DRUG DEALING AUTHOR BRUCE BAGLEY ENTERED GUILTY PLEA Professor of International Studies Pleads Guilty To Money Laundering

Prof. Bruce Bagley Participated in the International Laundering of Over $2 Million Derived from Venezuelan Bribery and Corruption

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that BRUCE BAGLEY pled guilty today before U.S. District Judge Jed S. Rakoff to two counts of money laundering.  BAGLEY used bank accounts in his name and in the name of a company he created in Florida to launder over $2 million in proceeds of a Venezuelan bribery and corruption scheme into the United States.

U.S. Attorney Geoffrey S. Berman said: “Bruce Bagley, a college professor and author, went from writing the book on crime – literally writing a book on drug trafficking and organized crime – to committing crimes.  Professor Bagley admitted today to laundering money for corrupt foreign nationals – the proceeds of bribery and corruption, stolen from the citizens of Venezuela.  Bagley now faces the possibility of a long tenure in prison.”

SUMMARY OF INDICTMENT

According to the Indictment and other filings in the case: In or about November 2016, BRUCE BAGLEY, a professor of international studies with publication credits including the book Drug Trafficking, Organized Crime, and Violence in the Americas Today, opened a bank account (“Account-1”) on behalf of a company (“Company-1”) that BAGLEY owned and controlled.  Between in or about November 2016 and in or about November 2017, Account-1 had minimal activity.  In or about November 2017, Account-1 began receiving monthly deposits of hundreds of thousands of dollars from bank accounts located in Switzerland and the United Arab Emirates (the “Overseas Accounts”).  Each month, BAGLEY would receive a deposit of approximately $200,000 from one of the Overseas Accounts into Account-1.  Thereafter, he would withdraw approximately 90 percent of the funds in the form of a cashier’s check, payable to an account held by another individual (“Individual-1”).  BAGLEY would send the remainder of the funds to his personal account.  Between in or about November 2017 and in or about October 2018, Account-1 received approximately $2.5 million from the Overseas Accounts.

The Overseas Accounts belonged to a Colombian individual (“Individual-2”).  In or about December 2018, Individual-1 had a conversation with BAGLEY regarding the fact that BAGLEY was moving Individual-2’s funds into the United States and that the funds represented the proceeds of foreign bribery and embezzlement stolen from the Venezuelan people.  Nevertheless, in or about December 2018, BAGLEY created a new bank account (“Account-2”) in order to transfer additional money belonging to Individual-2.  BAGLEY continued to receive hundreds of thousands of dollars from the Overseas Accounts after opening Account-2.  BAGLEY transferred the majority of these funds to Individual-1 but retained a commission for his services.

BAGLEY, 73, of Coral Gables, Florida, pled guilty to two counts of money laundering, each of which carries a maximum sentence of 20 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

BRUCE BAGLEY,                                19 Cr.

                Defendant.         – x           9 CRIM

                                SEALED INDICTMENT

COUNT ONE

(Conspiracy to Commit Money Laundering)

The Grand Jury charges:

Overview of the Scheme

                1 . From in or about November 2017, up until in or about

April 2019, BRUCE BAGLEY, the defendant, and others,

participated in a conspiracy to launder proceeds of a Venezuelan

bribery and corruption scheme into the United States . As part of

this conspiracy, BAGLEY agreed to and did receive approximately

fourteen deposits from bank accounts in Switzerland and the

United Arab Emirates, totaling $3 million, which funds BAGLEY

and others believed to be derived from graft and corruption in

connection with public works projects in Venezuela. After

receiving these funds into bank accounts BAGLEY controlled,

BAGLEY transferred the majority of the funds into the bank accounts of a co—conspirator to conceal the nature, source, and ownership of the funds.

2. In or about 2005, BRUCE BAGLEY, the defendant, incorporated a company (“Company—I”) in Florida and listed himself and his spouse as the officers and directors. Company—I had little activity between 2005 and 2016. The Florida

Department of State administratively dissolved Company—I in 2017 due to failure to file an annual report.

3. In or about November 2016, BRUCE BAGLEY, the defendant, opened a bank account on behalf of Company—I (the “Company—I Account”) at a bank in Weston, Florida (“Bank—I”)  BAGLEY listed himself as the President of Company—I in the  account opening documents .

4.  The Company—I Account had minimal activity until in or about November 2017. At that time, the Company—I Account began receiving monthly deposits of approximately $200, 000 from an account in the United Arab Emirates held in the name of a purported food company (the “Food Company”) 

5              . Upon receiving each deposit into the Company—I  Account, BRUCE BAGLEY, the defendant, would follow a set pattern. BAGLEY and another individual (“Individual—I”) would visit Bank—I together. At Bank—I, BAGLEY would withdraw approximately ninety percent of the deposited funds in the form of a cashier’s check payable to a company controlled by Individual—I (“Company—2”). BAGLEY would then wire the remaining funds to a personal account held in BAGLEY’s name.

