Declaration in Support
of
Application for Warrant
of
Arrest In Rem I, Terry B. Tate, after being duly sworn, depose and state as follows:
1
I am a Special Agent with United States Secret Service and am currently assigned to the Raleigh Resident Office. As part
of
my duties I analyze financial transactions to detect possible structuring and money laundering activities. My duties include the investigation
of
the proceeds
of
illegal activities, specifically money laundering violations
of
18
U.S.C.
§§
1956 and 1957, as well as violations
of
31
U.S.C.
§§
5324 and 5331.
2
This affidavit is made in support
of
an application for a warrant
of
arrest in rem for all monies and things
of
value up to $359,557.25 contained in better business checking account number 802070987 and business sweep account number 802121715 at Capital Bank in the name
of
Marla Bednar d/b/a Marla Enterprises. Probable cause exists to believe that such monies are subject to seizure and forfeiture to the United States pursuant to
31
U.S.C.
§
5317(c)(2), on the ground that they constitute property involved in, or traceable to, withdrawals structured to avoid currency reporting requirements, in violation
of
31
U.S.C.
§
5324.
I
Currency Transaction Reports and Structuring 3. Title 31, United States Code, Section 5313 and
31
C. F. R. § 1010
of
the Bank Secrecy Act (BSA) require any financial institution that engages with a customer in a currency transaction (i.e., a deposit or withdrawal) in excess
of
l0,000
to report the transaction to the Internal Revenue Service on Form 4789, Currency Transaction Report ( CTR ). These regulations also require that multiple transactions be treated as a
.u..._ ...
Case 5:14-cv-00476-FL Document 1-1 Filed 08/22/14 Page 1 of 7
transaction
i
the financial institution has knowledge that they are by, or on behalf of, the same person, and they result in either currency received or disbursed by the financial institution totaling more than $10,000 during any one business day. CTR Forms require, among other things, the identity
o
the individual who conducted the transaction and the individual or organization for whom the transaction was completed.
4
CTRs are often used by law enforcement to uncover a wide variety
o
illegal activities, including narcotics trafficking and money laundering. Many individuals involved in these illegal activities are aware
o
such reporting requirements and take active steps to cause financial institutions to fail to file CTRs. These active steps are often referred to
as
smurfing or structuring and involve making multiple cash deposits or withdrawals in amounts
o
$10,000 or less. Structuring
is
prohibited by Title 31, United States Code, Section 5324(a)(3) and not only involves the proceeds
o
illegal activities but also legal source income. The law
is
clear that structuring in and
o
itself
is
a felony violation.
5
In order to establish the crime
o
structuring transactions to evade reporting requirements, the government must prove that, for the purposes
o
evading the reporting requirements
o
section 5313(a) or any regulation prescribed under any such section, the subject structured or assisted in structuring, or attempted to structure or assist in structuring, any transaction with one or more domestic financial institutions in amounts of$10,000 or less.
2
Case 5:14-cv-00476-FL Document 1-1 Filed 08/22/14 Page 2 of 7
II. Marla Bednar and Thomas Bednar d/b/a Marla Enterprises have structured 246,230.00 in cash withdrawals
6.
On January 28, 2011, Marla Bednar d/b/a Marla Enterprises, 1420 Falls River Ave., Raleigh, NC 27614, opened Capital Bank better business checking account number 802070987. Marla Bednar and Thomas Bednar are listed on the bank signature card as signers on the account. On Febraury 23, 2011, Marla Bednar d/b/a Marla Enterprises, 1420 Falls River Ave., Raleigh, NC 27614, opened Capital Bank business sweep account number 802121715. Marla Bednar and Thomas Bednar are listed on the bank signature card as signers on the account.
7.
I obtained and analyzed records maintained by Capital Bank regarding the above mentioned accounts. From January
6
2014 through May 29, 2014, twenty-eight (28) suspicious cash withdrawals were made from Capital Bank better business checking account number 802070987. Twenty-three (25) withdrawals were made in amounts just under the CTR filing threshold; the twenty-sixth is included only because it was made on a consecutive day with a withdrawal in the amount
of
9,500.00; the twenty-seventh and twenty-eighth are only included because there were two cash transactions in one day totaling 7,950.00 The withdrawals are as follows:
Date mount
1
01106/14 9850.00 2. 02/24/14 9500.00 3. 02/28/14 9700.00
4.
03/03/14 9300.00
5.
03/05/14 8820.00
6.
03/11114 9950.00
7.
03/18/14 9870.00 Counter Withdrawal
Check
1264 (cash)
Check
1271
(cash)
Check
1276 (cash)
Check
1278 (cash)
Check
1286 (cash)
Check
1299 (cash)
3
Case 5:14-cv-00476-FL Document 1-1 Filed 08/22/14 Page 3 of 7