Two men have been sentenced for their roles in operating an unlicensed money transfer business that handled over $65 million between the United States and Middle Eastern countries. Mohanad Al-Zubaidi and Shaker Saleh Mohammed Hauter received three-year prison sentences from U.S. District Judge P. Kevin Castel. They pled guilty on January 15, 2025, for the illicit operations.
U.S. Attorney Jay Clayton emphasized the significance of the sentencing, stating, “Mohanad Al-Zubaidi and Shaker Saleh Mohammed Hauter ran an underground financial network that illegally transferred tens of millions of dollars between the United States and the Middle East. The sentences imposed yesterday send a clear message that those who operate these unlawful financing networks will be held accountable.”
The illegal activity, conducted between 2018 and 2022, involved hundreds of transactions through a system known as "hawala." Through these operations, Al-Zubaidi and Hauter managed transfers ranging from thousands to hundreds of thousands of dollars, earning commissions from one to six percent of the transferred amounts. The system is often used by money launderers and criminals to move funds abroad without detection.
Along with the prison terms, Al-Zubaidi and Hauter, aged 37 and 52 respectively, received two years of supervised release. They were also mandated to forfeit $385,000 and $430,000.
The Internal Revenue Service Criminal Investigation and U.S. Postal Inspection Service conducted the investigation. Clayton also recognized the involvement of U.S. Customs and Border Protection in the case. The prosecution was managed by the Office’s General Crimes Unit, with Assistant U.S. Attorneys Matthew J. King and Amanda C. Weingarten leading the charge.
