Union Township Man Charged With Running $400 Million Unlicensed Check Cashing Operation
2019-07-22 · Press release
NEWARK, N.J. – A Union Township, New Jersey, resident with businesses in Newark will appear in court today on charges that he operated a massive unlicensed check cashing operation that cashed over $400 million in checks, U.S. Attorney Craig Carpenito announced.
Fernando Q. Martins, 40, of Union, is charged by complaint with one count of operating an unlicensed money transmitting business. He was arrested on Friday, July 19, 2019, and had an initial appearance before U.S. Magistrate Judge Michael A. Hammer in Newark federal court. Martins is expected to appear before Judge Hammer at 12:30 p.m. today for a bail hearing.
According to documents filed in this case and statements made in court:
Since at least 2015, Martins, despite holding no license, operated a scheme in which he cashed checks, mostly from customers in the construction and building trades, for a fee. In total, Martins and those working for him cashed over $400 million in checks. In addition to cashing checks for his customers, Martins also facilitated the scheme by allowing customers to write checks to businesses he controlled. In exchange for their fees, Martins’ customers could avoid the cash being reported on Currency Transaction Reports. This facilitated the customers’ ability to pay off-the-books employees and laborers in cash and avoid payroll and income taxes.
The charge of operating an unlicensed money transmitting business carries a maximum potential penalty of 5 years in prison and a fine of the greater of (1) twice the gross financial gain derived from the offense, (2) twice the loss caused by the offense, or (3) $250,000.
U.S. Attorney Carpenito credited agents of the Internal Revenue Service, Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, and U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark with the investigation leading to the charge against Martins.
The government is represented by Assistant U.S. Attorney David E. Malagold of the U.S. Attorney’s Office Criminal Division.
Defense counsel: Chester Keller, Esq.
- district_office
- usa_name
- event_type
- judge_name
- judge_title
- case_number
- max_penalty_text
- sentence_summary
- money_amounts
- crypto_assets
- statutes_json
- timeline_json
- press_release_url
- https://www.justice.gov/usao-nj/pr/union-township-man-charged-running-400-million-unlicensed-check-cashing-operation
- extras_json
| participant_id | name | role | title | organization | location | age | nationality | status |
|---|---|---|---|---|---|---|---|---|
| 2208 | Fernando Q. Martins | defendant | Union Township, New Jersey | 40 | indicted | |||
| 2209 | Craig Carpenito | prosecutor | U.S. Attorney | U.S. Attorney's Office | New Jersey | |||
| 2210 | Michael A. Hammer | judge | U.S. Magistrate Judge | U.S. District Court | Newark, New Jersey | |||
| 2211 | David E. Malagold | prosecutor | Assistant U.S. Attorney | U.S. Attorney’s Office Criminal Division | New Jersey | |||
| 2212 | Chester Keller | defense attorney | Attorney | |||||
| 2213 | John R. Tafur | investigator | Special Agent in Charge | Internal Revenue Service, Criminal Investigation | Newark, New Jersey | |||
| 2214 | Brian Michael | investigator | Special Agent in Charge | U.S. Immigration and Customs Enforcement, Homeland Security Investigations | Newark, New Jersey |
| agency_id | agency_name | abbreviation | role | office_location | agents_mentioned | contribution |
|---|---|---|---|---|---|---|
| 1358 | Internal Revenue Service, Criminal Investigation | IRS CI | investigation | Newark | John R. Tafur | investigation leading to the charge against Martins |
| 1359 | U.S. Immigration and Customs Enforcement, Homeland Security Investigations | HSI | investigation | Newark | Brian Michael | investigation leading to the charge against Martins |
| 1360 | U.S. Attorney’s Office | USAO | prosecution | Newark | David E. Malagold | representing the government in the case |
| charge_id | charge_description | statute | severity | max_penalty | fine_amount | defendant | status | participant_id | cl_docket_id | count_num | is_1960 | verified_1960 | source | updated_at |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1147 | operating an unlicensed money transmitting business | felony | 5 years in prison | $250,000 | Fernando Q. Martins | charged | 1 | enrichment | 2026-09-16T19:45:58+00:00 | |||||
| 3048 | operating an unlicensed money transmitting business | 1 | press | 2026-09-16T19:45:58+00:00 | ||||||||||
