MONEY LAUNDERER by Kenneth Rijock
Now on with the conclusion of last week's segment on how and why I testified against my clients. I went off to the minimum-security prison at Eglin Air Force Base, in the Florida Panhandle, with a four-year sentence. Gain Time, or time deducted from one's assigned sentence, is only 15% since the Federal Sentencing Guidelines became law in 1987. That meant I would be serving roughly 41 months in custody. This was not a very pleasant thought, understanding three and a half years of confinement. It was difficult to take, because I knew I was there because clients whom I had zealously (and recklessly) protected for a decade had put me there to lessen their own sentences. Since they had thrown me under the bus, my loyalty was gone, and that would represents a problem for the clients, as it was yours truly who had started a lot of their drug profits on a long journey into the tax havens of the world. I knew intimate details of their placement, layering and integration techniques, as I had created many of them myself. In short, I knew where the financial bodies were buried.
- The Swiss government had just organised the first Swiss-American joint investigation, seeking to identify drug profits in Swiss banks, for eventual seizure and forfeiture, and also the lawyers and bankers who were representing drug traffickers and assisting them with opening up banking relationships in Switzerland.
- Law enforcement wanted some with first-hand knowledge of the entire money laundering pipeline that the clients operated, from bulk-cash smuggling into the tax havens of the Caribbean and on into Swiss banks. The promise of a reduced sentence for cooperating was a strong incentive, but even more was the chance to hit the former clients in their pocketbooks; All bets were off.
- One day, I was abruptly picked up and placed in the Federal Prison in Tallahassee, I was to testify before a Swiss magistrate sent specially to Florida to hear me trace the flow of dirty money, from drug profits on the streets of America, to its present location, in Swiss financial institutions. The funny thing was, I had expressly vetoed the idea of sending any large amounts of cash into Swiss banks, for I knew that there was a chance that the money could be seized at a later date. Unfortunately, wealthy and successful clients, even in the drug businesses, can be incredibly arrogant, and they disregarded my advice. Now they would pay dearly for that mistake.
- The bilingual DEA Agent who was the liasion with the Swiss served as an interpreter, and I detailed the entire operation to the magistrate. Did it trouble me to expose these secrets? Certainly, but in my new reality, where the clients had become enemies and the law enforcement agencies friends, it made sense to change horses in mid-stream, to return to the side of the law that I has left a decade earlier.
- The US and Swiss governments eventaully seized millions of dollars of my former clients' money, and it did hurt. Years later, the client's present lawyer/money launderer refused to shake my hand when we met by accident in the law library, and he told a lawyer friend that I had "cost his clients a lot of money." I couldn't be more pleased with that intelligence; call it payback for betrayal of trust.
My sentence was reduced to only two years, and after serving only twenty-one months, I was released from Eglin, and that's wny I sometimes get irritated when people accuse me of gaining my freedom at the expense of my clients.
Next week: back to my days as an enthusiastic, and effective, compliance officer, and how I did it.
The facts and opinions stated in this article are those of the author and not those of World-Check. World-Check does not warrant the accuracy of any facts and opinions stated in this article, does not endorse them, and accepts no responsibility for them.
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