Two Arrested For Structuring More Than $100,000 In Financial Transactions Inal Guilty Pleas Entered In Tax Fraud Scheme
CORPUS CHRISTI, Texas – Kimberly Davis, 27, and Justin Colmenero, 30, both of Corpus Christi, have been indicted as a result of the efforts of a multi-agency investigation into structuring financial transactions, United States Attorney Kenneth Magidson announced today.
The sealed indictment was returned Wednesday, May 22, 2013, and unsealed this morning upon their arrests. They are expected to make an initial appearance before U.S. Magistrate Judge B. Janice Elllington tomorrow afternoon.
Agents also executed federal search warrants at three local businesses and the residences of Davis and Colmenero.
The indictment alleges the defendants structured more than $100,000 in cash deposit transactions over a 12-month period with a domestic financial institution in order to avoid the legal reporting requirements of the bank.
The Bank Secrecy Act of 1970 (BSA) requires financial institutions to file reports with the Treasury Department of cash transactions exceeding $10,000.
“Structuring financial transactions to avoid currency reporting requirements is a serious criminal violation of federal law under the BSA," said Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Lucy Cruz. “We will vigorously investigate alongside our law enforcement partners to identify those allegedly involved in such schemes and suspected of committing this form of money laundering.”
The defendants face up to 10 years imprisonment and a fine up to $500,000, if convicted.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by IRS-CI, Drug Enforcement Administration and the Corpus Christi Police Department. The case is being prosecuted by Assistant United States Attorneys Hugo R. Martinez and Lance A. Watt.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.