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– court heard
While his wife collected huge sums of money from people associated with drug accused Roger Khan, bank vice president Arnold Budhram deposited it into bank accounts in small sums to avoid filing currency transaction reports (CTR), which help detect money laundering.
Budhram and his wife Sabrina have pleaded guilty to money laundering in a US court and are awaiting sentencing.
According to court documents, which this newspaper has seen, Arnold Budhram who was VP-Operations at Astoria Federal Savings Bank admitted to knowingly and intentionally… breaking down amounts of currency in “excess of [US] $10,000 into amounts less than [US] $10,000 and depositing smaller amounts of currency into an account in a financial institution”.
The Budhrams laundered over US$10 million for the Roger Khan organization, the US government has said in the charge against them.
Justice Edward R. Korman before whom the Budhrams appeared, asked Arnold Budhram to inform the court in his own words what he had done.
He responded, “Exactly what you just said.”
Judge: “I can’t hear you.”
Arnold: “Exactly what you just read.”
Judge: “Well, I know that but I need…”
He was then prompted by his lawyer to tell the court in his own words what he had done.
Arnold: “Making deposits less than [US] $10,000 in the bank. Breaking the [US] $10,000 into 5 and 4. Not 5 and 5, 5 and 4 not to file CTR.”
Judge: “You did that to avoid filing CTR?”
Arnold: “Exactly.”
Judge: “And that was the purpose?”
Arnold: “Yes.”
His wife, Sabrina, admitted that she: “collected approximately US$365,000, arranged to have it sent back to Guyana.”
Judge: “Did you know what was the source of this money?”
Sabrina: Yes, Your Honour.”
Judge: “Did you know it was from an illegal source?’
Sabrina: “Yes, sir.”
The CTR came into existence with the passage of the Currency and Foreign Transactions Reporting Act, better known as the Bank Secrecy Act (BSA), in 1970.
When the first version of the CTR was introduced the only way a suspicious transaction of less than US$10,000 was reported to the government was if a bank teller called an agent and provided the information. This was due, primarily, to the concern by financial institutions about the Right to Financial Privacy. On October 26, 1986, with the passage of the Money Laundering Control Act, the Right to Financial Privacy was no longer an issue. As part of the Act, Congress had stated that a financial institution could not be held liable for releasing suspicious transaction information to law enforcement.
Other court documents had indicated that a handwritten “money and drug ledger” found in the couple’s New York home referred to individuals who are believed to be Khan’s co-conspirators.
Bank records indicated that in 2001, a company associated with the Budhrams transferred money to a bank account in the name of Khan’s wife and child and it appeared that Khan was in direct contact with the Budhrams in early 2003.
The Budhrams were arrested and charged with money laundering on April 6, 2004 and investigators searched their home and work offices and gathered a large amount of evidential material. They were granted US$5 million bail each, which was put up in cash and surety by many family members who were present in court when they made their first appearance.
They were also placed under electronic monitoring and are not allowed to leave their home without permission except to go to work.
The prosecution had revealed how the bank vice-president, Arnold Budhram, and the radiology technician, Sabrina Budhram, used a company they had set up and their connections to launder money for drug traffickers operating in Guyana.
Sabrina Budhram is the sister of Peter Morgan, who is now facing drug charges in New York after being extradited from Trinidad. Records showed that in at least one case the couple transferred funds in his name.
