During a three-and-a-half year period, over 1,000 deposits totaling US$6.3 million were strategically placed into bank accounts controlled by indicted Guyanese pilot Khamraj Lall and his mother Joyce Lall in order to avoid detection of the movements of the funds, according to United States authorities.
Lall, who is now facing a trial for bulk cash smuggling in a Puerto Rican court after being found there with US$620,000 stashed onboard his plane last year, is also the subject of forfeiture action brought by the US government for a total of US$442,743 held in 14 accounts controlled by Lall, his wife Nadinee, his mother or connected businesses.
Lall, who was building a private hangar at the Cheddi Jagan International Airport when he was nabbed in Puerto Rico, owns and operates Exec Jet Club and Exec Jet Sales, with the latter between registered as a business in Florida. He also owns Kaylees Investments and Shannon Investments, both of which appear to be real estate investment holding companies.
The authorities contend that deposits into the accounts were illegally “structured” to avoid the filing of currency transaction reports (CTRs), while the funds were used, in part, to purchase and/or improve Lall’s “nonmonetary properties,” comprising real estate, aircraft and a Lexus vehicle.
In a court filing last December in the civil court of New Jersey, authorities noted that when US domestic financial institutions are involved in a transaction for the payment, receipt or transfer of US currency in an amount greater than US$10,000, they are required to file the CTRs. The CTRs, which are filed with the Internal Revenue Service (IRS), require disclosure of the identity of the individual who conducted the transaction and the individual organisation for whom the transaction was completed.
It was also noted that many individuals involved in illegal activities, such as tax invasion, money laundering, and narcotics trafficking, are aware of the reporting requirements and take active steps to cause financial institutions to fail to file CTRs in order to avoid detection of the movement of large amounts of cash.
“Structuring,” which involves making multiple cash deposits or withdrawals in amounts of US$10,000 or less on the same day or consecutive days, and which is prohibited by law, is among the practices employed to avoid the filing of CTRs.
According to the court filing, none of the deposits into accounts linked to Lall, his wife and his mother in three financial institutions—Wells Fargo, JP Morgan Chase Bank and Citibank—exceeded US$10,000 although many of the deposits were made the same day or on consecutive days. “While none of the deposits during this period of time were in an amount in excess of $10,000, there were a number of instances where the total of two or more deposits made on the same day or during a short period of time exceeded $10,000,” it says, while pointing out that during the week of July 8, 2013, 19 separate deposits, none of which individually exceeded US$10,000 but which totalled US$117,0000 were made into nine of the accounts as well as line of credit accounts.
The authorities say it is clear from the records that the source of the funds used to purchase and improve Lall’s nonmonetary properties was currency that had been structured into the accounts in a pattern indicative of an intent to avoid the filing of a CTR. “Furthermore, transfers among accounts and advances from lines of credit appear to have been used to obfuscate the fact that the source of funds used to purchase the defendant’s nonmonetary properties was currency that had been deposited in a structured manner,” the filing says.
It was noted that in October of 2013, JP Morgan Chase Bank sent Lall a letter indicating that a pattern of cash transactions appeared designed to evade the CTR filing requirements. Enclosed with the letter was an instructional pamphlet published by the Financial Crimes Enforcement Network informing Lall that structuring is illegal. However, Lall’s behaviour did not change after he received the letter.
Apart from the cash held in the 14 bank accounts, authorities are also going after three properties owned by the couple, the aircraft and the Lexus vehicle.
Authorities allege that a Ringwood, New Jersey property, purchased by the Lalls in 2002, was purchased and improved with US$541,605 in funds that were structured into bank accounts for the purpose of avoiding the filing of a CTR. Also, they allege a Citra, Florida property, purchased for US$121,500 by Shannon Investments in 2013, was also bought with funds that were structured into bank accounts, as was a Hamptonburgh, New York property that was purchased by Kaylees for US$350,000.
In relation to the aircraft, US$381,232 traceable in structured funds were allegedly transferred for the purchase of one plane, N822QL, while US$525,000 was allegedly transferred for the other, N923SL.
In addition, US$47,101 that can allegedly be traced to structured funds was said to be used for the purchase of Lall’s Lexus.
On November 23, 2014 authorities Puerto Rico arrested Lall after he was found with the cash hidden on the aircraft even though he had only declared US$5,000 when first approached. Searches of Lall’s private aircraft during a refueling stop at the Luis Munoz International Airport, in San Juan, on November 22, uncovered US$150,000, wrapped in plastic bags and a blanket under the exit row seat and US$470,000 in a black suitcase inside a compartment next to the engines, which contained several black garbage bags containing bundles of currency.
Lall, authorities said, accepted responsibility and ownership for the money and informed that his co-pilot and his father, who were with him during the refuelling stop, had nothing to do with the cash
According to the grand jury indictment, which was seen by Stabroek News, Lall is charged with bulk cash smuggling. It is alleged that with the intent to evade a currency reporting requirement, he knowingly concealed more than US$10,000 in currency and other monetary instruments and transported and transferred and attempted to transport and transfer such currency and monetary instruments from a place in the US, that is, Puerto Rico, to a place outside the US, that is, Guyana, in violation of United States Code 5332(a) (1) and (2).
