An Ocean County man was sentenced today to 21 months in prison for owning and operating an unlicensed money transmitting business, U.S. Attorney Craig Carpenito announced.
According to authorities, Yisroel Malamud, 54, of Lakewood, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with running an unlicensed money transmitting business.
Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Between January 2010 and May 2013, Malamud maintained a retail storefront in Lakewood under the name “Beepers Plus.” Malamud received money from members of the public, deposited the funds into bank accounts that he maintained in the name of different entities, and then transmitted the money – determined to be more than $6 million – from those bank accounts to third-parties within the United States in accordance with the customers’ instructions, charging the customers a fee for this service.
New Jersey law provides that the operation of an unlicensed money transmission business is punishable as a felony. Federal law requires anyone conducting such a business to register the business with the Secretary of the Treasury.
Officials said Malamud did not possess and failed to obtain a money transmitting license, nor did he register with the Secretary of the Treasury.
In addition to the prison term, Judge Thompson sentenced Malamud to three years of supervised release. Forfeiture will be determined at a later date.