Internet Payment Processor Liberty Reserve Accused of Laundering $6 Billion

pdclarry writes with a followup to this weekend's story that Liberty Reserve, a huge international payment processor, had been shut down and its founder had been arrested. "Liberty Reserve, apparently the Internet bank of choice for criminals, as reported by the NY Times, Wired and Business Week, has been accused of laundering over $6 billion dollars. Incorporated in Costa Rica in 2006, Liberty Reserve allegedly 'facilitated global criminal conduct' and was created and structured 'as a criminal business venture, one designed to help criminals conduct illegal transactions and launder the proceeds of their crimes,' Manhattan U.S. Attorney Preet Bharara said in an indictment (PDF) unsealed today. Chatter on criminal web sites show a rising sense of panic as fortunes have disappeared in an instant."

Comments

How is this news?

[haruchai]

There's a financial agency that's not a money-laundering operation? We live in interesting times.

Re:as opposed to the 300 trillion

[Anonymous Coward]

Or the $420 billion laundered by Wachovia, for which they paid a $160 million fine.

This is almost certainly less than the profit they made - international money transfers are not cheap - and nobody was prosecuted.

It really is one law for the rich...

Re:as opposed to the 300 trillion

[anagama]

Good on Judge Gleason! I'm glad to hear that he may torpedo that travesty of a deal. Still, Obama's legal team is working hard to protect the banksters:

The deal -- known as a deferred prosecution agreement (DPA) -- meant HSBC was exempt from prosecution and triggered a storm of criticism. Judge John Gleeson is now believed to be considering rejecting the deal, a move that could leave HSBC facing a criminal prosecution and the threat that its charter to do business in the US could be revoked. ... The justice department is believed to be challenging the need for Gleeson's approval after failing to get a quick signature while the judge is upholding his opinion that he must sign off on the DPA.