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Georgia Man Sentenced to Prison for Operating an Unlicensed Money Transmitting Business

2016-01-26 · Press release

Mentions 1960 Verified 1960

Summary: A Columbus, Georgia resident was sentenced to serve 21 months in prison, followed by three years of supervised release and ordered to forfeit $1,357,476.18 for operating an unlicensed money transmitting business, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney G.F. “Pete” Peterman III for the Middle District of Georgia announced today.

A Columbus, Georgia resident was sentenced to serve 21 months in prison, followed by three years of supervised release and ordered to forfeit $1,357,476.18 for operating an unlicensed money transmitting business, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney G.F. “Pete” Peterman III for the Middle District of Georgia announced today.

According to court documents, between February 2013 and March 2014, Sawan Shah aka Sunny, owned, operated and managed several money transmitting companies in the Columbus area.  Shah offered check cashing services to the public, including cashing of 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.

As part of his plea, the defendant admitted that several individuals approached him 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 of between 10 and 30 percent of the value of the check, 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.  Shah admitted in plea documents that those checks were the result of fraudulent claims for income tax refunds submitted in the names of stolen identities. 

Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Peterman III commended special agents of Internal Revenue Service (IRS)-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 prosecuted the case. 

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. 

district_office
Middle District of Georgia
usa_name
G.F. Peterman III
event_type
sentencing
judge_name
judge_title
case_number
max_penalty_text
sentence_summary
21 months in prison, followed by three years of supervised release and ordered to forfeit $1,357,476.18
money_amounts
$1,357,476.18
crypto_assets
statutes_json
timeline_json
press_release_url
https://www.justice.gov/archives/opa/pr/georgia-man-sentenced-prison-operating-unlicensed-money-transmitting-business
extras_json
participant_id name role title organization location age nationality status
2615 Caroline D. Ciraolo Assistant Attorney General Acting Assistant Attorney General Justice Department’s Tax Division
2616 G.F. “Pete” Peterman III U.S. Attorney Acting U.S. Attorney U.S. Attorney's Office for the Middle District of Georgia Georgia
2617 Sawan Shah defendant Columbus, Georgia sentenced
2618 Michael C. Boteler prosecutor Trial Attorney Tax Division
2619 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
1674 Justice Department’s Tax Division Tax Division prosecution Prosecuted the case with trial attorney Michael C. Boteler
1675 U.S. Attorney’s Office for the Middle District of Georgia prosecution Middle District of Georgia Prosecuted the case with assistant U.S. attorney Crawford L. Seals
1676 Internal Revenue Service Criminal Investigation IRS-CI investigation Investigated the case
1677 U.S. Secret Service USSS investigation Investigated 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
1375 Operating an Unlicensed Money Transmitting Business Sawan Shah sentenced 1 enrichment 2026-09-16T19:46:00+00:00
3429 operating an unlicensed money transmitting business, Acting Assistant Attorney General Caroline D 1 press 2026-09-16T19:46:00+00:00
3430 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
1331 forfeiture $1,357,476.18 USD Forfeiture of funds obtained through unlicensed money transmitting business cash Sawan Shah aka Sunny ordered
victim_id victim_type description number_affected loss_amount geographic_scope vulnerability_factors impact_description
413 individual individuals whose identities were stolen to submit fraudulent tax refund claims $1,357,476.18 Unauthorized federal tax refund checks were cashed using stolen identities, resulting in financial loss
quote_id quote_text speaker_name speaker_title speaker_organization quote_type context significance
2879 Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney G.F. “Pete” Peterman III for the Middle District of Georgia announced today. null null null statement Announcement of the sentencing Introduces the case and the individuals involved in the announcement.
2880 Shah offered check cashing services to the public, including cashing of checks that exceeded $1,000. null null null statement Description of Shah's illegal activities Details the nature of the illegal business operations.
2881 Shah knew that he and his companies were required to be registered with Financial Crimes Enforcement Network (FinCEN) and with the State of Georgia. null null null statement Awareness of legal requirements Shows Shah's knowledge of the legal requirements he was violating.
2882 Shah agreed to do so and did not require proof of identification for the individuals listed on the checks. null null null statement Description of Shah's illegal check-cashing practices Highlights the illegal and fraudulent nature of Shah's operations.
2883 Shah charged fees of between 10 and 30 percent of the value of the check, due to his knowledge that the checks were involved in tax fraud. null null null statement Description of Shah's illegal check-cashing practices Shows Shah's awareness and involvement in tax fraud.
2884 Shah admitted in plea documents that those checks were the result of fraudulent claims for income tax refunds submitted in the names of stolen identities. null null null statement Admission of guilt Confirms Shah's involvement in identity theft and tax fraud.
2885 Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Peterman III commended special agents of Internal Revenue Service (IRS)-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 prosecuted the case. null null null statement Acknowledgment of investigative and prosecutorial efforts Recognizes the key individuals and agencies involved in the case.
theme_id theme_name description significance related_statutes geographic_scope temporal_aspects stakeholders
1893 Unlicensed Money Transmitting Business Operating money transmitting businesses without proper registration with FinCEN and the State of Georgia. Violates federal and state licensing requirements, enabling illegal financial activities. 18 U.S.C. § 1960 Local (Columbus, Georgia) 2013-2014 Sawan Shah, FinCEN, Georgia State authorities, Law enforcement
1894 Tax Fraud Cashing fraudulent tax refund checks obtained through stolen identities. Undermines tax system integrity and victimizes identity theft victims. 26 U.S.C. § 7206, 18 U.S.C. § 287 National 2013-2014 IRS, U.S. Secret Service, Taxpayers, Victims of identity theft
1895 Identity Theft Using stolen identities to obtain fraudulent tax refund checks. Enables financial crimes and harms victims' credit and legal standing. 18 U.S.C. § 1028 National 2013-2014 Victims of identity theft, Law enforcement agencies
1896 Law Enforcement Coordination Collaboration between IRS-Criminal Investigation and U.S. Secret Service. Demonstrates multi-agency cooperation in combating financial crimes. National 2013-2014 IRS, U.S. Secret Service, DOJ Tax Division, U.S. Attorney's Office
1897 Asset Forfeiture Ordered forfeiture of $1,357,476.18 linked to illegal activities. Disrupts criminal proceeds and serves as financial deterrent. 18 U.S.C. § 981 National Post-conviction DOJ, Courts, Victims

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