Two Men Responsible For Running Hawala Scheme Involving More Than $65 Million Sentenced To Three Years In Prison
2025-04-23 · Press release
Summary: Jay Clayton, the United States Attorney for the Southern District of New York, announced that MOHANAD AL-ZUBAIDI and SHAKER SALEH MOHAMMED HAUTER were both sentenced to three years in prison for operating an unlicensed money transmitting business that was responsible for illicitly moving more than $65 million between the United States and countries in the Middle East, including Yemen, Turkey, Iraq, the United Arab Emirates, and Jordan.
Jay Clayton, the United States Attorney for the Southern District of New York, announced that MOHANAD AL-ZUBAIDI and SHAKER SALEH MOHAMMED HAUTER were both sentenced to three years in prison for operating an unlicensed money transmitting business that was responsible for illicitly moving more than $65 million between the United States and countries in the Middle East, including Yemen, Turkey, Iraq, the United Arab Emirates, and Jordan. AL-ZUBAIDI and HAUTER previously pled guilty on January 15, 2025, before U.S. District Judge P. Kevin Castel, who imposed yesterday’s sentence.
U.S. Attorney Jay Clayton said: “Mohanad Al-Zubaidi and Shaker Saleh Mohammed Hauter ran an underground financial network that illegally transferred tens of millions of dollars between the United States and the Middle East. The sentences imposed yesterday send a clear message that those who operate these unlawful financing networks will be held accountable.”
According to the Indictment, plea agreements, and statements made in court:
Between in or about 2018 through at least in or about 2022, AL-ZUBAIDI and HAUTER operated an unlicensed money transfer business that was responsible for illicitly moving more than $65 million between the U.S. and countries in the Middle East. AL-ZUBAIDI and HAUTER facilitated hundreds of illicit money transfers, with each transfer ranging from thousands to hundreds of thousands of dollars. For the illicit transactions they completed, AL-ZUBAIDI and HAUTER typically earned a commission of between one and six percent of the total amount transferred. To facilitate these illicit transfers, AL-ZUBAIDI and HAUTER worked with other members of an international network of money brokers to transfer money through an informal money transmitting system known as “hawala,” which is frequently used by money launderers and other criminals to transfer criminal proceeds abroad.
* * *
In addition to the prison terms, AL-ZUBAIDI, 37, of Piscataway, New Jersey, and HAUTER, 52, of the Bronx, New York, were both sentenced to two years of supervised release and ordered to pay forfeiture of $385,000 and $430,000, respectively.
Mr. Clayton praised the outstanding investigative work of the Internal Revenue Service Criminal Investigation and U.S. Postal Inspection Service. Mr. Clayton also recognized the assistance of U.S. Customs and Border Protection.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Matthew J. King and Amanda C. Weingarten are in charge of the prosecution.
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- https://www.justice.gov/usao-sdny/pr/two-men-responsible-running-hawala-scheme-involving-more-65-million-sentenced-three
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| participant_id | name | role | title | organization | location | age | nationality | status |
|---|---|---|---|---|---|---|---|---|
| 3550 | Jay Clayton | prosecutor | U.S. Attorney | U.S. Attorney's Office | New York | |||
| 3551 | Mohanad Al-Zubaidi | defendant | Piscataway, New Jersey | 37 | sentenced | |||
| 3552 | Shaker Saleh Mohammed Hauter | defendant | Bronx, New York | 52 | sentenced | |||
| 3553 | P. Kevin Castel | judge | U.S. District Judge | U.S. District Court | New York | |||
| 3554 | Matthew J. King | prosecutor | Assistant U.S. Attorney | U.S. Attorney's Office | New York | |||
| 3555 | Amanda C. Weingarten | prosecutor | Assistant U.S. Attorney | U.S. Attorney's Office | New York |
| agency_id | agency_name | abbreviation | role | office_location | agents_mentioned | contribution |
|---|---|---|---|---|---|---|
| 2246 | U.S. Attorney's Office for the Southern District of New York | SDNY | prosecution | Southern District of New York | Matthew J. King, Amanda C. Weingarten | Handled the prosecution and announced the sentences |
