Prosecutors in Detroit uncover massive money-laundering operation between US and Dubai

[erronis]

Source: Stars and Stripes

DETROIT — Federal prosecutors in Detroit have seized about $12 million in cash they allege was part of a massive money-laundering operation, called “The Shadow Exchange,” operating between the U.S. and the United Arab Emirates.

A forfeiture complaint unsealed this week in federal court in Detroit alleges that some of the laundered money was used to buy armored vehicles for an illegal drug trafficking operation based in Michigan.

The shell companies involved in the scheme, mostly located in Dubai in the United Arab Emirates, used fake invoices and other methods to disguise the origins of money, sent to banks — including major U.S. banks — using dozens of wire transfers, the complaint alleges.

“An organized group of individuals operated an unregistered U.S. dollar money transmitting and money laundering business (the ‘Shadow Exchange’) based in Dubai,” the complaint alleges.

Read more: https://www.stripes.com/theaters/us/2021-10-23/money-laundering-operation-us-dubai-3347270.html

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I haven't seen this reported in the "major" news outlets yet. Found out via Heather Cox Richardson's morning piece:
https://heathercoxrichardson.substack.com/p/october-23-2021?

There are three stories in the news today that seem to me to add up to a larger picture.

First is the story of money laundering, which seems suddenly to be all over the news. Today we learned that federal prosecutors in Detroit have broken into a massive money-laundering operation between the United States and the United Arab Emirates called “The Shadow Exchange.” They confiscated $12 million and suggest this is the tip of the iceberg.

This story comes just weeks after the release of the Pandora Papers, which detailed the ways in which the world’s wealthy hide money. The United States is one of the money-laundering capitals of the world, and the consequences of our lax financial legislation are coming home to roost. Experts say that because of the lack of transparency required in our financial transactions, hundreds of billions of dollars are laundered in the U.S. every year.

... more ...

[Aviation Pro]

1. Smells like a DeVos/Prince op

Remember Scamway is headquartered in Michigan.

[Scrivener7]

3. And there will be a Kushner in there somewhere too.

[DENVERPOPS]

15. Only if

he gets a rather substantial "handling" fee or commission...........Un-traceable of course.........

We desperately need someone other than Garland....................

[Scrivener7]

16. Desperately.

[sinkingfeeling]

8. I was thinking it might have been run by Trump Jr.

[NotHardly]

12. If we had an operational DOJ, maybe someone would do something about this...

... emphasis on the word operational.

[Irish_Dem]

2. Are politicians getting a cut of this action to look the other way?

Many politicians enter congress poor and come out very rich.

[Baitball Blogger]

25. Or the CIA?

[stillcool]

4. seems like everything is coming home to roost

what we've done unto others.

[Crowman2009]

5. Probably one of the reasons why real estate prices have been as high as they are right now.

A lot of empty business & residential buildings and houses out their in every major city.

[AllaN01Bear]

7. probably why a lot of things are very high. and this is one of the major reasons

why we have so many homeless.

[AllaN01Bear]

6. wonder if tfg is invloved . i always felt that most us business men were crooks .

not all.

[bucolic_frolic]

9. Sort of echoes the DeLorean case, though he was acquitted

and lots of bootleg whiskey, tainted and real, entered the US during Prohibition through the Great Lakes area

[DFW]

10. There has to be a bigger picture

A MUCH bigger picture, actually. In the realm of international money laundering, $12 million is chump change. Remember Dick Cheney's pals "lost" $9 BILLION in cash in Iraq somewhere--in just ONE reported instance--and his government didn't find it worth while to pursue the loss intensively.

Here in the EU, specifically Germany, drug operations set up dummy taxi companies, pizzerias and video game parlors in out-of-the way places, and wash millions in drug money every week--under the radar, and yet in plain sight. A friend in the BKA (German FBI) told me how this works. It's not done in large bills or gold. That's for headlines for the politicians. The real money laundering is done in €5, €10 €20 and €50 bills. Mountains of them. Mountain ranges of them. I.e. drug dealing receipts. The taxi companies, video game parlors and pizzerias generate hundreds of thousands per week in receipts for transactions that never took place. They then cart off the small bills to the bank, declare them like good citizens, make their deposit, and say business is great. Taxes are paid, and the money is suddenly clean. Everybody is happy. These guys are well-organized mafiosi (Lebanese in our area, but from all over the Mediterranean in Germany, France and Spain). The authorities don't try to grab them because they shoot back, and have paramilitary training. It's easier to grab some small shop proprietor that sold two Krugerrands for cash on one invoice, instead of making two receipts for each one to stay under the €2000 limit. The politicians get their headlines, and no one gets hurt (especially them).