6.  Between in or about November 2017 and in or about February 2018, BRUCE BAGLEY, the defendant, through the Company— 1 Account, received approximately four deposits from the Food Company totaling approximately $800, 000. BAGLEY withdrew approximately $720,000 in cashier’s checks payable to Company—2 and wired approximately $80,000 to his personal account.

 Beginning in or about March 2018, the Company—I Account began receiving monthly deposits from a Swiss bank account held in the name of a wealth management firm located in the United Arab Emirates (the “Wealth Management Firm”). Between in or about March 2018 and in or about August 2018, the Company— 1 Account received approximately eight deposits from the Wealth Management Firm, totaling approximately $1.7 million dollars. In total, BRUCE BAGLEY, the defendant, withdrew approximately $1. 1 million in cashier’ s checks from the Company—I Account, payable to Company—2, and wired approximately $92, 000 to his personal account.

8. In or about October 201B, Bank—I closed the Company-I Account due to suspicious activity. 

9. The accounts associated with the Food Company and the Wealth Management Firm belong to and are controlled by a

Colombian individual ( ” Individual—2′ ) . During the period of the conspiracy, BRUCE BAGLEY, the defendant, and Individual—I discussed the fact that they were moving funds on behalf of Individual—2 and that the funds represented the proceeds of foreign bribery and embezzlement stolen from the Venezuelan people. Nevertheless, BAGLEY continued to receive and transfer money on behalf of Individual —2, for which BAGLEY received over $100, 000. Additionally, in order to conceal the nature, source, and control of the funds, BAGLEY entered into multiple sham contracts purporting to justify the transfer of money into his account in the course of the money-laundering conspiracy.

10. In or about December 2018, BRUCE BAGLEY, the defendant, provided electronic wire transfer information for a new bank account to Individual—I and Individual—2 to facilitate the transfer of Individual—Ys funds into the United States.

This account was held in BAGLEY’ s name at a bank located in

Florida (the “Bagley Account”) . On or about January 9, 2019, the Bagley Account received approximately $250, 000, which funds individual—I had previously represented to BAGLEY to have derived from bribery and public corruption in Venezuela. Upon receiving this wire deposit, BAGLEY, accompanied by Individual— 1, withdrew a cashier’ s check in the amount of approximately $230, 000 payable to Company-2; BAGLEY retained the balance of these funds as a commission for his services.

11. On or about February 20, 2019 r approximately $224, 000 was sent to the Bagley Account, which funds were represented by law enforcement to BAGLEY to have derived from bribery and public corruption in Venezuela. Upon receiving the wire deposit, BAGLEY withdrew a cashier’ s check in the amount of approximately $180, 000 payable to Company—2 and retained the rest.

12. The funds involved in several of the wire transactions on behalf of Individual—2 and Company—2, including the January 2019 transaction and the February 2019 transaction, passed through the Southern District of New York, before being deposited into the Company—I Account or the Bagley Account .

Statutory Allegations

13. From at least in or about November 2017, up to and including in or about April 2019, in the Southern District of New York and elsewhere, BRUCE BAGLEY, the defendant, and others known and unknown, willfully and knowingly did combine, conspire, confederate, and agree together and with each other to engage in money laundering offenses, in violation of Title 18, United States Code, Sections 1956 (a) (1) (B) (i) , (a) (2) (B) and 1957 (a) .

14. It was a part and an object of the conspiracy that BRUCE BAGLEY, the defendant, and others known and unknown, knowing that the property involved in certain financial transactions represented the proceeds of some form of unlawful activity, would and did conduct and attempt to conduct such financial transactions, which in fact involved the proceeds of specified unlawful activity, to wit: (i) transportation of stolen goods, securities, and moneys in interstate commerce, in violation of Title 18, United States Code, Section 2314; and (i i) offenses against a foreign nation involving bribery of a public official, and the misappropriation, theft, and embezzlement of public funds by and for the benefit of a public official, as provided by Title 18, United States Coder Section 1956 (c) (7) (B) (iv) , knowing that the transaction was designed in whole or in part to conceal and disguise the nature, the location, the source, the ownership, and the control of the proceeds of specified unlawful activity, in violation of Title 18, United States Code, Section 1956 (a) (1) (B) (i) .

