A California resident, Victor Rubio Jr., has confessed to operating an illegal money transmitting business. This announcement was made by U.S. Attorney Nicholas J. Ganjei.
Rubio admitted that between 2021 and 2022, he managed an unlicensed money transmitting operation that dealt with funds obtained from a business email compromise (BEC) scheme. He conducted this operation using shell companies that existed solely on paper.
As part of his plea agreement, Rubio acknowledged setting up and managing bank accounts to collect funds from at least two victims involved in the BEC scheme. These victims included a healthcare liability insurance company based in Georgia and a township located in New Jersey. Rubio then transferred the fraudulent proceeds to co-conspirators for a fee.
Victims were misled by fraudulent wire instructions sent from spoofed email accounts, leading them to transfer payments to Rubio instead of their actual creditors.
More than 45 individuals across various states have been charged in separate BEC schemes affecting numerous victims, including Rubio and seven others within the Southern District of Texas.
U.S. District Judge George Hanks is scheduled to sentence Rubio on April 22. He could face up to five years in federal prison and a maximum fine of $250,000.
Rubio has been allowed to remain on bond until the sentencing hearing.
The investigation was carried out by the FBI - Bryan Resident Agency and IRS Criminal Investigation, while Assistant U.S. Attorneys Belinda Beek and Thomas Carter are handling the prosecution.