The United States Attorney for the Southern District of New York, Jay Clayton, and FBI Assistant Director in Charge of the New York Field Office, Christopher G. Raia, announced the sentencing of Hirenkumar Patel. Patel is the last of six defendants involved in an unlicensed money transmitting business that illegally moved millions between the U.S. and India. U.S. District Judge Kenneth M. Karas sentenced Patel to 21 months in prison after he pled guilty to conspiracy and operation of an unlicensed money transmitting business on September 12, 2024.
U.S. Attorney Jay Clayton stated, “The anonymous transmission of money is a linchpin of international criminal activity, whether hacking, drug dealing, sex trafficking, or terrorism.” He added that unlicensed networks like those operated by Patel are designed to support such activities.
FBI Assistant Director Christopher G. Raia remarked: “These six defendants engaged in an unregulated money transferring scheme responsible for illegally transmitting $15 million in less than a year.” He emphasized that these illicit schemes harm the economic system beyond those directly involved.
Court documents reveal that law enforcement identified a vendor on the dark web who converted cryptocurrency into cash as early as April 2021. This vendor indicated his clients included drug dealers and hackers and claimed earnings of approximately $30 million over three years through these conversions.
By February 2023, law enforcement learned this vendor used a “hawala” network to obtain cash exchanged for cryptocurrency. The defendants collected cash along the East Coast which was then mailed to customers using this network. In return, cash suppliers had their funds converted into rupees delivered to individuals in India.
Patel participated in 42 deliveries totaling more than $7.7 million out of the $15 million sent through this hawala from February to September 2023. Neither he nor his co-defendants were licensed or registered under New York or federal law for operating such a business.
Jay Clayton praised the efforts of various agencies including the FBI and U.S Postal Inspection Service during this investigation handled by Assistant U.S Attorneys Benjamin Levander and Timothy Ly from White Plains Division.
Below are details regarding each defendant’s age, convictions, and sentences:
– Rajendrakumar Patel (52): Conspiracy charges; sentenced to 27 months.
– Brijeshkumar Patel (32): Conspiracy charges; sentenced to 18 months.
– Hirenkumar Patel (40): Conspiracy charges; sentenced to 21 months.
– Naineshkumar Patel (51): Conspiracy charges; sentenced to 12 months plus one day.
– Nileshkumar Patel (33): Conspiracy charges; received probation.
– Shaileshkumar Goyani (36): Conspiracy charges; time served.
