In a significant development, the US Justice Department (DoJ) has apprehended an individual linked to the prestigious Cartier jewelry lineage on charges of orchestrating a complex scheme to launder funds derived from drug trafficking activities, utilizing the popular cryptocurrency Tether (USDT).
Maximilien de Hoop Cartier, a direct descendant of Louis Cartier, the renowned founder of the esteemed luxury brand known for its exquisite watches, necklaces, and bracelets, was arrested in Miami for his alleged involvement in collaborating with a Colombian drug cartel.
Accompanied by five Colombian nationals, Cartier purportedly orchestrated the importation of 100 kilograms of cocaine, along with orchestrating the laundering of hundreds of millions of dollars, primarily through over-the-counter (OTC) USDT transactions. Shockingly, their illicit activities facilitated the laundering of 14.5 million USDT before law enforcement intervened.
While Cartier is currently detained in a Miami correctional facility, his co-conspirators find themselves incarcerated in Colombian prisons.
The intricate nature of Cartier’s illicit activities involved the establishment of shell companies, where he deceitfully portrayed them as entities engaged in software and technology ventures to financial institutions. Subsequently, these companies’ accounts were exploited, serving as unlicensed channels for money transmission.
Through a complex web of USDT, fiat currencies, including dollars and pesos, Cartier successfully laundered vast sums of illicit proceeds derived from criminal enterprises.
Despite Cartier’s French upbringing, his citizenship ties to Argentina. He faces a litany of charges, including money laundering, conspiracy to commit money laundering, transacting in property derived from illegal activities, and operating an unlicensed money transmitter.
Verdicts
CARTIER, 57, an Argentinian citizen who has resided France, is charged with one count of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison; one count of money laundering, which a maximum sentence of 20 years in prison; one count of bank fraud, which a maximum sentence of 30 years in prison; one count of engaging in a monetary transaction in property derived from specified unlawful activity, which carries a maximum sentence of 10 years in prison; and one count of operating of an unlicensed money remitting business, which carries a maximum sentence of five years in prison.
ZULUAGA DUQUE, 61, a Colombian citizen, is charged with one count of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison, and one count of conspiring to import five kilograms or more of cocaine into the U.S., which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
LOPEZ ORTIZ, 42, a Colombian citizen, is charged with one count of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison, and one count of conspiring to import five kilograms or more of cocaine into the U.S., which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
ESTRADA ECHEVERRY, 38, a Colombian citizen, is charged with one count of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison.
ALEXANDER AREIZA CEBALLOS, 45, a Colombian citizen, is charged with one count of conspiring to import five kilograms or more of cocaine into the U.S., which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
ADRIAN AREIZA CEBALLOS, 44, a Colombian citizen, is charged with one count of conspiring to import five kilograms or more of cocaine into the U.S., which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum penalties in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
The allure of USDT for criminal activities stems from its seamless integration with traditional financial systems, offering swift and permissionless transactions across various blockchain networks. For drug syndicates accustomed to the perils of physical cash transfers and the uncertainties of bank transfers, USDT presents an enticing solution with its instantaneous and irreversible settlement features.