JOHN
P. GILBRIDE, the Special Agent in Charge of the United States Drug
Enforcement Administration (“DEA”) in New York, MICHAEL
J. GARCIA, the United States Attorney for the Southern District of
New York, MICHAEL J. THOMAS, the Special Agent in Charge of the United
States Internal Revenue Service, Criminal Investigation Division
(“IRS-CID”) in New York, RAYMOND W. KELLY, the Commissioner
of the New York City Police Department (the “NYPD”),
MARTIN FICKE, the Special Agent in Charge of the Department of Homeland
Security, Bureau of Immigration and Customs Enforcement (“ICE”)
in New York, ANDREW ARENA, the Special Agent in Charge of the Federal
Bureau of Investigation Criminal Division (“FBI”) in
New York, and MARK SMITH, Major of the New York State Police (“NYSP”),
all of whose agencies are members of the Organized Crime Drug Enforcement
Task Force’s Strike Force (the “Strike Force”),
jointly announced today the arrest of MARTIN TREMBLAY, a Canadian
national and President and Managing Director of the Bahamas-based
investment firm Dominion Investments, Ltd.
An
Indictment was unsealed in Manhattan federal court charging TREMBLAY
with participating in a long-term money laundering scheme. The Indictment
alleges that from approximately 1998 through December 2005, TREMBLAY
conspired with others to launder $1 billion in illegal proceeds for
numerous Dominion Investments clients, all in exchange for a substantial
commission.
According
to the Indictment, TREMBLAY’s company, Dominion Investments,
is an investment services provider and financial advisor incorporated
in the Commonwealth of the Bahamas in 1994, licensed by the Securities
Commission of the Bahamas, and a member of the Bahamas Financial
Services Board. Dominion Investments’ website states that Dominion
Investments is a “leader in the offshore financial services” market,
offering its clients “the knowledge and expertise they need
to effectively use international tax planning, asset protection,
and other wealth preservation techniques.”
The
Indictment charges that from approximately 1998 through December
2005, TREMBLAY used Dominion Investment accounts to receive hundreds
of millions of dollars in the proceeds of international narcotics
trafficking, securities fraud scams, income tax evasion, mail and
wire fraud schemes, and bank fraud, among other crimes. TREMBLAY
then laundered the illicit funds by transferring them into United
States bank accounts and offshore bank accounts in Canada, the Bahamas,
and elsewhere around the world. To further conceal the source and
nature of these funds, TREMBLAY and his co-conspirators created shell
companies and fictitious entities, using the same false nominees,
addresses, and telephone numbers, to launder these illegal proceeds.
The Indictment alleges several specific instances of large quantities
of illicit funds being laundered through Dominion Investment accounts
including $50,000,000 in the proceeds of a tax evasion and wire fraud
scheme; $3,000,000 in the proceeds from the sale of GHB kits, more
commonly known as the “date-rape drug”; and millions
of dollars derived from cocaine trafficking and numerous stock fraud
schemes. Between 2003 and 2004, TREMBLAY laundered more than $1 billion
through his Dominion Investments-related bank accounts. The Indictment
includes a forfeiture allegation seeking forfeiture of these funds.
TREMBLAY
was captured as a result of an undercover sting operation conducted
by the Strike Force in 2005, during which TREMBLAY was videotaped
agreeing to launder large amounts of money earned from narcotics
sales. Approximately $220,000 was eventually transferred by wire
to Dominion Investments-related accounts as per TREMBLAY’s
instructions.
If
convicted on the money laundering charges, the defendant faces a
maximum sentence of 20 years’ imprisonment and a fine of twice
the value of the laundered narcotics proceeds.
The
Indictment is the culmination of a joint investigation between the
United States Attorney's Office, the Strike Force, and other law
enforcement agencies inside and outside the United States.
Special
Agent in Charge John Gilbride stated: "This indictment demonstrates
that the DEA is committed to not only dismantling the drug organizations
that are responsible for distributing their illegal and destructive
substances throughout our communities but those individuals who launder
their money. To make a significant impact on the drug trade, there
is no strategy more effective than following the money back to the
drug source, targeting the laundering mechanism, and eliminating
the profits that fuel the operations of the drug networks.” SAC
Gilbride commended the United States Attorney’s Office Southern
District of New York, the Miami Field Division, DEA, the Bern Country
Office, DEA and the Ottawa Country Office, DEA for their diligent
work and assistance in this successful investigation.
Mr.
GARCIA stated: “These charges reaffirm this Office’s
commitment to pursuing those who grow rich from crimes on our streets
and in our markets, wherever the perpetrators may be.” Mr.
GARCIA praised the outstanding investigative efforts of the Strike
Force and the individual performance of its component agencies.
Assistant
United States Attorney GLEN G. McGORTY is in charge of the prosecution.
The case is being prosecuted by the Office’s International
Narcotics Trafficking Unit. The forfeiture charges are being prosecuted
by Assistant United States Attorneys CHRISTINA BISCHOFF and LISA
KOROLOGOS of the Office’s Asset Forfeiture Unit.