By Jacob Nakamura
(Tumon, Guam) The Internal Revenue Service today published documents out of Seattle that give the world a first glimpse at the money laundering schemes involving Gov. Ralph Torres that are part of the federal raids on November 7, 2019.
On November 8 and 9, 2019, Internal Revenue Service seized a total of $456,079.60 from Gov. Ralph Torres's confidante, agent and money man Alfred Lam Yue, who is listed first in the infamous Dirty 30. The seizures were from three of Mr. Yue's bank accounts:
$271,087.88 from a Bank of Saipan account ending in 0157 (November 8, 2019)
$39,188.38 from a Bank of Saipan account ending in 2098 (November 8, 2019)
$145,803.34 from a Bank of Guam account ending in 2064 (November 9, 2019)
The money was forfeited to the IRS.
The Dirty 30 is the list of people and businesses whose transactions with Imperial Pacific International (CNMI), LLC has been subpoenaed by a federal grand jury. The records are due January 30, 2020 to the U.S. District Court of the Commonwealth of the Northern Mariana Islands.
Also on the list is Attorney Michael Dotts, who represented Mr. Yue's business associate Ron Li Anderson's Legend Realty in limited matters and who spoke to Saipan media in the wake of the FBI raids.
Legend Realty's offices were raided on November 7, along with the IPI financial office, the Governor's Office, the governor's home, and the governor's brothers's law firm, Torres Brothers, LLC.
Land transactions and the money flowing from these transactions as they relate to the casino and public corruption are at the heart of the federal grand jury subpoena. The transactions of the 30 people and companies on the list are tied to a local company named Billion Ventures, which has offices on Capitol Hill, and Wu, Chia Lien.
Mr. Yue conducted transactions with Legend Realty that are under federal scrutiny. His company, Marianas Consultancy Services, also is listed on the Dirty 30.
According to the Internal Revenue Service, their conviction rate for financial crimes is among the highest of all federal law enforcement agencies. Only the IRS has jurisdiction over financial investigations, which includes tax crimes, money laundering, and violations of the Bank Secrecy Act.
According to the IRS:
Financial investigations are usually very document-intensive. Specifically, they involve records, such as bank account information, real estate files, motor vehicle records, etc., which point to the movement of money. Any record that pertains to or shows the paper trail of events involving money is important. The major goal in a financial investigation is to identify and document the movement of money. The link between where the money comes from, who gets it, when it is received and where it is stored or deposited, can provide proof of criminal activity.
Tax evasion, public corruption, health care fraud, telemarketing fraud and terrorist financing are just a few of the types of crimes that revolve around money. In these cases, a financial investigation often becomes the key to a conviction. Traditional law enforcement relies on investigative tools such as crime scene analysis, physical evidence, fingerprint identification or eyewitness accounts. The limitations of these techniques become obvious to those who are trying to prove wrongdoing in a sophisticated financial crime. With no proof, there is no conviction.
What are the Major Areas of Financial Investigations?
IRS Criminal Investigation’s focus on financial investigations falls into three interdependent categories: Legal Source Tax Crimes, Illegal Source Financial Crimes, and Narcotics-Related Financial Crimes/Counterterrorism Financing. These three areas are mutually supportive and create a well-rounded law enforcement program for IRS which addresses the growing fraud in legal industries as well as penetrates the nucleus of money laundering operations and drug trafficking/terrorist financing organizations.