'Burb Bank Caught in Conspiracy
Money laundering ring operated out of Palos Hills
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Palos Hills, center of an international money laundering ring.
To off-shore or not to off-shore? Not to off-shore.
Look no further than Palos Hills, Illinois.
The Family Bank and Trust at 10360 S Roberts Rd will plead guilty to one count of conspiracy and will forfeit $800,000 to the federal government, according to federal charges made public Monday.
It turns out the bank was part of a money-laundering scheme connected to an international pseudoephedrine trafficking operation. Thousands of dollars a day would be deposited or withdrawn from the bank without being properly filed, feds say.
It is the first time a bank has ever been prosecuted in the nation for failing to file such a report, a spokesman for the U.S. attorney's office in Chicago told ChicagoBusiness.com.
Keeping your money under the mattress is sounding like a better option already.
Normally, a bank requires its customers to fill out special reports for transactions over $10,000. These forms help the government keep an eye on any potential criminal activity.
However, Family Bank and president Marvin Siensa -- who died in 2008 -- allegedly took large cash deposits and withdrawals to the tune of $800,000, all with no federal reports.
According to court records, the cash deposits would be broken up into various accounts in order to disguise the illegal earnings.
A news release said that no customer deposits were affected, and the new ownership and management of the bank are not connected to the charges.
Matt Bartosik, a "between blogs" blogger, says you can take it to the bank.
Copyright NBC Owned Television Stations / NBC Chicago
Posted Tuesday, Oct 27, 2009 - 6:15 AM CST