15.          It was a further part and an object of the conspiracy that BRUCE BAGLEY, the defendant, and others known and unknown, transported, transmitted, and transferred, and attempted to transport, transmit, and transfer, a monetary instrument and funds from a place in the United States to and through a place outside the United States, and to a place in the United States from and through a place outside the United States, knowing that the monetary instrument and funds represented the proceeds of some form of unlawful activity, and knowing that the transaction was designed in whole or in part to conceal and disguise the nature, the location, the source, the ownership, and the control of the proceeds of specified unlawful activity, to wit : (i) transportation of stolen goods , securities, and moneys in interstate commerce, in violation of Title 18, United States Coder Section 2314; and (i i) offenses against a foreign nation involving bribery of a public official, and the misappropriation, theft, and embezzlement of public funds by and for the benefit of a public official, as provided by Title 18, United States Code, Section 1956 (c) (7) (B) (iv) in violation of Title 18, United States Code, Section 1956 (a) (2) (B) (i) .

16.          It was a further part and an obj ect of the conspiracy that BRUCE BAGLEY, the defendant, and others known and unknown, within the United States, in an offense involving and affecting interstate and foreign commerce, knowingly would and did engage and attempt to engage in monetary transactions in criminally derived property of a value greater than $10, 000 that was derived from specified unlawful activity, to wit, (i) transportation of stolen goods, securities, and moneys in interstate commerce, in violation of Title 18, United States Code, Section 2314; and (i i) offenses against a foreign nation involving bribery of a public official, and the misappropriation, theft, and embezzlement of public funds by and for the benefit of a public official, as

provided by        Title       18,          United  States   Code,    Section

1956 (c) (7) (B) (iv)           in violation of Title 18, United States Code,

Section 1957 (a) 

(Title 18, United States Code, Section 1956 (h). )

COUNT TWO

(Money Laundering)

The Grand Jury further charges:

17           . The allegations contained in paragraphs 1 through 12 of this Indictment are hereby repeated, realleged, and incorporated by reference, as if fully set forth herein.

18           . In or about January 2019, in the Southern District of New York and elsewhere, BRUCE BAGLEY, the defendant r with the intent to conceal and disguise the nature, location, source, ownership, and control of property believed to be the proceeds of specified unlawful activity, knowingly did conduct and attempt to conduct a financial transaction involving property represented to be the proceeds of specified unlawful activity, to wit: (i) transportation of stolen goods, securities, and moneys in interstate commerce, Title 18, United States Coder Section 2314; and (i i) offenses against a foreign nation involving bribery of a public official, and the misappropriation, theft, and embezzlement of public funds by and for the benefit of a public official, as provided by Title 18,

United States Code, Section 1956 (c) (7) (B) (iv) 

(Title 18, United States Code, Sections 1956 (a) (3) (B) and 2. )

                THREE  

(Money Laundering)

The Grand Jury further charges:

19 . The allegations contained in paragraphs 1 through 12 of this Indictment are hereby repeated, realleged, and incorporated by reference, as if fully set forth herein.

20 . In or about February 2019, in the Southern District of New York and elsewhere, BRUCE BAGLEY, the defendant, with the intent to conceal and disguise the nature, location, source, ownership, and control of property believed to be the proceeds of specified unlawful activity, knowingly did conduct and attempt to conduct a financial transaction involving property represented to be the proceeds of specified unlawful activity, to wit: (i) transportation of stolen goods, securities, and moneys in interstate commerce, Title 18, United States Code, Section 2314; and (i i) offenses against a foreign nation involving bribery of a public official, and the misappropriation, theft, and embezzlement of public funds by and for the benefit of a public official, as provided by Title 18,

United States Code, Section 1956 (c) (7) (B) (iv) 

(Title 18, United States Code, Sections 1956 (a) (3) (B) and 2.)

FORFEITURE ALLEGATION

21. As a result of committing one or more of the offenses alleged in Counts One, Two, and Three of this Indictment, BRUCE BAGLEY, the defendant, shall forfeit to the United States, pursuant to Title 18, United States Code, Section 982 (a) (1) , any and all property, real and personal, involved in said offenses, or any property traceable to such property, including but not limited to a sum of money in United States currency representing the amount of property involved in said offenses.

Substitute Asset Provision

22 . If any of the above described forfeitable property, as a result of any act or omission of the defendant:

 Cannot be located upon the exercise of due diligence.

b.            Has been transferred or sold to, or deposited with, a third person;

c.             Has been placed beyond the jurisdiction of the Court ;

d.            Has been substantially diminished in value; or Has been commingled with other property which cannot be subdivided without difficulty; it is the intent of the United States, pursuant to Title 21, United

States Code, Section 853 (p) and Title 28, United States Code, Section 2461           to seek forfeiture of any other property of the defendant up to the value of the above forfeitable property.

BAGLEY is scheduled to be sentenced by Judge Rakoff on October 1, 2020, at 4:00 p.m.

The prosecution of this case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit.  Assistant United States Attorneys Thane Rehn and Sheb Swett are in charge of the prosecution.

Dr. Bruce Bagley often testified in corruption trials across America

OKLAHOMA: The defense called Dr. Bruce Bagley, an expert in international drug trafficking, to the stand Thursday afternoon.