Four individuals have been indicted in connection with a large-scale conspiracy to commit bank fraud and money laundering, involving more than $128 million in criminal proceeds. U.S. Attorney Roger B. Handberg announced the unsealing of the indictment on January 14, 2025, which charges Daniel Liburdi, 35, of Miami, Joseph Scotto, 44, of Bay Shore, NY, Gregory Walker, 43, of Ontario, Canada, and Frank Carbone III, 35, of Orlando, with conspiracy to commit bank fraud and conspiracy to commit money laundering.
Liburdi and Carbone III are also charged with bank fraud. Each charge of bank fraud or conspiracy to commit bank fraud carries a maximum penalty of 30 years in federal prison, while the conspiracy to commit money laundering charge carries a maximum penalty of 20 years.
The indictment details how the defendants allegedly conspired to submit fraudulent applications to U.S. financial institutions to obtain merchant processing accounts using stolen personal information. These applications, made under false pretenses, allowed the conspirators to accept credit and debit card payments for an e-commerce business that employed high-risk and unethical sales tactics.
By using the private personal information of unsuspecting individuals, the conspirators shielded themselves from liability and risk, exploiting the financial institutions’ reliance on honest disclosures. Through this operation, the group is accused of processing over $128 million in illicit proceeds.
The indictment further charges the defendants with conspiring to launder the criminal proceeds. The defendants allegedly used the money from their bank fraud operation to pay for promotional services, funneling the proceeds through accounts they controlled.
As part of the case, the U.S. government has also moved to seize three properties in Miami Beach and one in the U.S. Virgin Islands, which are believed to be tied to the proceeds of the fraudulent scheme. Additionally, the government is seeking a forfeiture of $128,144,908.66, representing the amount of criminal proceeds generated through the scheme.
The investigation was a collaborative effort between Homeland Security Investigations (Tampa), the Internal Revenue Service – Criminal Investigation (Tampa), and additional agencies in Miami, New York, and Pasco County. Assistant United States Attorney Adam J. Duso will prosecute the case.
Massive $128 Million Bank Fraud and Money Laundering Operation Uncovered in Florida
