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Georgia Man Pleads Guilty To Operating Unlicensed Money Transmitting Business

2015-10-13 · Press release

Mentions 1960 Verified 1960

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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