California man gets maximum sentence for laundering proceeds from email fraud scheme
2025-07-22 · Press release
Summary: A San Fernando, California, man has been ordered to federal prison for operating an illegal money transmitting business
HOUSTON – A San Fernando, California, man has been ordered to federal prison for operating an illegal money transmitting business, announced U.S. Attorney Nicholas J. Ganjei.
Victor Rubio Jr. 28, pleaded guilty Feb. 6.
U.S. District Judge George Hanks has now ordered Rubio to serve the maximum 60 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court considered additional evidence about other frauds Rubio committed while on bond in imposing the sentencing, assessing extra points for obstruction of justice. In handing down the sentence, Judge Hanks noted Rubio had committed obstruction after writing his letter to the judge asking for leniency and apologizing for his first crime.
Rubio admitted that from 2021 to 2022, he operated an unlicensed money transmitting business that received and transmitted funds from a business email compromise (BEC) scheme. Rubio ran the unlicensed money transmitting business by using shell companies that existed only on paper.
As part of the plea, Rubio acknowledged opening and maintaining bank accounts to collect money from at least two victims in a BEC scheme, including a healthcare liability insurance company headquartered in Georgia and a township in New Jersey. Then, for a fee, he transmitted the fraud proceeds to co-conspirators.
In response to fraudulent wire instructions from spoofed email accounts, victims sent interstate wire transfers for payment to Rubio instead of to the true creditors to whom the victims owed money.
More than 45 people in multiple states, including Rubio and seven others in the Southern District of Texas, have been charged in separate business email compromise schemes that affected numerous victims.
Previously released on bond, Rubio was taken into custody where he will remain pending transfer to a Federal Bureau of Prisons facility to be determined in the near future.
The FBI - Bryan Resident Agency and IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
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- https://www.justice.gov/usao-sdtx/pr/california-man-gets-maximum-sentence-laundering-proceeds-email-fraud-scheme
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| participant_id | name | role | title | organization | location | age | nationality | status |
|---|---|---|---|---|---|---|---|---|
| 3757 | Victor Rubio Jr. | defendant | San Fernando, California | 28 | sentenced | |||
| 3758 | Nicholas J. Ganjei | prosecutor | U.S. Attorney | U.S. Attorney's Office | Houston, Texas | |||
| 3759 | George Hanks | judge | U.S. District Judge | U.S. District Court | ||||
| 3760 | Belinda Beek | prosecutor | Assistant U.S. Attorney | U.S. Attorney's Office | Houston, Texas |
| agency_id | agency_name | abbreviation | role | office_location | agents_mentioned | contribution |
|---|---|---|---|---|---|---|
| 2352 | Federal Bureau of Investigation | FBI | investigation | Bryan Resident Agency | conducted the investigation | |
| 2353 | Internal Revenue Service Criminal Investigation | IRS CI | investigation | conducted the investigation | ||
| 2354 | United States Attorney's Office for the Southern District of Texas | USAO SDTX | prosecution | Southern District of Texas | Belinda Beek | prosecuting 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2106 | Operating an Unlicensed Money Transmitting Business | 60 months in federal prison | Victor Rubio Jr. | pleaded guilty | 0 | enrichment |
| fin_id | action_type | amount | currency | description | asset_type | defendant | status |
|---|---|---|---|---|---|---|---|
| 531 | fine | $0 | USD | maximum sentence for operating an illegal money transmitting business | null | Victor Rubio Jr. | ordered |
| victim_id | victim_type | description | number_affected | loss_amount | geographic_scope | vulnerability_factors | impact_description |
|---|---|---|---|---|---|---|---|
| 535 | business | healthcare liability insurance company | 1 | Georgia | Sent funds to Rubio instead of true creditors due to fraudulent wire instructions from spoofed email accounts | ||
| 536 | government | township | 1 | New Jersey | Sent funds to Rubio instead of true creditors due to fraudulent wire instructions from spoofed email accounts |
| quote_id | quote_text | speaker_name | speaker_title | speaker_organization | quote_type | context | significance |
|---|---|---|---|---|---|---|---|
| 420 | A San Fernando, California, man has been ordered to federal prison for operating an illegal money transmitting business | Nicholas J. Ganjei | U.S. Attorney | U.S. Department of Justice | statement | Announcement of sentencing outcome | Official announcement of conviction and sentencing by lead prosecutor |
| 421 | Rubio had committed obstruction after writing his letter to the judge asking for leniency and apologizing for his first crime | George Hanks | U.S. District Judge | U.S. District Court | judicial observation | Sentencing hearing rationale | Explains basis for imposing maximum sentence due to obstruction |
| theme_id | theme_name | description | significance | related_statutes | geographic_scope | temporal_aspects | stakeholders |
|---|---|---|---|---|---|---|---|
| 2790 | Money Laundering | Rubio operated an unlicensed money transmitting business using shell companies to receive and transmit funds from BEC schemes. | Central to the case as the primary criminal activity leading to sentencing. | 18 U.S.C. § 1960 | National | 2021-2022 | Law enforcement, Financial institutions, Victims |
| 2791 | Business Email Compromise (BEC) Schemes | Victims were tricked into sending funds via spoofed emails to Rubio instead of legitimate creditors. | Source of fraudulent proceeds laundered through Rubio's operations. | National | 2021-2022 | Victims (healthcare liability insurance company, township), Co-conspirators | |
| 2792 | Unlicensed Money Transmitting Business | Rubio operated without a license using shell companies and bank accounts to facilitate fraud proceeds. | Violated federal law and formed basis for charges. | 18 U.S.C. § 1960 | National | 2021-2022 | Law enforcement, Financial institutions |
| 2793 | Obstruction of Justice | Rubio obstructed justice by writing a misleading apology letter to the court while committing further fraud. | Led to enhanced sentencing and additional charges. | 18 U.S.C. § 1503 | Local (Federal Court) | During sentencing phase | Court, Rubio |
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