| 2247 | Internal Revenue Service Criminal Investigation | IRS CI | investigation | Conducted investigative work on the case | ||
| 2248 | U.S. Postal Inspection Service | USPIS | investigation | Conducted investigative work on the case | ||
| 2249 | U.S. Customs and Border Protection | CBP | assistance | Provided assistance in the investigation |
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | Operating an unlicensed money transmitting business | 18 U.S.C. § 1960 | MOHANAD AL-ZUBAIDI | pleaded guilty | 0 | enrichment | ||||||||
| 2019 | Operating an unlicensed money transmitting business | 18 U.S.C. § 1960 | SHAKER SALEH MOHAMMED HAUTER | pleaded guilty | 0 | enrichment |
| fin_id | action_type | amount | currency | description | asset_type | defendant | status |
|---|---|---|---|---|---|---|---|
| 480 | forfeiture | $385,000 | USD | Forfeiture ordered as part of sentencing | cash | MOHANAD AL-ZUBAIDI | ordered |
| 481 | forfeiture | $430,000 | USD | Forfeiture ordered as part of sentencing | cash | SHAKER SALEH MOHAMMED HAUTER | ordered |
| victim_id | victim_type | description | number_affected | loss_amount | geographic_scope | vulnerability_factors | impact_description |
|---|---|---|---|---|---|---|---|
| 551 |
| quote_id | quote_text | speaker_name | speaker_title | speaker_organization | quote_type | context | significance |
|---|---|---|---|---|---|---|---|
| 403 | Mohanad Al-Zubaidi and Shaker Saleh Mohammed Hauter ran an underground financial network that illegally transferred tens of millions of dollars between the United States and the Middle East. The sentences imposed yesterday send a clear message that those who operate these unlawful financing networks will be held accountable. | Jay Clayton | U.S. Attorney for the Southern District of New York | United States Department of Justice | statement | Announcing the sentencing of the defendants and emphasizing consequences for illegal financial networks | Highlights the legal accountability for operating unlicensed money transmission systems and the deterrent effect of the case |
| theme_id | theme_name | description | significance | related_statutes | geographic_scope | temporal_aspects | stakeholders |
|---|---|---|---|---|---|---|---|
| 2725 | Hawala Scheme | Operating an unlicensed money transmitting business using the hawala system to illicitly move over $65 million between the U.S. and Middle Eastern countries. | Enabled evasion of financial regulations and facilitated money laundering, aiding criminal enterprises. | 18 U.S.C. § 1960 | International | Historical trend (2018–2022) | AL-ZUBAIDI, HAUTER, international money brokers, law enforcement agencies |
| 2726 | Unlicensed Money Transmission | Operating an unlicensed money transmitting business in violation of U.S. financial regulations. | Undermined legal financial oversight and enabled illicit transactions. | 18 U.S.C. § 1960 | International | Historical trend (2018–2022) | AL-ZUBAIDI, HAUTER, law enforcement agencies |
| 2727 | Money Laundering | Using the hawala system to launder criminal proceeds through informal channels. | Concealed the origin of illicit funds and facilitated cross-border criminal finance. | 18 U.S.C. § 1956 | International | Historical trend (2018–2022) | AL-ZUBAIDI, HAUTER, international criminals, law enforcement |
| 2728 | International Financial Networks | Collaboration with an international network of money brokers to execute transfers. | Highlighted global reach of illicit financial systems and cross-border criminal coordination. | International | Historical trend (2018–2022) | International money brokers, AL-ZUBAIDI, HAUTER | |
| 2729 | Criminal Sentencing and Forfeiture | Defendants sentenced to prison terms, supervised release, and ordered to forfeit $385,000 and $430,000. | Deterrence of financial crimes and recovery of illicit gains. | 18 U.S.C. § 981, 18 U.S.C. § 3551 | National | Recent development (2025 sentencing) | Defendants, U.S. courts, victims (indirectly via forfeiture) |
| 2730 | Law Enforcement Collaboration | Coordinated investigative efforts by IRS Criminal Investigation, U.S. Postal Inspection Service, and U.S. Customs and Border Protection. | Demonstrated multi-agency cooperation to combat financial crimes. | National | Historical trend (2018–2022) | IRS, U.S. Postal Inspection Service, U.S. Customs and Border Protection |
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