Nigerian National Convicted in Federal Court of Conspiracy to Launder Proceeds of Internet Fraud Schemes
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced that Matthew Czap, age 68, formerly of Newark, Delaware, entered a plea of guilty to a one-count Felony Information charging him with structuring financial transactions to avoid currency reporting requirements. The defendant faces up to 10 years in prison and a $500,000 fine.
The Information alleges that between November 2, 2015 and March 30, 2016, defendant made eighteen separate cash deposits, totaling $163,460, each in an amount of less than $10,000. Defendant made many of the deposits on successive days, in amounts approaching, but under, $10,000. At the time he made these deposits, defendant was aware of the currency transaction reporting regulations that required the financial institution where he made these deposits to file a report with the government, documenting any cash transactions over $10,000. Defendant structured these cash deposits in order to avoid triggering the reporting requirement. In his guilty plea, defendant further admitted to structuring, in total, approximately $1.2 million dollars between 2013 and 2016.
Defendant’s wife was charged in December 2016 with wire fraud, identity theft, money laundering, and tax offenses. That case, United States v. Roberta Czap, 16-cr-96-LPS remains pending.
Acting U.S. Attorney Weiss gave the following comment, “The currency transaction reporting requirements serve to protect the U.S. banking system from those who attempt to launder cash. We are committed to prosecuting those who evade these safeguards in such a deliberate and egregious way.”
"Structuring financial transactions to avoid currency reporting requirements is a criminal violation of federal law under the Bank Secrecy Act,” said IRS Criminal Investigation Acting Special Agent in Charge Gregory Floyd. “Deliberately avoiding BSA requirements is a form of money laundering that will be vigorously investigated by IRS Criminal Investigation."
“Today’s guilty plea announcement is significant and highlights the FBI’s collaboration with our partner agencies as we hold this defendant accountable for structuring financial transactions to avoid currency reporting requirements,” said Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Division. “The FBI and the IRS will continue to use all available tools to detect illegal money laundering and structuring activity.”
This case is the result of an investigation conducted by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney Lesley Wolf.