TAMPA, Fla. — Four men have been indicted in the Middle District of Florida for conspiracy to commit bank fraud and conspiracy to commit money laundering of more than $128 million following a joint investigation with Homeland Security Investigations (HSI) Tampa.
Daniel Liburdi, 35, of Miami, Florida; Joseph Scotto, 44, of Bay Shore, New York; Gregory Walker, 43, of Ontario, Canada; and Frank Carbone III, 35, of Orlando, Florida, face 50 years in federal prison. Each bank fraud and conspiracy to commit bank fraud offense carries a maximum penalty of 30 years in federal prison. The conspiracy to commit money laundering offense carries a maximum penalty of 20 years in federal prison. Liburdi and Carbone III are also charged with bank fraud.
The indictment also notifies the defendants that the United States intends to forfeit three residences in Miami Beach, and one in the U.S. Virgin Islands, which are alleged to be traceable to proceeds of the offense. In addition, the government is seeking an order of forfeiture in the amount of $128,144,908.66.
According to the indictment, Liburdi, Scotto, Walker, and Carbone conspired to commit bank fraud by submitting fraudulent applications to U.S. financial institutions to obtain merchant processing accounts. These applications contained the private personal information of unwitting individuals, obtained by the conspirators under false pretenses. After fraudulently obtaining these merchant accounts, the conspirators were then able to accept credit and debit cards to further an e-commerce enterprise which used high-risk and unscrupulous sales techniques. By using the personal information of unwitting individuals, the conspirators insulated themselves from personal liability and risk associated with their business model, to the detriment of those persons, and to the financial institutions which materially rely on honest and full disclosures of ownership when providing merchant services. As a result of their activities, the conspirators obtained criminal proceeds processed through these fraudulent accounts exceeding $128 million dollars.
The indictment also charges the defendants with conspiring to launder their criminal proceeds. The conspirators allegedly used the proceeds of their bank fraud activity to pay for services in promotion of the scheme, such as advertising services. The conspirators shared in the proceeds of the bank fraud through these transactions, moving criminal proceeds in and between conspirator-controlled bank accounts.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was jointly investigated by HSI Tampa and the Internal Revenue Service – Criminal Investigation Tampa. Additional assistance was provided by the Pasco Sheriff’s Office, HSI Miami and HSI New York, as well as IRS-CI Miami and New York. It will be prosecuted by Assistant U.S. Attorney Adam J. Duso.
HSI Tampa’s area of responsibility, which includes 10 geographically strategic offices, covers more than 51,600 square miles of the total 65,757 square miles in the state of Florida. This region has more than 14.2 million people and includes 58 of the 67 counties. HSI Tampa also includes five of the 10 largest cities in Florida, 15 primary commercial service airports, and 11 seaports.
Learn more about HSI Tampa’s mission to increase public safety in Florida communities on X, formerly known as Twitter, at @HSITampa.