rains Flood Arizona Roads Video Shows Ferguson Cop Months Before Shooting US Trying to Verify Video of American's Killing FBI Director Addresses Ferguson Shooting in Utah Raw: Police at Scene of St. Louis Shooting Police: 2 Calif. Boys Planned School Shooting NOLA Police Chief Retires Amid Violent Crimes Lunch Bus Delivers Meals to Kids Out of School Water Bottles Recalled for Safety Researcher Testing On-Field Concussion Scanners Police, Protesters Clash in Ferguson Raw: Police, Protesters Clash in Ferguson Police Blame Ferguson Violence on 'Criminals' Raw: Rallies Across US Protest Ferguson Shooting Raw: Ferguson Protesters Treated After Tear Gas Raw: Tear Gas Fired in Ferguson
Stocks
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.