New York Check Cashing Company Pleads Guilty to AML Violations

A New York check cashing company and its owner pleaded guilty Tuesday to violating the reporting and anti-money-laundering requirements of the Bank Secrecy Act.

Belair Payroll Services in Flushing, N.Y., and its owner, Craig Panzera, processed $19 million in shell corporation checks between June 2009 and June 2011, according to charges filed by the United States in the Eastern District Court of New York. Belair and Panzera neglected to obtain identification from the individuals cashing the checks and misidentified them in reports filed with the Department of Treasury. They also failed to accurately record the amount of cash provided to the individuals in some reports.

As part of the guilty plea, Belair will forfeit $3.3 million. Panzera, who also pleaded guilty to failing to pay income and payroll taxes, will pay $947,000 in restitution.

Sentencing will be determined at a later date, according to a Department of Justice press release issued Tuesday.

For reprint and licensing requests for this article, click here.
Consumer banking
MORE FROM AMERICAN BANKER