DETROIT — Federal prosecutors in Detroit have seized about $12 million in cash they allege was part of a massive money-laundering operation, called

Prosecutors in Detroit uncover massive money-laundering operation between US and Dubai

submited by

Style Pass

2021-10-24 01:30:13

DETROIT — Federal prosecutors in Detroit have seized about $12 million in cash they allege was part of a massive money-laundering operation, called "The Shadow Exchange," operating between the U.S. and the United Arab Emirates.

A forfeiture complaint unsealed this week in federal court in Detroit alleges that some of the laundered money was used to buy armored vehicles for an illegal drug trafficking operation based in Michigan.

The shell companies involved in the scheme, mostly located in Dubai in the United Arab Emirates, used fake invoices and other methods to disguise the origins of money, sent to banks — including major U.S. banks — using dozens of wire transfers, the complaint alleges.

"An organized group of individuals operated an unregistered U.S. dollar money transmitting and money laundering business (the ‘Shadow Exchange’) based in Dubai," the complaint alleges.

"The Shadow Exchange provided services to persons seeking to transfer U.S. dollars in a manner calculated to avoid anti-money laundering measures of the financial system and the scrutiny of international law enforcement." Also, "customers of the Shadow Exchange also included at least one international criminal organization."