The twelve million had better be the tip of an iceberg! If it's not, it's more headlines for politicians, and otherwise of little import. There needs to be a couple of zeroes to add on before it becomes an operation worth a big investigation, and I'm betting those zeroes are there. Lebanese gangs have a linguistic affinity and geographic proximity to the UAE, as well as a large Lebanese community to hide in around the Detroit area. A good friend of mine of Lebanese origin (she was a journalist, had nothing to do with the gangs), was born in Kentucky, but raised in the Detroit area since she was a little girl.

[h2ebits]

14. This is how it is done in the US too

A few years ago, I listened to an FBI agent specializing in money-laundering describe how money laundering is accomplished in the US. Same scenario that you describe here.

As has been said repeatedly: "Follow the money." I'm assuming that the Kushner, Trump names will come into focus soon. Trump's criminal enterprise is massive. That's why he has such a fight going on to take over our government.

[FakeNoose]

27. Yes I agree

Also there has to be a reason why so many Muslim Arabs have migrated to the Detroit area. WTF? It's certainly not because of their great weather. And it's not because they love the Tigers and the Lions. It's puzzling that for the last 20 years or more, Muslim Arabs have been coming into eastern Michigan, mainly Detroit by the busloads. There's something going on and the Muslims are involved. You're right, my dear DFW, this is the tip of the proverbial iceberg.

[DFW]

28. Could be, but be careful with conclusions.

Many years ago, I drove through Elko, Nevada. I was stunned to see signs and banners everywhere with "Zazpiak Bat," the Basque version of E Pluribus Unum. It means "out of seven (Basque provinces), one (Euzkadi,)" i.e. the Basque homeland. Now, Euzkadi, the Basque Country, as we call it, is hilly, misty, and much of it is on the seacoast. Elko is flat, baking hot, with 105° in the shade, of which there is none. I no more understand why the Basques settled in Elko than why the Lebanese settled in Detroit.

[radicalleft]

29. IDK...maybe because of the auto industry?

I work for one of the big three and can write with confidence that a large segment of our engineers are of middle eastern decent. Now they too have families that have grown up here and are catered to by businesses that do well in their communities...I.e., Dearborn and the surrounding areas...

[FakeNoose]

30. I'm sure a lot of it is "word of mouth" recommendations

Once a few immigrants get established in an area they will start helping their family and friends to come over. Of course the family members will want to live near each other, just to learn the neighborhoods and getting jobs etc. That's only natural I suppose.

We Americans will do the same thing when going to foreign countries. However the concentration of Muslim Arabs in Detroit is far more than that. They have been able to buy property inexpensively, I'm sure that's part of it. I believe most Arabs learn English as a 2nd language, so they aren't disadvantaged by a language barrier. None of this is illegal or even objectionable in America. I was simply remarking how astonishing that they chose Detroit, of all places. Also, a lot of their businesses seem to be cash-based because (I suppose) it's part of their culture. As DFW suggests, we should refrain from drawing conclusions from that.

[h2ebits]

11. Heather Cox Richardson is amazing

I subscribe to her daily "letter" and saw this bit of information last night. Thanks for adding the Stars and Stripes news letter to flesh it out a little bit more.

The web of deceit and corruption is monstrous. Every thread that gets pulled reveals more and more. My stomach is churning with the evil of it all.

[johnthewoodworker]

13. Please, $12 million to the Nazis is nothing. It's a couple of pennies in the bottom of the purse.

[TeamProg]

17. Interestimg to see where this goes. n/t

[Bobstandard]

18. Wait! They used the money for a armored vehicle?

I keep worrying about the crack pot right wing militias. We know they are weapons fetishists and have giant stockpiles of just about everything. Imagine your local police force going up against an armored vehicle supporting a couple hundred heavily armed proud boy types.

[ancianita]

19. As I watched rolling credits for Dune last night I wondered if that HUGE Unit 2 Dubai personnel

list was financial laundering there somehow. Lots of armies in final battle scenes. Lots of location support systems.

There are all kinds of buffers and shells to hide laundering. Moviemaking is one of them -- all kinds of foreign financiers, banks, insurance carriers, legal firms, etc.

[GoneOffShore]

20. Dubai - Disneyland with slavery and the death penalty.

[Smackdown2019]

21. Is Trump involved?

Would not surprise me if Trump is involved.....

[LiberalLovinLug]

23. This is one of the REAL reasons the US is not tough on the 9/11 terrorist country.

Way too many shady arrangements with American politicians. When there is that much money involved. Billions, maybe trillions, the temptation for corruption is too great.

[2naSalit]

24. Perhaps this...

Is part of who/what owns so many politicians in this country.

[Baitball Blogger]

26. I wonder. If we could make a severe stop to these laundry operations,

would the money that backs Dubai suddenly dry up?