A 39-year-old Indian-origin business owner in the US has pleaded guilty to conspiring to launder money for a marijuana dealer and faces up to 20 years in prison and a fine of USD 500,000.
Krishen Sauble Iyer, owner of the insurance company Health Shield, knew the person identified only as SV, a marijuana trafficker when he decided to work with him, US Attorney Phillip A Talbert said.
The two agreed that SV would transfer the drug proceeds to Health Shield, and those funds would then be paid back to SV to make the drug proceeds appear to be legitimate salary payments, according to court documents.
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Iyer issued two Form 1099s to SV which claimed that the business paid him USD 111,952 in 2013 and USD 164,000 the next year, Talbert was quoted as saying by the Fresno Bee.
This gave the illusion of legitimate salary payments. Iyer received commission for transferring the money.
Iyer is scheduled to be sentenced on April 24 in which he will face a maximum of 20 years in prison and a USD 500,000 fine.
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