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Bank VP deposited ‘dirty’ money in small sums

– court heard

While his wife collected huge sums of money from people associated with drug accused Roger Khan, bank vice president Arnold Budhram deposited it into bank accounts in small sums to avoid filing currency transaction reports (CTR), which help detect money laundering.

Budhram and his wife Sabrina have pleaded guilty to money laundering in a US court and are awaiting sentencing.

According to court documents, which this newspaper has seen, Arnold Budhram 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 has said in the charge against them.

Justice Edward R. Korman before whom the Budhrams appeared, asked Arnold Budhram 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…”
He 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.”
His wife, Sabrina, admitted that she: “collected approximately US$365,000, arranged to have it sent back to Guyana.”
Judge: “Did you know what was the source of this money?”
Sabrina: Yes, Your Honour.”
Judge: “Did you know it was from an illegal source?’
Sabrina: “Yes, sir.”

The CTR came into existence with the passage of the Currency and Foreign Transactions Reporting Act, better known as the Bank Secrecy Act (BSA), in 1970.

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.

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 Budhrams were arrested and charged with money laundering on April 6, 2004 and 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.

They were also placed under electronic monitoring and are not allowed to leave their home without permission except to go to work.

The prosecution had revealed how the bank vice-president, Arnold Budhram, and the radiology technician, Sabrina Budhram, 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.

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44 Responses to “Bank VP deposited ‘dirty’ money in small sums”

SandHurst First
on October 12th, 2008 6:08 am

AND THE WALLS CAME TUMBLING DOWN!!!!!!!!!!!!!!!!!!

[Reply to this]
guy123
on October 12th, 2008 6:24 am

Back in the old days of people migrating to New York,mostly Brooklin,they were a respected group of hard working people who came to make an honest living and get an education,now sadly the entire Guyanese community will be branded along with this greedy bunch.

[Reply to this]
john brown
In reply to the above comment on October 12th, 2008 8:47 am:
greedy is putting it mildly.

[Reply to this]
MR.WEST BANK
In reply to the above comment on October 12th, 2008 8:53 am:
The world get to know the country, Guyana after Jim Jones,
the world is now looking and will be looking in days ahead
at Guyana because of Roger Khan and this PPP administration.

[Reply to this]
VIJAY SINGH
on October 12th, 2008 7:08 am

It is common knowledge that there are several families in Georgetown dealing in drugs.Only the Govt. and Police do not know this! There are several big dealers in the city who are well known and seem to go about their dirty business without interference. Sad but true!

[Reply to this]
MR.WEST BANK
In reply to the above comment on October 12th, 2008 4:39 pm:
If you know why the police and gov’t of guyana don’t ?.

VIJAY SINGH, I find it very difficult to believe that the
police and the guyana gov’t don’t know about
these guys but the U.S. Gov’t know all of them.

You may recall that they, the guyana gov’t told us that
they don’t know who is Roger Khan and he Khan had
full page add about helping the same police and gov”t
of the day.

[Reply to this]
VIJAY SINGH
In reply to the above comment on October 12th, 2008 7:54 pm:
Hi West Bank, THE GOVT. AND THE POLICE HAVE SELECTIVELY PERMEABLE EARS AND EYES. WHEN THEY CAN BE BENEFICIARIES, THEY CLOSE BOTH EYES/EARS. Now that Roger is in custody THEY DO NOT KNOW HIM. IN INDIAN PARLANCE, THIS IS NIMAKHARAAM. IT IS VERY SAD THAT A POTENTIALLY VERY RICH COUNTRY KEEPS ON BEGGING FOR ALMS WORLDWIDE. COMMUNISM IS THE HOLY SCRIPTURE OF THE PPP AND THEY LIKE THE PNC ARE BENT ON MAKING THEMSELVES PROMINENT IN NOTORIETY.INDIANS DO NOT SEE THE NEGATIVES OF THE PPP, SAME FOR THOSE WHO BACK PNC. BOTH THESE ENTITIES HAVE DESTABILISED A NATION THAT TODAY IS THE BLACK SHEEP IN THE REGION. if you can, read book by Clem Seecharran, “”Sweetening bitter sugar”

coolieman
In reply to the above comment on October 12th, 2008 7:50 pm:
Seems like you know a lot more than the police why not give them the imfo

[Reply to this]
VIJAY SINGH
In reply to the above comment on October 13th, 2008 12:29 am:
Coolieman, The police/govt. know all about the dirty business that take place in Guyana.

alexis 296
In reply to the above comment on October 13th, 2008 1:29 pm:
vijay singh because the poeple who deal with the dirty business tell you and you tell the police/govt.
john brown
on October 12th, 2008 9:06 am

this paper doesn’t publish my comments. this is the same papers that accused the government of supressing press freedoms. how hypocritical.

