South San Francisco Resident Pleads Guilty To Money Transmission And Tax Scheme
2018-03-23 · Press release
SAN FRANCISCO – Subhash Jay pleaded guilty today to operating an unlicensed money transmitting business and filing a false tax return announced Acting United States Attorney Alex G. Tse and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Michael T. Batdorf. The plea was accepted by the Honorable Charles R. Breyer, United States District Judge, in San Francisco.
According to the plea agreement, Jay, 59, of South San Francisco admitted to operating a money transmitting business known as Force Services, Inc., without obtaining required state or federal licenses. Jay admitted that, during 2010 through 2014, he caused two domestic bank accounts held in the name of Force Services to receive international wire transfers on behalf of a client. The wire transfers had an aggregate value of at least $4,515,236. Jay forwarded most of those funds to the client, but retained $817,734 as commissions. Jay willfully filed corporate tax returns for Force Services for the years 2010 through 2014, which failed to report the commissions as gross receipts. Jay also willfully filed individual income tax returns for the years 2010 through 2014, which failed to report the commissions as income.
A federal grand jury indicted Jay on April 6, 2017, charging him with one count of operating an unlicensed money transmitting business, in violation of 18 U.S.C. § 1960; ten counts of filing false tax returns, in violation of 26 U.S.C. § 7206(1); one count of making false statements to a government agency, in violation of 18 U.S.C. § 1001(a)(2); and one count of structuring financial transactions to evade reporting requirements, in violation of 31 U.S.C. § 5324(a)(3). Today Jay pleaded guilty to one count of operating an unlicensed money transmitting business, and one count of filing false tax returns. Judge Breyer scheduled Jay’s sentencing hearing for July 18, 2018. Jay faces a maximum sentence of five years in prison and a fine of $250,000 for operating an unlicensed money transmitting business, and three years in prison and a fine of $250,000 for filing false tax returns. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorney Michael G. Pitman is prosecuting the case. The prosecution is the result of an investigation by the IRS-CI.
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- https://www.justice.gov/usao-ndca/pr/south-san-francisco-resident-pleads-guilty-money-transmission-and-tax-scheme
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| participant_id | name | role | title | organization | location | age | nationality | status |
|---|---|---|---|---|---|---|---|---|
| 2365 | Subhash Jay | defendant | Force Services, Inc. | South San Francisco | 59 | pleaded guilty | ||
| 2366 | Alex G. Tse | prosecutor | Acting United States Attorney | U.S. Attorney's Office | San Francisco | |||
| 2367 | Michael T. Batdorf | investigator | Special Agent in Charge | IRS-CI | San Francisco | |||
| 2368 | Charles R. Breyer | judge | United States District Judge | U.S. District Court | San Francisco | |||
| 2369 | Michael G. Pitman | prosecutor | Assistant United States Attorney | U.S. Attorney's Office | San Francisco |
| agency_id | agency_name | abbreviation | role | office_location | agents_mentioned | contribution |
|---|---|---|---|---|---|---|
| 1488 | Internal Revenue Service, Criminal Investigation | IRS-CI | investigation | Michael T. Batdorf | led the investigation | |
| 1489 | United States Attorney's Office | prosecution | Alex G. Tse, Michael G. Pitman | prosecuted 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1242 | filing false tax returns | 26 U.S.C. § 7206(1) | three years in prison | $250,000 | Subhash Jay | pleaded guilty | 0 | enrichment | ||||||
| 1243 | making false statements to a government agency | 18 U.S.C. § 1001(a)(2) | Subhash Jay | indicted | 0 | enrichment | ||||||||
| 1244 | structuring financial transactions to evade reporting requirements | 31 U.S.C. § 5324(a)(3) | Subhash Jay | indicted | 0 | enrichment | ||||||||
| 1241 | operating an unlicensed money transmitting business | 18 U.S.C. § 1960 | five years in prison | $250,000 | Subhash Jay | pleaded guilty | 1 | enrichment | 2026-09-16T19:45:59+00:00 | |||||
| 3295 | operating an unlicensed money transmitting business and filing a false tax return announced Acting United States Attorney Alex G | 1 | press | 2026-09-16T19:45:59+00:00 | ||||||||||
| 3296 | operating an unlicensed money transmitting business, in violation of 18 U | 1 | press | 2026-09-16T19:45:59+00:00 | ||||||||||
| 3297 | operating an unlicensed money transmitting business, and one count of filing false tax returns | 1 | press | 2026-09-16T19:45:59+00:00 | ||||||||||
| 3298 | operating an unlicensed money transmitting business, and three years in prison and a fine of $250,000 for filing false tax returns | 1 | press | 2026-09-16T19:45:59+00:00 | ||||||||||
| 3299 | operating an unlicensed money transmitting business and filing a false tax return announced Acting United States Attorney | 1 | press | 2026-09-16T19:45:59+00:00 | ||||||||||
| 3300 | operating an unlicensed money transmitting business, and three years in prison and a fine of $250,000 for filing false tax | 1 | press | 2026-09-16T19:45:59+00:00 | ||||||||||
