Edmonds Man who Operated Illegal Money Transmitting Business Sentenced to Two Years in Prison
2014-10-06 · Press release
A 55-year-old Edmonds, Washington man who moved more than $150 million from overseas sources, through his U.S. bank accounts, and then back overseas, was sentenced today in U.S. District Court in Seattle to two years in prison, announced Acting U.S. Attorney Annette L. Hayes. PAVEL ROMBAKH, who immigrated to the U.S. from Ukraine in the 1990’s, pleaded guilty to operating an unlicensed money transmitting business in May 2014. As part of his plea, he forfeited to the government cash and property worth $510,000. At sentencing, U.S. District Court Judge James L. Robart stated, “He moved a staggering $150 million…. The money came out of Russia and Cyprus, into the U.S. and was wired out to Latvia, the United Arab Emirates and China. That makes this a serious offense.”
According to records filed in the case, over a five year period, ROMBAKH received wires of more than $150 million from overseas and then wired the funds back out to other accounts. Many of the wires originated in Russia and Cyprus and were promptly re-wired to England, Latvia, the United Arab Emirates, and China. ROMBAKH kept a small percentage of the funds as his fee. Investigators were not able to determine the source of the funds, nor what they were used for overseas. Defense attorneys claimed some of the money went to a mining company in Mongolia, but no evidence corroborating this claim was found in the investigation.
“IRS Criminal Investigation is committed to ensuring the integrity of our nation's banking system,” stated Special Agent in Charge Teri Alexander. “Financial Institutions are regulated by federal law. Rombakh attempted to circumvent that law by acting like a bank but without the necessary oversight that protects our overall financial system.”
The case was investigated by IRS-CI and was prosecuted by Assistant United States Attorneys Thomas Woods and Francis Franze-Nakamura.- district_office
- Western District of Washington
- usa_name
- Annette L. Hayes
- event_type
- sentencing
- judge_name
- James L. Robart
- judge_title
- U.S. District Judge
- case_number
- max_penalty_text
- sentence_summary
- two years in prison
- money_amounts
- $150 million, $510,000
- crypto_assets
- statutes_json
- timeline_json
- press_release_url
- https://www.justice.gov/usao-wdwa/pr/edmonds-man-who-operated-illegal-money-transmitting-business-sentenced-two-years-prison
- extras_json
| participant_id | name | role | title | organization | location | age | nationality | status |
|---|---|---|---|---|---|---|---|---|
| 2920 | PAVEL ROMBAKH | defendant | Edmonds, Washington | 55 | Ukrainian | sentenced | ||
| 2921 | Annette L. Hayes | prosecutor | Acting U.S. Attorney | U.S. Attorney's Office | Seattle, Washington | |||
| 2922 | James L. Robart | judge | U.S. District Court Judge | U.S. District Court | Seattle | |||
| 2923 | Thomas Woods | prosecutor | Assistant United States Attorney | U.S. Attorney's Office | Seattle, Washington | |||
| 2924 | Francis Franze-Nakamura | prosecutor | Assistant United States Attorney | U.S. Attorney's Office | Seattle, Washington | |||
| 2925 | Teri Alexander | investigator | Special Agent in Charge | IRS Criminal Investigation |
| agency_id | agency_name | abbreviation | role | office_location | agents_mentioned | contribution |
|---|---|---|---|---|---|---|
| 1912 | United States Attorney's Office | prosecution | Seattle | Thomas Woods, Francis Franze-Nakamura | Prosecuted the case and handled sentencing proceedings | |
| 1913 | Internal Revenue Service Criminal Investigation | IRS-CI | investigation | Teri Alexander | Investigated the illegal money transmitting operations and ensured banking system integrity |
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1513 | operating an unlicensed money transmitting business | PAVEL ROMBAKH | pleaded guilty | 1 | enrichment | 2026-09-16T19:46:00+00:00 | ||||||||
| 3502 | operating an unlicensed money transmitting business in May 2014 | 1 | press | 2026-09-16T19:46:00+00:00 | ||||||||||
| 3503 | unlicensed money transmitting business in May 2014 | 1 | press | 2026-09-16T19:46:00+00:00 |
| fin_id | action_type | amount | currency | description | asset_type | defendant | status |
|---|---|---|---|---|---|---|---|
| 1625 | forfeiture | $510,000 | USD | cash and property | cash and property | PAVEL ROMBAKH | completed |
| victim_id | victim_type | description | number_affected | loss_amount | geographic_scope | vulnerability_factors | impact_description |
|---|---|---|---|---|---|---|---|
| 881 | financial institution | U.S. banking system | United States | Attempted circumvention of federal law by acting like a bank without necessary oversight |
| quote_id | quote_text | speaker_name | speaker_title | speaker_organization | quote_type | context | significance |
|---|---|---|---|---|---|---|---|
| 3218 | He moved a staggering $150 million…. The money came out of Russia and Cyprus, into the U.S. and was wired out to Latvia, the United Arab Emirates and China. That makes this a serious offense. | James L. Robart | U.S. District Court Judge | U.S. District Court | statement | During sentencing | Emphasizes the severity of the offense and the scale of the money laundering operation |
| 3219 | IRS Criminal Investigation is committed to ensuring the integrity of our nation's banking system. Financial Institutions are regulated by federal law. Rombakh attempted to circumvent that law by acting like a bank but without the necessary oversight that protects our overall financial system. | Teri Alexander | Special Agent in Charge | IRS Criminal Investigation | statement | Press release statement | Highlights the importance of regulatory compliance and the role of IRS-CI in maintaining financial integrity |
| theme_id | theme_name | description | significance | related_statutes | geographic_scope | temporal_aspects | stakeholders |
|---|---|---|---|---|---|---|---|
| 2142 | Unlicensed Money Transmitting Business | Operating an unlicensed money transmitting business, moving over $150 million through U.S. bank accounts internationally. | Violated federal law, undermining financial oversight and enabling illicit financial activities. | 18 U.S.C. § 1960 | International | Historical trend | Law enforcement, Financial institutions, Defendant |
| 2143 | Asset Forfeiture | Forfeited $510,000 in cash and property as part of the plea agreement. | Recovery of proceeds from illegal activities to prevent unjust enrichment. | National | Government, Defendant | ||
| 2144 | Transnational Financial Transactions | Funds moved from Russia and Cyprus into the U.S., then re-wired to Latvia, UAE, China, and England. | Demonstrates the international scope of the scheme, complicating enforcement and requiring cross-border cooperation. | International | Historical trend | Law enforcement, International financial institutions, Defendant | |
| 2145 | Financial System Integrity | The IRS emphasized the importance of maintaining the integrity of the U.S. banking system through compliance with federal regulations. | Highlights the necessity of regulatory oversight to prevent illegal financial activities. | National | IRS-CI, Financial institutions, Regulators |
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