10-05-2005 -- Monaghan, Brian F. and Cantalupo, Robert -- Criminal Complaint -- News Release

Owner and Sales Manager of South Toms River Custom Motorcycle Shop Charged with Money Laundering

NEWARK - The owner and sales manager at a custom motorcycle shop in South Toms River were arrested this morning, charged in a criminal complaint with laundering money through the sale of a high-end custom motorcycle to undercover IRS agents who the suspects believed were marijuana traffickers, U.S. Attorney Christopher J. Christie announced.

Brian F. Monaghan, 43, the owner of American Built Motorcycles, and sales manager Robert Cantalupo, 29, were arrested at the business on Flint Road by Special Agents of the IRS Criminal Investigations Division. Monaghan, who lives in Berkeley Township, and Cantalupo, of Toms River, were expected to make initial appearances today before U.S. Magistrate Judge Madeline Cox Arleo at about 3:30 p.m.

In April and May, an undercover IRS agent, joined subsequently by a second agent, went to the shop to inquire about the purchase of a custom motorcycle and told both Monaghan and Cantalupo that the cash they intended to use was from the sale of marijuana, according to the criminal complaint. Ultimately, the undercover agents paid $43,615 in cash for a custom-built motorcycle from Monaghan's shop.

In recorded conversations with Monaghan and Cantalupo, the undercover agents told them they did not want the funds to be traceable to them since the money was obtained through illegal means. Monaghan and Cantalupo said they understood and then allegedly offered a method to obscure the source of the cash - by structuring small deposits into the bike shop's bank account - and to hide the identity of the buyer of the motorcycle - by using a third-party's identity on purchase and registration documents.

Of the method of using cash structuring, Cantalupo allegedly said that they "do it all the time," and "I just did it on Saturday."

Cash structuring is illegal and often goes hand-in-hand with money laundering and other criminal activity. Financial institutions are required by law to report cash transactions of more than $10,000. Deposits of less than $10,000 do not trigger that reporting requirement by a financial institution.

We "know how to handle cash," Cantalupo allegedly said in a recorded meeting on May 19. According to the criminal complaint, Cantalupo went on to say: "Just don't bring me all twenties. I had a guy bring me $30,000 in twenties. It took me an hour and a half to count it."

One of the undercover agents told Monaghan that the money for the motorcycle purchase was from marijuana trafficking, and that he had never held a "legitimate job." To that, Monaghan allegedly said: "Hey, good for you. You're lucky you never got caught."

On July 15, the undercover agents gave Cantalupo $43,615 in cash for the motorcycle. Bank records a few days after the purchase revealed that American Built Motorcycles structured cash deposits into its bank account of $7,000 on July 18; $7,500 on July 20; $9,000 on July 21; $9,900 on July 22, and $9,900 on July 25, for a total cash deposit of $43,300 over eight days.

Bank records revealed numerous other structured cash deposits. Between April 2003 and July 29, 2005, according to the criminal complaint, American Built Motorcycles made structured cash deposits under $10,000 totaling approximately $1.13 million.

Since the undercover agents had explained they were drug dealers and did not want the bike to be traceable to them, Monaghan and Cantalupo instructed them to supply a driver's license and corresponding Social Security number of another person to complete the paperwork for the sale.

At the time of the sale, Cantalupo gave one of the undercover agents a sales receipt reflecting the false purchaser information and showing that the buyer had come to the shop five separate times with increments of less than $10,000 to pay off the motorcycle.

The money laundering charge carries a maximum penalty of 20 years in prison and a $500,000 fine.

A criminal complaint is merely an accusation. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. The case will next be presented to a grand jury for possible indictment.

U.S. Attorney Christie credited Special Agent of the IRS Criminal Investigations Section, under the direction of Special Agent in Charge Patricia J. Haynes in Springfield, with developing the case leading to the charges.

The case is being prosecuted by Assistant U.S. Attorney Margaret Ann Mahoney.

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