Arnold Budhram sentenced to three years probation
Arnold Budhram, who had pleaded guilty to laundering money for drug pushers in Guyana, was last Friday sentenced to three years probation with six months of that period being spent at home while he is electronically monitored.
According to documents seen by this newspaper, Senior Judge Edward R Korman handed down the sentence which also orders Budhram to reimburse the probation department for the cost of the electronic monitor.
Arnold and his wife, Sabrina, who also pleaded guilty to money laundering and is awaiting sentence, were arrested and charged with money laundering on April 6, 2004. Investigators searched their home and work offices and gathered a large amount of evidential material. They were granted US$5 million bail each, which was put up in cash and surety by many family members who were present in court when they made their first appearance. Over US$400,000 which was seized by the authorities from accounts held at two banks, Astoria Federal Savings Bank and the JP Chase Morgan Chase Bank, was forfeited to the state by an order made on April 5, 2005.
While Sabrina collected huge sums of money from people associated with drug accused Roger Khan, Arnold, a vice president at a bank, deposited it into bank accounts in small sums to avoid filing currency transaction reports (CTR), which help detect money laundering.
Court documents had revealed that Arnold who was VP-Operations at Astoria Federal Savings Bank admitted to knowingly and intentionally… breaking down amounts of currency in “excess of [US] $10,000 into amounts less than [US] $10,000 and depositing smaller amounts of currency into an account in a financial institution.”
The Budhrams laundered over US$10 million for the Roger Khan organization, the US government said in the charge against them.
During his pleading session before Justice Korman, Arnold was told to inform the court in his own words what he had done.
He responded, “Exactly what you just said.”
Judge: “I can’t hear you.”
Arnold: “Exactly what you just read.”
Judge: “Well, I know that but I need…”
Arnold was then prompted by his lawyer to tell the court in his own words what he had done.
Arnold: “Making deposits less than [US] $10,000 in the bank. Breaking the [US] $10,000 into 5 and 4. Not 5 and 5, 5 and 4 not to file CTR.”
Judge: “You did that to avoid filing CTR?”
Arnold: “Exactly.”
Judge: “And that was the purpose?”
Arnold: “Yes.”
When the first version of the CTR was introduced the only way a suspicious transaction of less than US$10,000 was reported to the government was if a bank teller called an agent and provided the information. This was due, primarily, to the concern by financial institutions about the Right to Financial Privacy. On October 26, 1986, with the passage of the Money Laundering Control Act, the Right to Financial Privacy was no longer an issue.
As part of the act, Congress had stated that a financial institution could not be held liable for releasing suspicious transaction information to law enforcement.
Meanwhile, Sabrina is also hoping that she will receive a non-custodial sentence as according to her their son has an eating disorder and he needs almost round-the-clock attention which can only be provided by her.
As she awaits her sentence Sabrina had two of her former colleagues from the Middle Village Radiology write glowing references about her, which were relayed to the court.
Other court documents had indicated that a handwritten “money and drug ledger” found in the couple’s New York home referred to individuals who are believed to be Khan’s co-conspirators.
Bank records indicated that in 2001, a company associated with the Budhrams transferred money to a bank account in the name of Khan’s wife and child and it appeared that Khan was in direct contact with the Budhrams in early 2003.
The prosecution had revealed how the bank vice-president and the radiology technician used a company they had set up and their connections to launder money for drug traffickers operating in Guyana.
Sabrina Budhram is the sister of Peter Morgan, who is now facing drug charges in New York after being extradited from Trinidad. Records showed that in at least one case the couple transferred funds in his name.
This is a significant development, and I do hope the authorities have gathered enough evidence to use against Roger Khan and others, who have wreaked havoc on the lives of others during the years that they have been involved in their nefarious trade.
A mind is a terrible thing to waste, is the lesson learnt from this tragic tale of greed and corruption. I hope they and others learn their lesson.
Arnold got a light sentence: PROBATION! Will Sabrina get a real prison sentence since she was the one who literally interacted between Khan and his co-conspirators to launder 10 million dollars?
Well, the state seized over $400,000 and that would be the equivalent of fines.
Now, what’s the latest with the Roger case? Still no lawyer? Then let him have a court-appointed one! At this stage he should be advised to cop a plea deal.
wow………….probation eh, very lucky guy hope he counts his lucky stars and do the right thing going forward;
Well, Well, Well, this is just the tip of the iceberg, when will the big fish that Khan sang about earlier be called into justice. Be afraid!! Be very afraid!!!
Crimes pays,? seems so, look at the amount of monies these people transacted, this is a slap on the wrist, he’s a stay home husband and dad for six months, and three yrs probation, darn, no wonder crime would always be around. I thought these two criminals would have both received ten yrs each, Uncle Sam getting soft.
No uncle sam not soft, he used them to get evidence
Exactly. Such crap.
Well I feel encouraged to launder some cash if that is all the punishment I’ll get. Hell, at the end of 3 years I would have earned more cash than if I had a “regular good paying” job. Fly to GT and live like a Queen!
Aparently crime does pay…
Cheryl. There are two aspects to each crime. Motive and Opportunity. He had the opportunity, his wife had the motive. Maybe she forced him to do what he did because of his position. He confessed fully. He was used by his wife and her family. In his case, justice was tempered with mercy. The wife should be severely punished. The sick child should not be used as an excuse. I feel sorry for Mr. Budhram A typical case of Adam and Eve.
I sooooooooo agree with you!!!
this is where the system fails……only 3 years of probation….they laundered millions of US dollars…and i bet theres more that the FEDS didnt find…..and only 3 yrs probation….they should have being doing some hard time behind bars….i dont care how much u “Friends” write good references about u…….they still gonna be living lavishly with the spoils of their crime while on probation….so in real life terms uncle sam get his $$ ( kinda like late taxes) and they get a slap on the wrist….
That is payment for testifying.
,,,,,What a “Soft” penality,,,,,
Arnold, the probation is downpayment for future “HITS” like in the best of the top ten hit tunes,,,, he will sing, and sing, and sing
its this is reflection of how with the new admistration will run things,,,,,,you can commit a crime and just relaxed home…with probation…..people were sent to prison for less that that…..are encouriging the drugs trade……
Your new administration, has not yet been sworn in. Sometime to get the BIG FISH, you go easy on the LITTLE ONE. Stay tune the best is yet to come.
true guyanese. Do not pre judge the NEXT admistration. The US justice system is not as stupid as some of us will like to think. When this complicated web is finally unweaved, some BIG ONES in Guyana, will fall from grace. Let justice take it’s course. The river, despite it’s long and winding path, inevitably flows into the sea. HAVE SOME PATIENCE.