Chocron Enters Guilty Plea In Case That Tied Horsemen’s Accounts To Money Laundering

Audrey Strauss, the United States Attorney for the Southern District of New York, announced that Jose Morley Chocron pled guilty today before U.S. District Judge Jed S. Rakoff to one count of money laundering. Chocron laundered more than $500,000 in funds that had been represented to him to be the proceeds of a scheme to bribe Brazilian political officials, using a network and bank accounts to which he had access by virtue of his operation of an unlicensed money transmitting business.

U.S. Attorney Audrey Strauss said:  “Jose Chocron's black-market banking was designed to facilitate tax evasion, and was used to facilitate what he thought was the bribery of a foreign official. Unbeknownst to Chocron, the FBI had identified his network and worked quickly to dismantle it. This Office will continue to ensure the integrity of the U.S. financial system by identifying and prosecuting shadow banking operations like Chocron's.”

According to the Complaint, the Indictment, and other filings in this case:

Between May 2019 and October 2019, Chocron, working with his co-conspirators, utilized his network of contacts and bank accounts to launder funds that had been provided to him by individuals who – unbeknownst to Chocron – were working for the Federal Bureau of Investigation (“FBI”). Those individuals informed Chocron that the funds were the proceeds of bribes that had been paid to Brazilian public officials in order to obtain licenses and permits. On four occasions, Chocron accepted cash from individuals who were working for the FBI or arranged to have the cash delivered to his associates. He then arranged for the funds to be transferred to bank accounts specified by the FBI, minus a commission payment.

Chocron explained that he was able to receive large amounts of cash in the United States and arrange for those funds to be transferred to bank accounts because Chocron “ha[d] . . . people here that need cash.  They will transfer to you, because they don't want to pay taxes . . .  What do I do? I give them the money and they make a transfer to me.”  He also requested a higher commission for his services than initially offered, stating “Let's be clear, that's laundering money.”

Chocron, 61, of Spain and Venezuela, pled guilty to one count of money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. In connection with his guilty plea, Chocron also admitted that he operated an unlicensed money transmitting business, in violation of Title 18, United States Code, Section 1960.

Chocron is scheduled to be sentenced by Judge Rakoff on July 16, 2021, at 4:00 p.m.

Ms. Strauss praised the outstanding work of FBI New York's Eurasian Organized Crime Task Force.

The prosecution of this case is being overseen by the Office's Money Laundering and Transitional Criminal Enterprises Unit.  Assistant U.S. Attorneys Andrew C. Adams, Benet J. Kearney, and Sarah Mortazavi are in charge of the case.

Editor's note: The preceding press release was distributed by the United States Attorney for the Southern District of New York. Chocron was named a March 2020 indictment alongside Florida trainer Alfredo Lichoa and several others. A superseding indictment named only Lichoa, Chocron, and Schachtel. Read about that case here. Lichoa has since entered a guilty plea to a charge of money laundering conspiracy.

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Report: Florida Horseman Lichoa Receives Three-Month Jail Sentence On Money Laundering Charge

Central Florida horseman Alfredo Lichoa on Wednesday was sentenced to three months in prison after pleading guilty to violating federal money laundering laws, according to a report in Bloodhorse.com.

Lichoa, who came to the U.S. from his native Venezuela 20 years ago, worked in the Ocala area as farm veterinarian for Franks Farm and more recently was general manager for the Iadisernia family's Northwest Farms. He began training horses in 2018 and it is in that role that he got caught up in an FBI investigation that would lead to the indictment of Lichoa and four other men.

According to the original indictment, Lichoa was identified to undercover FBI agents as someone who could help launder money through a racetrack horsemen's account. In a secretly recorded FBI sting operation, Lichoa accepted $50,000 he was told came from bribes made to corrupt Brazilian politicians.

The indictments were unsealed last March, shortly after another investigation yielded more than two dozen arrests in a doping probe that included charges against trainers Jason Servis, Jorge Navarro and others. Both investigations came out of the U.S. Attorney for the Southern District of New York.

Lichoa pleaded guilty last October.

Prosecutors sought a sentence of 12 to 18 months, with half of the time allowed to be served by home detention. According to Bloodhorse.com, Judge Jed S. Rakoff may have been swayed by some of the 18 letters of support for Lichoa submitted by family members and horse industry professionals who have either worked with or done business with him.

Lichoa is to report to prison on Aug. 31, the delay being set so that he will have time to be vaccinated for COVID-19 before serving his term. Lichoa's attorney, in an appeal for home incarceration, had cited the high percentage of COVID cases in the federal prison system and suggested Lichoa was especially vulnerable because of health issues.

Read more at Bloodhorse.com

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Lichoa Enters Guilty Plea To Charge Of Money Laundering Conspiracy

Alfredo Lichoa, longtime Central Florida horseman, has entered a guilty plea to a charge of money laundering conspiracy according to federal court records. Lichoa was indicted alongside four others in March by the U.S. attorney for the Southern District of New York – the same prosecutor's office which, days earlier, had indicted more than two dozen trainers and veterinarians (including trainers Jorge Navarro and Jason Servis) on charges of drug misbranding relating to an alleged horse doping ring. Lichoa and four others were arrested on March 9, the same day the FBI executed arrest and search warrants in Florida and New York in connection with the Navarro/Servis investigation.

Additional defendants charged with money laundering conspiracy in March were Jose “Pepe” Morely Chocron; Isaac Schachtel, a licensed Thoroughbred owner from Venezuela living in Miami; Juan Carlos Balaguera-Villamizar; and Juan Marcos Matos Ruiz.

A superseding indictment filed in the case in early August charged only Lichoa, Schachtel and Chocron with one count of money laundering conspiracy. The new indictment sought forfeiture of assets the defendants may have gained as a result of their actions.

The original indictment described a scheme by the defendants to launder money purportedly from corrupt politicians in Brazil. The money was used to get preferential treatment in business deals. The scheme is alleged to have included the horsemen's accounts belonging to trainers in the South Florida area. Trainers were supposedly able to put money into the accounts and either rapidly resell a horse or rely on consistent wins by the horse to get their money back out.

The original indictment included quotes from Schachtel, who is supposed to have relied on Lichoa to guarantee the safety of funds because of “systematic administration of illicit performance enhancing drugs to the racehorses under his control,” according to federal prosecutors.

Read more about the original indictment here.

A sentencing hearing for Lichoa is set for Feb. 17, 2021 before Judge Jed S. Rakoff.

A trial date for Chocron has been set for March 30, 2021.

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