[Reply to this]
SandHurst First
In reply to the above comment on October 12th, 2008 10:35 am:
because your comments are one sided and racial in most cases!! FREEDOM TO THE PRESS!!!

[Reply to this]
john brown
In reply to the above comment on October 12th, 2008 6:25 pm:
i am sure you have never read any of my comments cause if you did, you would have been more philosophical. i have written things that are factual. Are you really a soldier !!!!! what a pity.

malaika06
In reply to the above comment on October 13th, 2008 8:42 am:
It would be very courteous and fair if the Stabroek News editor can outline why this blog moderator seems to be axing comments willy nilly.

Mr moderator can you please explain to us bloggers what and what not is “printable” to write?

I see many blogs that are in some cases outright accusations. And in other cases malign and impugne on character, race and downright unsubstantiated facts.

Thank you very much
John Smith
on October 12th, 2008 9:26 am

In Guyana the culture is that these shady characters with there fancy homes, fleets of expensive vehicles and their “business towers and empires”, have become simbols of reverence and fear. They walk around “beating” their chest, announcing thier presence and attracting the get-rich-quick, young generation to do their dirty work for them. They mingle with the “high” in society and try to blend in with the ligitmates.They are known by all and sundry and they are given free reign in this country.

I hope they go to jail for more than 40 years, so when they get out the residue of the ill gotten money that has escaped the American authorities, would have been squandered buy those who are place steward over it. I also hope those in Guyana who are allowed to do their thing are finally rounded up by the US and place in the big house.

[Reply to this]
torbo
In reply to the above comment on October 12th, 2008 11:01 am:
well said john smith, i alway wonder how all these expensive cars driving
the streets of guyana it look odd and also these big homes and when you
inquire who own these cars and home people tell you is the drug cartels,
so one has to wonder if the govt. and security forces dont know this???

[Reply to this]
evileyes
In reply to the above comment on October 12th, 2008 7:06 pm:
Torbo you suffering from foot and mouth disease…like Guyanese not supposed to own anything nice in their life as far as you are concerned….Only in the US eh?

gtbeat
In reply to the above comment on October 13th, 2008 9:55 am:
Torbo….. you’re so typical of the mindset a lot third world immigrants possess you look around at what others have and wonder why is it you don’t have the same, then you selfishly conclude that they into illegality,STOP!!!! the stereotyping,STOP!!! the perpetuation of profiling.
torbo
on October 12th, 2008 11:05 am

these guyanese are giving the hard working guyanese/americans a
very bad name when you go and apply for a job you better not disclose place
of birth…..

[Reply to this]
Cheryl
In reply to the above comment on October 12th, 2008 6:33 pm:
Well said torbo

[Reply to this]
malaika06
In reply to the above comment on October 13th, 2008 8:49 am:
The two of you, please, just stop your nonsense!!!

I abhor drug dealers and the consequences they wreak on society. Nonetheless, with a few exceptions there are worse beasts than the few Guyanese drug kingpins, who come from other countries, some right in this region.

So please, behave yourself and ALWAYS be proud to be a GUYANESE!!! There are double many of us who have done us proud on the world stage

SHARMA
In reply to the above comment on October 15th, 2008 12:07 pm:
Torbo that is a lie. I am here thirty years, but you cannot let the american or employers know where you are from. We are one of the most loved people in this country. let me know who is scarring you.

[Reply to this]
Ankoko
on October 12th, 2008 12:16 pm

Guyana has allowed these persons with their ill gotten gains/funds to create a safe haven here. There is no will to root them out because of what they provide. On the other hand legit businessmen get no respect and are targeted by the Gov’t in devious ways. Trotz and his building which was destroyed by the JF while they were hunting/silencing/killing ‘Blackie’
The only power the people of Guyana have over this is to free themselves at the ballot box. This will take some doing given the present political climate of ‘race first’ and disorganised, self destructing political opposition. In the meantime the powers that be use every available tool to destabilise the opposition and further entrench themselves. May God help us!!

