The Laundry Man by Kenneth Rijock ( Penguin/Random House UK)

Wednesday, May 14, 2014


Caribbean Transfers, Ltd., a Canada-based remittance-to-Cuba company, whose owner is facing money laundering conspiracy charges in the United States, for $30m in alleged medicare fraud transfers, has responded to the allegations, and attempted to deflect blame upon those Miami financial institutions that facilitated the massive flow of criminal proceeds into government-owned banks in Cuba, while denying liability.

The MSB, which has since "rebranded' itself as , also struck out at Miami media reports on the case, which involved the illicit transfer of Medicare fraud proceeds, from Miami, to accounts at Royal Bank of Canada in Montreal, on to shell companies in Canada and Trinidad, and finally into government-controlled banks in Cuba. The most notorious aspect of the case was the physical transport of twenty boxes, full of money orders, reportedly all obtained in Miami, to the MSB in Canada. One wonders how the compliance officers at the Miami sources for all those millions of dollars in money orders have explained their professional negligence, otherwise known as malpractice, to law enforcement and regulators.

In a major statement, on its website, Caribbean Transfers has denied all the allegations, claiming that it was simply a remittance company. I will attempt to give you accurate translations from the original Spanish, in grammatical English, as it is my policy to air both sides of all controversies, so that you can arrive at an educated conclusion:

"The stories begin at the beginning, and in the beginning, it is the Miami banks that handled the 70 accounts of Medicare fraudsters."

"Our company is not a US company, has no office, nor has any assets in that country, so it is absurd to think that one can buy 20  boxes of money orders, and send them to Cuba."

"The unjust accusation against our management is conspiracy to launder money. The charged of conspiracy to launder money is unfounded."

"Those who buy bank drafts are US citizens who want to send remittances to Cuba."

"willful blindness is a contagious disease in Miami."

"Money laundering is in Miami, not in Cuba."

I am at a loss to explain how the Canadian Government, having certainly been advised by US law enforcement agencies of the massive movement of criminal proceeds, in US dollars, into Cuba, did not immediately shut down Caribbean Transfers. I am also questioning the sound judgment of the bankers and compliance officers who watched this flood of US Dollars pass through their hands, with nary a whisper to the RCMP. Was it the lucrative fees earned by the bank ?

I give the banks in both Miami and in Canada a compliance grade of "F" for utter failure. no wonder Miami has now become the Medicare fraud capital of the United States.

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