Money Transmitting Business Pleads Guilty to Failing to Report Transactions, Agrees to Forfeit $700k Following HSI San Diego Investigation

SAN DIEGO — Taaj Services US LLC, one of the nation’s fastest-growing money transmitting businesses, pleaded guilty in federal court June 26, admitting that it failed to report financial transactions involving more than $10,000 in U.S. currency as required by the Bank Secrecy Act. Homeland Security Investigations (HSI) is investigating this case.

As part of the plea agreement, Taaj Services admitted that it was never licensed to operate in California, among other states. Beginning in November 2019, the company entered into a conspiracy with another money transmitting business referred to as MTB-1, which was licensed to operate in California. Taaj used MTB-1 as a front to transfer money in California without a license. With the use of MTB-1, Taaj’s California-based customers could send money abroad without state regulatory scrutiny of its compliance with the Bank Secrecy Act because California regulators would never know of Taaj’s operations in the state.

From Nov. 27, 2019, to Dec. 11, 2019, Taaj collected $703,078 from MTB-1’s operations in the Southern District of California and elsewhere. Taaj never reported these currency transactions as required by the Bank Secrecy Act. As part of the plea agreement, Taaj agreed to forfeit $700,000 to the U.S. government.

Taaj also admitted to transporting $900,000 in physical U.S. currency to the Middle East on behalf of MTB-1 in 2020 without reporting the exchange of currency between the two companies.

Further, after the COVID-19 pandemic interrupted international commercial flights, Taaj was no longer able to physically transport currency abroad on MTB-1’s behalf. As a result, Taaj began using MTB-1’s bank account to wire money abroad. Taaj would provide MTB-1 with cash for MTB-1 to deposit in its bank and then electronically transfer the money on Taaj’s behalf. Taaj admitted that it delivered more than $66 million dollars to MTB-1 as part of this practice and neither company filed any reports to document the exchange.

The plea agreement provides for deferred entry of judgment, whereby the government will defer prosecution of the offense for a 24-month deferral period. If Taaj fully complies with the agreement, the government will dismiss the prosecution after the 24 months.

This case is being prosecuted by Assistant U.S. Attorneys Michael A. Deshong, Carl F. Brooker IV, and Christopher Beeler.