https://baysideoc.net/worcester-county-scammed-for-167k-guilty-plea-made-national-money-laundering-operation/

A Texas man pleaded guilty last month to international money laundering conspiracy for his role in scamming several victims, including the Worcester County Treasurer’s Office.

On July 19, Jon Briceno, 42, of Katy, Texas, pleaded guilty to conspiracy to commit money laundering. According to the U.S. Attorney’s Office, Briceno laundered more than $8.7 million in proceeds from romance and business email compromise schemes. Among his victims is the Worcester County Treasurer’s Office, which provided $167,745 to a bank account he controlled.

“The crime committed against the Worcester County Treasurer’s Office stems from a cyber-fraud incident almost four years ago, in late 2020 and early 2021,” Worcester County Chief Administrative Officer Weston Young said this week. “The incident allowed a criminal to gain access to parts of the Treasurer’s Office data system, pose as a known county vendor, and illegally acquire county funds. Inconsistencies were noted on the vendor account by county staff, leading to the discovery of the fraud.”

According to the plea agreement, from June 2020 to Feb. 20, 2024, Briceno entered into an illegal agreement with two other individuals and several co-conspirators to conduct fraud schemes that involved the use of bank accounts and shell companies to conceal transactions.

The U.S. Attorney’s Office reported that Briceno was an organizer or leader of a money laundering conspiracy that involved multiple participants throughout the nation. As part of the scheme, Briceno routinely directed co-conspirators to open bank accounts in their names or the names of shell companies, according to a news release.

Fraud proceeds deposited into those accounts were then transferred by the co-conspirators into another intermediate account. In connection with the scheme, Briceno and his co-conspirators each took a percentage of the proceeds from schemes, with Briceno often taking 10-25% of the fraud proceeds.

In one of the schemes, Briceno’s co-conspirators targeted the Worcester County Treasurer’s Office. In total, Worcester County was fraudulently convinced to provide $167,745 in funds to a bank account controlled by Briceno as a result of a business email compromise scheme in which an accounting manager received fraudulent emails directing those payments be made in response to a bill.

According to the news release, the payments were made on 12 separate occasions beginning Nov. 20, 2020 and ending Jan. 21, 2021, with amounts ranging from $16.60 to $41,471.94.

“The subsequent criminal investigation, originally led by the Worcester County Sheriff’s Office in conjunction with federal authorities, led to the arrest of two individuals,” Young said this week.

“The county has recovered approximately 80% of the loss and continues to work with federal authorities as they distribute proceeds from the sale of the seized assets purchased with the stolen funds. In addition, the county has made changes to limit outside access to our county systems and further safeguard operations in the future.”

In total, Briceno and his co-conspirators opened numerous bank accounts throughout the country to launder more than $8.7 million in proceeds they illegally obtained from victims in 14 states and six other countries, according to the news release. Briceno then used his share to purchase luxury items, invest in crypto-currency and lease office space to run a poker room.

Briceno’s Katy, Texas, home was searched in June 2022, during which time law enforcement seized numerous bank records, money order and pawn shop receipts, documents for various shell businesses, and various electronic devices containing messages and audio recordings of evidentiary value. And on Feb. 20, 2024, Briceno’s new home, also located in Katy, was searched, and he was arrested.

Briceno faces a maximum possible sentence of 20 years in prison followed by up to three years of supervised release.  His sentencing is scheduled for Oct. 24.

United States Attorney for Maryland Erek L. Barron commended the United States Secret Service and the Worcester County Sheriff’s Office for their work in the investigation. Sheriff Matt Crisafulli this week also recognized the lead investigator in the case, Detective Tom Moore.

“The case is still ongoing at this point,” he said. “I applaud Detective Moore for his diligence in helping to bring this case forward for prosecution. Detective Moore worked in conjunction with the Secret Service on this investigation. These types of investigations are lengthy and are successful with strong support from our allied partners.”

This story appears in the Aug. 2, 2024, print edition of the Bayside Gazette.