[Reply to this]
michael tannassee
on October 12th, 2008 2:45 pm

The fact that both of these malcontents,, have pleaded guilty as charged ,, make it an open and shut case for the prosecutors as they begin to tell us more abt the GUYANA “tony montana” !……

[Reply to this]
val
on October 12th, 2008 6:00 pm

Greed is sin

[Reply to this]
berry
on October 12th, 2008 6:40 pm

there is more in the mortar beside the pessle. just think about that.

[Reply to this]
Cheryl
on October 12th, 2008 7:02 pm

Some time ago, I had blogged about these big homes built and being built now, the government knows about them, when I was about to purchased my first home in 1994 in the US, I had to show proof of my large balances in an account, that was not finished, I had to show proof that three savings accounts in my name were closed, those monies taken and placed into one account, then I had to show proofs of large deposits, those were shown by work and vacation checks, my husband had to show proof and so did my son, papers were sent to our jobs, W2 forms had to be shown etc: we had no problem in gaining a morgage from the bank. Decent citizens here are placed through the mills, these people were allowed to do whatever, because he was the big bank man, what a shame, jail all of them for life. The Government in Guyana are seeing all of these big homes being built, these people are using business fronts as a cover up, there are many big stores right here in the US, because of this story, Uncle Sam is going to investigate all of them now, these people had a splendid opportunity to leave guyana, attended colleges and turned out as big crooks, to be a radiology technician takes years of study in a college, that’s a very hard medical study, look at the shame, jail them and the brother and Rk for years, they have brought shame on Guyana and decent citizens there and abroad.

[Reply to this]
Charriot
In reply to the above comment on October 13th, 2008 12:41 am:
My comments were the same as yours, but a little raw. So SN did not post it.
There is a lot more to be revealed, many heads will roll, and many will have a long drop from the top!!!!

[Reply to this]
gtbeat
In reply to the above comment on October 13th, 2008 10:14 am:
Cheryl, if it is true that Guyana’s development is funded by drug money,I understand you outrage, but then you don’t have to look too far at the at the glitz and glamour of LAS VEGAS a city built by the MOB and still being run by some degree by the MOB.
Native Americans don’t have money to build and operate casinoes,they live on dirt patches, there is dirty money involved in many US start up enterprises…..I don’t condone this, but it’s the way of the world today, so lets all stop being so naive.

[Reply to this]
guy123
In reply to the above comment on October 13th, 2008 3:25 pm:
gtbeat….I beg your pardon?What did you say about Native Americans?What don’t they have..and where do they live?

SHARMA
In reply to the above comment on October 15th, 2008 12:27 pm:
Cheryl, no desrespect to you just information to be Radiology Technician dont take years to study or college you can go to a business school like we called it in Guyana is just like becoming a CNA you can do a three weeks course. Do you know that a Nurse Technician can aquire in nine weeks three weeks for each, three for the cna, three for ekg and three for the phlo. that is all it takes. It was said how they treat you when you were buying your home, i never heard of such in this country because myself and housband had a smooth transition. You must check place of employment you must have the w2 form, that is what cause the mortgage melt down because people was not screen like your family did they produce phoney doc. and got inflated mortgage and know they were lyning with the doc. produce they are not making the money and cannot afford to pay if something happen. And the high interest rate will kill them and the real estate gone with most of the money and the people are left struggling. Thank god for what they did to you, you dont sound like you have a problem with your home they help you not hurt you.

[Reply to this]
slimsuave
on October 12th, 2008 7:49 pm

And d bell keeps tolling. the zenith of greed! for everything there is a time & season.. others were burning while u were earning & living it up. time to face d music so dance well..

[Reply to this]
roar
on October 12th, 2008 9:37 pm

aanokoko what r u sayin that was illegal when the joint force distroy de trotz building ? like u forget that the j f ask de business trotz if blackie was staying in de hotel and he said no also you forget that wanted bullitin was out for blackie de most wanted man den since 1989 eh? and tell me who in thir right sense would go and vote for pnc when we suffered in their hands for almost three decades.

