A Las Vegas man was convicted on multiple fraud and money laundering charges in a New York federal court this week. 51-year-old Martin Mizrahi was found guilty by a jury of seven offenses, including wire fraud, bank fraud, money laundering, aggravated identity theft, and operating an unlicensed money transmission business.
Prosecutors claim that Mizrahi brazenly used his company as a front to launder millions of dollars from illegal drug sales and fraudulent schemes. Starting in early 2021, he allegedly began accepting cash proceeds from a Mexican drug cartel, converting the money to bitcoin, and sending it to anonymous cryptocurrency wallets controlled by co-conspirators.
In addition to laundering drug money, Mizrahi is accused of laundering over $3 million obtained through an email scheme targeting a New York City nonprofit organization. The funds were wired to his company before being converted to cryptocurrency.
Mizrahi also perpetrated a major credit card fraud scheme from April to June 2021, running nearly $8 million in fraudulent charges through his business. He prepared fake invoices to justify the illegitimate charges, which were made on credit cards issued to third parties, some of which had been stolen.
In total, prosecutors say Mizrahi laundered over $4 million in illicit drug and fraud proceeds in just five months. US Attorney Damian Williams said the jury’s verdict “sends a resounding message that individuals who steal and introduce illicit funds into the US financial system will be held accountable.”
Mizrahi now faces potential sentences of 20 to 30 years in prison for fraud and money laundering convictions. The identity theft charge also carries a mandatory consecutive two-year sentence. He could receive up to five additional years for the unlicensed money transmission conviction.
Information for this story was found via the Las Vegas Review-Journal, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
