Man Structured $156,000 in Cash Deposits to Avoid Reporting Requirements
20 LAWFUEL – The Law News Network – The United States Attorney’s Office for the Northern District of California announced that Yogesh K. Gandhi was sentenced late last Friday afternoon to 2 years in prison, and ordered to pay a $4,000 fine for unlawfully structuring currency transactions. According to the plea agreement, Mr. Gandhi admitted that he structured 18 cash deposits for a total of $156,000 to avoid having the bank prepare and submit Currency Transaction Reports (“CTR”) to the IRS. Financial institutions are required to submit these reports when a cash deposit of more than $10,000 is made by a customer. Federal law prohibits structuring multiple cash deposits to avoid this reporting requirement.
Mr. Gandhi, 55, of Pleasant Hill, California, pleaded guilty on June 23, 2005, to 4 counts of unlawful structuring of currency transactions in violation of 31 U.S.C. §5324(a)(3). Each of those counts is described below:
According to the plea agreement, Mr. Gandhi admitted that on October 25, 2001, and October 26, 2001, he structured five cash deposits of $9,000 each at Citibank Federal Savings Bank in Contra Costa County to avoid the Currency Transaction Reports (“CTR”) which the bank was required to prepare and submit to the Internal Revenue Service if he had made one cash deposit of $45,000.
Mr. Gandhi admitted that on January 8, 2002, he structured two cash deposits of $9,000 each at Citibank Federal Savings Bank in Contra Costa County to avoid the CTR which the bank was required to prepare and submit to the Internal Revenue Service if he had made one cash deposit of $18,000.
Mr. Gandhi admitted that on January 29, 2002, he structured two cash deposits of $9,000 each and one cash deposit of $3,000 at Citibank Federal Savings Bank to avoid the CTR which the bank was required to prepare and submit to the Internal Revenue Service if he had made one cash deposit of $21,000.
Mr. Gandhi admitted that on February 20, 2002, he structured eight cash deposits of $9,000 each at Citibank Federal Savings Bank to avoid the CTR which the bank was required to prepare and submit to the Internal Revenue Service if he had made one cash deposit of $72,000. Mr. Gandhi admitted that to structure these cash deposits and avoid suspicion he had his nephews make the cash deposits at several different Citibank Federal Savings Bank branches throughout Contra Costa County.
Mr. Gandhi was indicted by a federal grand jury on January 4, 2005. He was charged with 5 counts of unlawful structuring of currency transactions in violation of 31 U.S.C. §5324(a)(3), which prohibits structuring multiple cash deposits to avoid the bank’s preparation and filing with the IRS of a Currency Transaction Report (CTR), which must be prepared by a financial institution when a cash deposit of more than $10,000 is made by a customer.
The sentence was handed down by U.S. District Court Judge Martin J. Jenkins following a guilty plea on 4 counts in violation of of unlawful structuring of currency transactions in violation of 31 U.S.C. §5324(a)(3). Judge Jenkins also sentenced the defendant to a 3 year period of supervised release. The defendant will begin serving the sentence on April 13, 2006.
The prosecution is the result of a 2 year investigation by Special Agents of Internal Revenue Service – Criminal Investigation, Immigration and Customs Enforcement and the Drug Enforcement Administration. Thomas Moore is the Assistant U.S. Attorney who prosecuted the case with the assistance of Kathy Tat.