[Reply to this]
SHARMA
In reply to the above comment on October 15th, 2008 12:34 pm:
ROAR WHAT ARE YOU TALKING ABOUT, WAS GUYAN EVERY HAD THIS AMOUNT OF KILLING BACK IN THE DAYS OF THE PNC. THINK FROM 2002 TO PRESENT THE SERIOUS KILLING THEY HAD IN GUYANA. WHO HAS THE MONEY TO FUNNEL THE BUSINESSES THINK I WILL NOT MENTION THIS IS NOT THE PLACE FOR THIS. THINK ABOUT THE COMPANY THAT WERE EXPORTING TIMBER BACK IN THE DAYS DO YOU THINK IT WAS ONLY TIMBER, BE FOR REAL WHO EXPORT TIMBER THAT IS WHY ROGER KHAN CAME HOME AND WENT INTO TIMBER HE IS NOT STUPID.

[Reply to this]
Charriot
on October 13th, 2008 12:45 am

SN !!! where is the democracy!!! You guys always lock me out whenever I speak the truth.

[Reply to this]
Shea30
In reply to the above comment on October 13th, 2008 1:10 pm:
no kidding….talkative Charriot…

[Reply to this]
Balwant Persaud
on October 13th, 2008 11:05 am

Guyana is a chaotic society. The big drug dealers are well respected by the police and the PPP politicians.

You dare not report anyone of them to the police or your dead body will be found lying somehere in GT. Remember George Bacchus and others?

I had cause to report a criminal and the police provided him a detailed transcript of my report and never charged him.

[Reply to this]
roar
on October 13th, 2008 1:06 pm

it dos so sik to read how some ppl does chastise dis government about kuropshun an kontroling de gpf /gdf but dem don’t remba about de predominant partywhich rule before they also forget since in that regime de gpf /gdf only take order from government and let me remind some of u about that gec genarator what was stolen in de pnc time de same who aledgelly accused for it is runin fu president now.

[Reply to this]
malaika06
In reply to the above comment on October 13th, 2008 2:24 pm:
I just love ur new language style. Heck! it’s so credible

[Reply to this]
guy123
In reply to the above comment on October 13th, 2008 3:26 pm:
Lol…lol!!!
roar
on October 13th, 2008 5:16 pm

dis is fu de blogger who say e make a criminal report and de police neva charge de person and they provide a detail transcript to de person blogger also say to my understanding under this govt. if u speak de truthppl will find u dead like Bacchus and others but e did’t mention Teeka and others in PNC time i’m not defending PPP i’m just speaking de truth about de 2 party, let me make dis clear with every body i was living in guyana when ppp was helpless/afraid to talk, i saw Ravi Dev on tv speaking without fear when he was saying that guyanese like to say we r one he then ask de question how come one set ppl is robbing, beating and killin a nada set a ppl and burning down store in town and using slogan slow fia mo fia how cum we r one ? i am takin about 1998, 1999/ 2000 and that was when i became roar until now you see fren we people dus wuk fu wat we want eg plant rice, rare cattle/fowl/duck etc etc. i am not defending those PPP KORRUPT ONES IN OFFICE OR ANY DRUG CARTEL OR THOSE WHO WANT JOIN WITH THOSE PPL RAPE, ROBB/ KILL ,we sensiable ppl don’t say when govt. can’t find job for us we show fraustration and turn to killing robbery we create we own job and if we can’t we go and wuk wid other people in de backdam that is why i don’t understand how some people like to say we have money and all de wealth, we dus wuk and that is what our great great grand parents(bahut bahut ajaa and ajee )teaches us work hard for what u want. Over to sn moderator and those bloggers bye bye or ta ta.

[Reply to this]
guy123
In reply to the above comment on October 14th, 2008 5:05 am:
roar,I agree with your comment,if you work hard,you will have what you want,we have hard working people,weather they are ppp or pnc,but in both cases,there are those who give their race a bad name,and I think it is time for us to recognise that there are bad guys on both sides,but we must not support them,because we think of them as part of our group, all of us had forparents who thought us about hard work,but some went the wrong way because of greed and stupidity.

[Reply to this]
Politricks
on October 14th, 2008 12:41 pm

Roar - u gud bai, yuh taak de faax, demm peple nah wan fuh wuk fuh wat dem want, dem rada teef, kill, n do skul duggery wuk to mek life hard to abey guyanese.

[Reply to this]
Incognegro
on October 15th, 2008 8:17 am

Big up Roger Khan….the freedom fighter…LOL

[Reply to this]