Dothan banks involved in million dollar funds seizure
Approximately a million dollars has been seized from bank accounts—some in Dothan---as a result of an international investigation into money laundering and wire fraud allegations.
One of those at the center of an ongoing federal case is Theodore Hudson II, whose home on Whatley Drive was raided last summer by FBI agents.
A few days later the U.S. Commodity Futures Trading Commission announced the unsealing of a civil enforcement action filed in the U.S. District Court for the Middle District of Alabama. It charges Hudson and his company, My Monex, with operating a fraudulent scheme involving foreign currency and failure to register with the CFTC as required federal law.
Also charged was Husam Tayeh of Oak Lawn, Illinois and his company, Dinar, Inc.
During recent weeks, $994,000 was seized. The money was in accounts belonging to either Hudson, Tayeh, their companies, family members, or acquaintances, according to federal court documents.
$20,000.00 seized from Pentagon Federal Credit Union in the name of Theodore S. Hudson and/or Adelina C. Hudson
$33,869.44 seized from Fifth Third Bank in the name of Husam U. Tayeh or Fatima Khudeira
$140,920.18 seized from Fifth Third Bank in the name of Luxury Trade, LLC
$97,315.50 seized from Fifth Third Bank account number in the name of Luxury Jewelers, LLC
$112,781.17 seized from Fifth Third Securities account number in the name of Husam U. Tayeh and Fatima Khudeira
$150,000.00 seized from SunTrust Bank
$130,000.00 seized from BB&T
$250,000.00 seized from Compass Bank
$150,000.00 seized from JPMorgan Chase Bank
$10,000.00 in United States currency withdrawn from SunTrust Bank by Theodore Hudson, III.
Documents also show that Hudson showed deposited, from February 5, 2014 until September 30, 2014, in excess of $1,400,000.00 at the Dothan branch of Tyndall Federal Credit Union. He is alleged to have closed the account on June 30, 2015---one month before agents raided his home.
All banks were served with search warrants and complied. They are not implicated of misconduct or law violations.
The U.S. government wants to the funds condemned that would allow it to keep the money.
It’s also alleged that Hudson violated a restraining order when he withdrew $10,000 from an account and gave it to his son. A search warrant later revealed the money had been placed in the possession of Hudson’s son, according to court filings.
A federal complaint alleges that beginning from at least January 2012 and continuing until mid-2015 Tayeh and Monex NV engaged in a fraudulent scheme involving the offering of agreements, contracts or transactions in off-exchange forex on a leveraged, margined, or financed basis to retail customers who were not eligible contract participants and that do not result in actual delivery of forex within two days of the transaction date.
Defendants, who have never been registered as required with the CFTC, have engaged in more than $8 million of these illegal, off-exchange retail forex transactions, according to documents.
Hudson is alleged to have participated in the scheme.
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