Arnold Budhram, who had pleaded guilty to laundering money for drug pushers in Guyana, was last Friday sentenced to three years probation with six months of that period being spent at home while he is electronically monitored.
According to documents seen by this newspaper, Senior Judge Edward R Korman handed down the sentence which also orders Budhram to reimburse the probation department for the cost of the electronic monitor.
Arnold and his wife, Sabrina, who also pleaded guilty to money laundering and is awaiting sentence, were arrested and charged with money laundering on April 6, 2004. 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. Over US$400,000 which was seized by the authorities from accounts held at two banks, Astoria Federal Savings Bank and the JP Chase Morgan Chase Bank, was forfeited to the state by an order made on April 5, 2005.
While Sabrina collected huge sums of money from people associated with drug accused Roger Khan, Arnold, a vice president at a bank, deposited it into bank accounts in small sums to avoid filing currency transaction reports (CTR), which help detect money laundering.
Court documents had revealed that Arnold 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 said in the charge against them.
During his pleading session before Justice Korman, Arnold was told 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…”
Arnold 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.”
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.
Meanwhile, Sabrina is also hoping that she will receive a non-custodial sentence as according to her their son has an eating disorder and he needs almost round-the-clock attention which can only be provided by her.
As she awaits her sentence Sabrina had two of her former colleagues from the Middle Village Radiology write glowing references about her, which were relayed to the court.
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 prosecution had revealed how the bank vice-president and the radiology technician 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.
