Alamdar Hamdani U.S. Attorney | U.S. Attorney for the Southern District of Texas
A California man has confessed to operating an illegal money transmitting business, according to an announcement by U.S. Attorney Nicholas J. Ganjei.
Victor Rubio Jr. admitted his involvement in running an unlicensed money transmitting operation from 2021 to 2022, which was connected to a business email compromise (BEC) scheme. He managed this by using shell companies that existed only on paper.
As part of his plea agreement, Rubio acknowledged that he opened and maintained bank accounts specifically for collecting funds from at least two victims of the BEC scheme. These victims included a healthcare liability insurance company based in Georgia and a township in New Jersey. For a fee, Rubio then transmitted the fraud proceeds to co-conspirators.
The fraudulent activities involved sending spoofed email instructions leading victims to send interstate wire transfers intended for legitimate creditors directly to Rubio instead.
In total, more than 45 individuals across multiple states have been charged in various business email compromise schemes affecting numerous victims, including Rubio and seven others in the Southern District of Texas.
U.S. District Judge George Hanks is set to impose sentencing on April 22. At that time, Rubio could face up to five years in federal prison along with a maximum fine of $250,000.
Rubio has been allowed to remain on bond until the sentencing hearing.
The investigation was conducted by the FBI - Bryan Resident Agency and IRS Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys Belinda Beek and Thomas Carter.