| 3301 | unlicensed money transmitting business and filing a false tax return announced | 1 | press | 2026-09-16T19:45:59+00:00 | ||||||||||
| 3302 | unlicensed money transmitting business, in violation of 18 U | 1 | press | 2026-09-16T19:45:59+00:00 | ||||||||||
| 3303 | unlicensed money transmitting business, and one count of filing false tax retu | 1 | press | 2026-09-16T19:45:59+00:00 | ||||||||||
| 3304 | unlicensed money transmitting business, and three years in prison and a fine o | 1 | press | 2026-09-16T19:45:59+00:00 | ||||||||||
| 3305 | 18 U.S.C. § 1960; ten counts of filing false tax returns | 1 | press | 2026-09-16T19:45:59+00:00 | ||||||||||
| 3306 | § 1960; ten counts of filing false tax returns | 1 | press | 2026-09-16T19:45:59+00:00 |
| fin_id | action_type | amount | currency | description | asset_type | defendant | status |
|---|---|---|---|---|---|---|---|
| 1012 | fine | $250,000 | USD | fine for operating an unlicensed money transmitting business | cash | Subhash Jay | pending |
| 1013 | fine | $250,000 | USD | fine for filing false tax returns | cash | Subhash Jay | pending |
| 1014 | seizure | $4,515,236 | USD | international wire transfers | cash | Subhash Jay | null |
| 1015 | seizure | $817,734 | USD | commissions retained | cash | Subhash Jay | null |
| victim_id | victim_type | description | number_affected | loss_amount | geographic_scope | vulnerability_factors | impact_description |
|---|---|---|---|---|---|---|---|
| 346 | government | U.S. Government due to tax evasion | $817,734 | United States | Loss of tax revenue from unreported income |
| quote_id | quote_text | speaker_name | speaker_title | speaker_organization | quote_type | context | significance |
|---|---|---|---|---|---|---|---|
| 2287 | Jay, 59, of South San Francisco admitted to operating a money transmitting business known as Force Services, Inc., without obtaining required state or federal licenses. | Subhash Jay | statement | Plea agreement | Admission of operating an unlicensed money transmitting business | ||
| 2288 | Jay admitted that, during 2010 through 2014, he caused two domestic bank accounts held in the name of Force Services to receive international wire transfers on behalf of a client. | Subhash Jay | statement | Plea agreement | Admission of receiving international wire transfers without proper licensing | ||
| 2289 | Jay forwarded most of those funds to the client, but retained $817,734 as commissions. | Subhash Jay | statement | Plea agreement | Admission of retaining commissions from unlicensed money transmitting activities | ||
| 2290 | Jay willfully filed corporate tax returns for Force Services for the years 2010 through 2014, which failed to report the commissions as gross receipts. | Subhash Jay | statement | Plea agreement | Admission of filing false corporate tax returns | ||
| 2291 | Jay also willfully filed individual income tax returns for the years 2010 through 2014, which failed to report the commissions as income. | Subhash Jay | statement | Plea agreement | Admission of filing false individual tax returns | ||
| 2292 | Jay pleaded guilty to one count of operating an unlicensed money transmitting business, and one count of filing false tax returns. | Subhash Jay | statement | Court proceeding | Plea of guilt to charges of operating an unlicensed money transmitting business and filing false tax returns | ||
| 2293 | Jay faces a maximum sentence of five years in prison and a fine of $250,000 for operating an unlicensed money transmitting business, and three years in prison and a fine of $250,000 for filing false tax returns. | U.S. Department of Justice | statement | Press release | Potential penalties for the crimes admitted |
| theme_id | theme_name | description | significance | related_statutes | geographic_scope | temporal_aspects | stakeholders |
|---|---|---|---|---|---|---|---|
| 1663 | Unlicensed Money Transmission | Operating an unlicensed money transmitting business (Force Services, Inc.) that received international wire transfers totaling at least $4.5 million from 2010 to 2014. | Central to the case as the primary charge leading to the guilty plea. | 18 U.S.C. § 1960 | International | 2010 through 2014 | Subhash Jay, IRS-CI, Financial institutions |
| 1664 | Tax Evasion/Filing False Tax Returns | Willfully failing to report commissions from money transmission as income on corporate and individual tax returns from 2010 to 2014. | Key charge leading to guilty plea, demonstrates intent to evade taxes. | 26 U.S.C. § 7206(1) | National | 2010 through 2014 | Subhash Jay, IRS-CI |
| 1665 | Financial Transaction Structuring | Structuring financial transactions to evade federal reporting requirements. | Part of the scheme to conceal the flow of funds and avoid regulatory oversight. | 31 U.S.C. § 5324(a)(3) | National | 2010 through 2014 | Subhash Jay, Financial institutions, IRS-CI |
| 1666 | False Statements to a Government Agency | Making false statements to a government agency, as part of the indictment. | Indicates obstruction of justice and deceit in dealings with authorities. | 18 U.S.C. § 1001(a)(2) | National | 2010 through 2014 | Subhash Jay, Government agencies (IRS) |
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