SLIDELL, LOUISIANA MAN, RICHARD ZANCO, PLEADS GUILTY TO ILLEGALLY LAUNDERING OVER $343,000
RICHARD ZANCO, age 44, of Slidell, Louisiana, plead guilty as charged today before United States District Judge Susie Morgan to money laundering, announced United States Attorney Kenneth Allen Polite, Jr.
According to court documents, in about May 2012, ZANCO learned that someone had opened a brokerage account in his name and used that account to acquire collateralized mortgage obligations (CMOs), a type of bond that bore value from interest generated upon its sale, by fraudulent means. Even though he knew that the CMOs did not belong to him, ZANCO gained control of the accounts and arranged for the interest proceeds of the CMOs to be diverted to other financial accounts under his control. Between about March 11, 2013, and September 19, 2013, ZANCO used the funds, totaling approximately $343,998.82, to engage in a variety of financial transactions for his personal use, including purchasing multiple automobiles and at least one boat.
ZANCO faces a maximum penalty of ten (10) years, followed by up to three (3) years of supervised release, and a $250,000 fine. Sentencing has been scheduled before Judge Morgan for July 2, 2014.
This case is being investigated by agents from the Federal Bureau of Investigation and the Internal Revenue Service. The prosecution of this case is being handled by Assistant United States Attorneys Jordan Ginsberg and Dan Friel.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims or have knowledge of waste, abuse, or allegations of mismanagement involving disaster relief operations, contact the National Center for Disaster Fraud toll free at: (866) 720-5721. You can also fax information to: (225) 334-4707 or e-mail it to: firstname.lastname@example.org