A Louisville resident, Benard Babot, 39, has been sentenced to 66 months in federal prison for conspiracy to commit money laundering. The sentence was handed down by U.S. District Judge Karen Caldwell.
Court documents show that Babot was involved in a scheme where his coconspirators contacted businesses worldwide, convincing them to send funds for goods that were never delivered. Babot opened at least 25 business bank accounts using the names or similar names of legitimate international food, agricultural, or chemical supply companies. Some of these accounts were opened in Lexington, Kentucky. He also established shell companies with Secretaries of State to imitate these legitimate businesses.
Babot provided account information to his coconspirators, who then directed victims to wire payments into these accounts. After receiving the funds, which victims believed were payment for goods they never received, Babot moved the money through additional accounts, sent cashier’s checks and wire transfers to other conspirators overseas using peer-to-peer services, and withdrew large sums for personal use—often exceeding $10,000.
Between January 2019 and December 2023, Babot helped conceal more than $8.2 million in fraud proceeds from schemes targeting over 30 international businesses across more than 25 countries. He personally earned nearly $2.5 million from his involvement and used the proceeds on personal expenses and business ventures such as his night club in Louisville.
Federal law requires Babot to serve at least 85 percent of his sentence before becoming eligible for release. After completing his prison term, he will be supervised by the U.S. Probation Office for three years.
Paul McCaffrey, Acting United States Attorney for the Eastern District of Kentucky; and Olivia Olson, Special Agent in Charge of the FBI's Louisville Field Office; jointly announced the sentencing.
The FBI led the investigation. Assistant U.S. Attorney Kate Dieruf prosecuted the case.