| 3049 | operating an unlicensed money transmitting business carries a maximum potential penalty of 5 years in prison and a fine of the grea | 1 | press | 2026-09-16T19:45:58+00:00 | ||||||||||
| 3050 | operating an unlicensed money transmitting business carries a maximum potential penalty of 5 years in prison and a fine of | 1 | press | 2026-09-16T19:45:58+00:00 | ||||||||||
| 3051 | unlicensed money transmitting business | 1 | press | 2026-09-16T19:45:58+00:00 | ||||||||||
| 3052 | unlicensed money transmitting business carries a maximum potential penalty of | 1 | press | 2026-09-16T19:45:58+00:00 |
| fin_id | action_type | amount | currency | description | asset_type | defendant | status |
|---|---|---|---|---|---|---|---|
| 718 | fine | $250,000 | USD | Maximum potential fine for operating an unlicensed money transmitting business | cash | Fernando Q. Martins | potential |
| victim_id | victim_type | description | number_affected | loss_amount | geographic_scope | vulnerability_factors | impact_description |
|---|---|---|---|---|---|---|---|
| 315 | government | U.S. government due to facilitated tax evasion | New Jersey | Lost tax revenue from customers avoiding payroll and income taxes through unreported cash transactions |
| quote_id | quote_text | speaker_name | speaker_title | speaker_organization | quote_type | context | significance |
|---|---|---|---|---|---|---|---|
| 1932 | Since at least 2015, Martins, despite holding no license, operated a scheme in which he cashed checks, mostly from customers in the construction and building trades, for a fee. | statement | Description of the alleged scheme | Details the nature of the unlicensed check cashing operation | |||
| 1933 | In total, Martins and those working for him cashed over $400 million in checks. | statement | Description of the alleged scheme | Specifies the scale of the operation | |||
| 1934 | In addition to cashing checks for his customers, Martins also facilitated the scheme by allowing customers to write checks to businesses he controlled. | statement | Description of the alleged scheme | Details the methods used to facilitate the operation | |||
| 1935 | In exchange for their fees, Martins’ customers could avoid the cash being reported on Currency Transaction Reports. | statement | Description of the alleged scheme | Explains the benefit to customers | |||
| 1936 | This facilitated the customers’ ability to pay off-the-books employees and laborers in cash and avoid payroll and income taxes. | statement | Description of the alleged scheme | Details the tax evasion aspect of the operation | |||
| 1937 | The charge of operating an unlicensed money transmitting business carries a maximum potential penalty of 5 years in prison and a fine of the greater of (1) twice the gross financial gain derived from the offense, (2) twice the loss caused by the offense, or (3) $250,000. | statement | Legal consequences | Outlines the potential penalties for the charge | |||
| 1938 | U.S. Attorney Carpenito credited agents of the Internal Revenue Service, Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, and U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark with the investigation leading to the charge against Martins. | statement | Acknowledgment of investigative agencies | Recognizes the agencies involved in the investigation |
| theme_id | theme_name | description | significance | related_statutes | geographic_scope | temporal_aspects | stakeholders |
|---|---|---|---|---|---|---|---|
| 1496 | Unlicensed Money Transmitting Business | Operated since at least 2015 without a license, cashed over $400 million in checks for customers, allowing them to avoid reporting on Currency Transaction Reports. | Central to the charges, enabling customers to evade taxes and make off-the-books payments. | 18 U.S.C. § 1960 | National | Historical trend | Law enforcement, Financial institutions, Customers |
| 1497 | Tax Evasion | Customers avoided payroll and income taxes by using Martins' unreported cash transactions. | Key outcome of the scheme, undermining tax compliance. | National | Historical trend | Customers, Government | |
| 1498 | Currency Transaction Reporting Violations | Customers' cash transactions were not reported on Currency Transaction Reports through Martins' services. | Enabled tax evasion and off-the-books payments. | National | Historical trend | Financial institutions, Customers, Law enforcement |
CourtListener / RECAP
No linked CourtListener docket yet.