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
  • 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

  • Rescue delayed for icebound ship in Antarctica

    The latest attempt to rescue passengers on board a research ship that has been trapped in Antarctic ice for more than a week was delayed again today after sea ice prevented a barge from reaching one of the rescue vessels.

    January 2, 2014

  • Santa's sleigh delayed after snags at UPS, FedEx

    Santa's sleigh didn't make it in time for Christmas for some this year due to shipping problems at UPS and FedEx.

    December 25, 2013

  • Dueling Dinos_Brem.jpg 'Montana Dueling Dinos' to sell at NYC auction

    "Montana Dueling Dinosaurs" are up for sale at Bonhams auction house on Tuesday for an estimated $7 million to $9 million, a price out of the reach of most museums.

    November 19, 2013 1 Photo

  • Police: Spy in bag probably died by accident

    A spy whose naked, decomposing body was found inside a padlocked gym bag at his apartment likely died in an accident with no one else involved, British police said Wednesday — a tentative conclusion that is unlikely to calm conspiracy theories around the bizarre case.

    November 13, 2013

  • 2 human rights groups criticize US drone program

    The United States on Tuesday defended drone strikes targeting al-Qaida operatives and others it deems enemies, rejecting reports by two human-rights groups questioning the legality of strikes they asserted have killed or wounded scores of civilians in Yemen and Pakistan.

    October 22, 2013

AP Video
Boston Bombing Survivors One Year Later Sister of Slain MIT Officer Reflects on Bombing Raw: Blast at Tennessee Ammunition Plant Kills 1 Raw: Urinator Causes Portland to Flush Reservoir Hoax Bomb Raises Anxiety in Boston New York Auto Show Highlights Latest in Car Tech Ex-California City Leader Gets 12 Year Sentence Obama, Biden Announce $600M for Job Grants Miley Cyrus Still in Hospital, Cancels 2nd Show New York Auto Show Highlights Latest in Car Tech Disbanding Muslim Surveillance Draws Praise Passengers Abuzz After Plane Hits Swarm of Bees Boston Bomb Scare Defendant Appears in Court Boston Officials: No Bags at Marathon Town, Victims Remember Texas Blast Freeze Leaves Florida Panhandle With Dead Trees At Boston Marathon, a Chance to Finally Finish Are School Dress Codes Too Strict? Suspicious Bags Found Near Marathon Finish Line Boston Marks the 1st Anniversary of Bombing
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.