Georgia Man Pleads Guilty To Operating Unlicensed Money Transmitting Business
2015-10-13 · Press release
WASHINGTON – A Columbus, Georgia, resident pleaded guilty to one count of operating an unlicensed money transmitting business, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia announced today.
According to court documents, between February 2013 and March 2014, Sawan Shah, aka Sunny, 43, owned, operated and managed several money transmitting companies in the Columbus area. Shah offered check-cashing services to the public, including cashing checks that exceeded $1,000. Shah knew that he and his companies were required to be registered with Financial Crimes Enforcement Network (FinCEN) and with the state of Georgia. Neither Shah nor any of the businesses he controlled were registered with FinCEN or the state of Georgia as a money transmitting business or as a check cashier.
Several individuals approached Shah about cashing tax refund checks that were issued in the names of other individuals. Shah agreed to do so and did not require proof of identification for the individuals listed on the checks. Shah charged fees between 10 and 30 percent of the check’s worth, due to his knowledge that the checks were involved in tax fraud. In 2013 and 2014, Shah cashed approximately 567 federal tax refund checks that totaled $1,357,476.18. Those refund checks were the result of fraudulent claims for refund submitted in the names of stolen identities.
A sentencing hearing has been scheduled for Jan. 26, 2016. Shah faces a statutory maximum sentence of five years in prison. Shah agreed to a forfeiture order in the amount of $1,357,476.18.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Moore commended special agents of Internal Revenue Service-Criminal Investigation and the U.S. Secret Service, who investigated the case, and Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts against stolen identity tax refund fraud may be found on the division’s website.
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- https://www.justice.gov/usao-mdga/pr/georgia-man-pleads-guilty-operating-unlicensed-money-transmitting-business
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| participant_id | name | role | title | organization | location | age | nationality | status |
|---|---|---|---|---|---|---|---|---|
| 2640 | Caroline D. Ciraolo | prosecutor | Acting Assistant Attorney General | Justice Department’s Tax Division | ||||
| 2641 | Michael J. Moore | prosecutor | U.S. Attorney | U.S. Attorney's Office for the Middle District of Georgia | Georgia | |||
| 2642 | Sawan Shah | defendant | Columbus, Georgia | 43 | pleaded guilty | |||
| 2643 | Michael C. Boteler | prosecutor | Trial Attorney | Tax Division | ||||
| 2644 | Crawford L. Seals | prosecutor | Assistant U.S. Attorney | U.S. Attorney's Office for the Middle District of Georgia | Georgia |
| agency_id | agency_name | abbreviation | role | office_location | agents_mentioned | contribution |
|---|---|---|---|---|---|---|
| 1694 | Internal Revenue Service-Criminal Investigation | IRS-CI | investigation | investigated the case | ||
| 1695 | U.S. Secret Service | USSS | investigation | investigated the case | ||
| 1696 | Justice Department’s Tax Division | prosecution | Michael C. Boteler | prosecuting the case | ||
| 1697 | U.S. Attorney's Office for the Middle District of Georgia | prosecution | Middle District of Georgia | Crawford L. Seals | 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1380 | Operating an unlicensed money transmitting business | five years in prison | Sawan Shah | pleaded guilty | 1 | enrichment | 2026-09-16T19:46:00+00:00 | |||||||
| 3443 | operating an unlicensed money transmitting business, Acting Assistant Attorney General Caroline D | 1 | press | 2026-09-16T19:46:00+00:00 | ||||||||||
| 3444 | unlicensed money transmitting business, Acting Assistant Attorney General Caro | 1 | press | 2026-09-16T19:46:00+00:00 |
| fin_id | action_type | amount | currency | description | asset_type | defendant | status |
|---|---|---|---|---|---|---|---|
| 1348 | forfeiture | $1,357,476.18 | USD | Forfeiture of funds obtained through fraudulent tax refund checks | cash | Sawan Shah | ordered |
| victim_id | victim_type | description | number_affected | loss_amount | geographic_scope | vulnerability_factors | impact_description |
|---|---|---|---|---|---|---|---|
| 679 | individual | taxpayers | $1,357,476.18 | United States | stolen identities | fraudulent tax refund claims |
| quote_id | quote_text | speaker_name | speaker_title | speaker_organization | quote_type | context | significance |
|---|---|---|---|---|---|---|---|
| 2892 | Shah agreed to do so and did not require proof of identification for the individuals listed on the checks. | Sawan Shah | statement | Cashing tax refund checks without proper identification | Indicates Shah's involvement in facilitating fraudulent activities | ||
| 2893 | Shah charged fees between 10 and 30 percent of the check’s worth, due to his knowledge that the checks were involved in tax fraud. | Sawan Shah | statement | Charging high fees for cashing fraudulent checks | Shows Shah's awareness and complicity in tax fraud |
| theme_id | theme_name | description | significance | related_statutes | geographic_scope | temporal_aspects | stakeholders |
|---|---|---|---|---|---|---|---|
| 1918 | Operating Unlicensed Money Transmitting Business | Sawan Shah operated multiple unlicensed money transmitting businesses in Columbus, Georgia, without registering with FinCEN or the state. | Central to the guilty plea, violating federal and state licensing requirements designed to prevent financial crimes. | 18 U.S.C. § 1960 | Local | Historical trend (2013-2014) | Law enforcement, Financial institutions, Victims |
| 1919 | Tax Fraud | Shah cashed fraudulent tax refund checks obtained through stolen identities, profiting from fees on illicit proceeds. | Undermined tax system integrity and victimized identity theft victims. | 26 U.S.C. § 7206, 18 U.S.C. § 287 | National | Historical trend (2013-2014) | IRS, Taxpayers, Victims of identity theft |
| 1920 | Identity Theft | Tax refund checks were fraudulently issued using stolen identities to obtain illicit cash. | Enabled the tax fraud scheme and victimized individuals whose identities were compromised. | 18 U.S.C. § 1028 | National | Historical trend (2013-2014) | Victims, Law enforcement |
| 1921 | FinCEN Non-Compliance | Shah knowingly operated without required FinCEN registration for money transmitting services. | Violated anti-money laundering regulations meant to track illicit financial activity. | 31 U.S.C. § 5318 | National | Historical trend (2013-2014) | FinCEN, State regulators |
| 1922 | Sentencing and Forfeiture | Shah faces up to five years imprisonment and $1.35M forfeiture for criminal proceeds. | Enforces legal consequences for financial crimes and seeks asset recovery. | 18 U.S.C. § 981, 18 U.S.C. § 3551 | Local | Recent development (2016 sentencing) | U.S. Attorney's Office, Courts |
| 1923 | Law Enforcement Collaboration | IRS-Criminal Investigation and U.S. Secret Service jointly investigated the case. | Demonstrates interagency cooperation in combating financial crimes. | National | IRS, U.S. Secret Service |
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