A California man, Charles Singleton, 65, from Los Angeles, has been sentenced to 41 months in prison for his role in a money laundering scheme. The case was announced by Acting U.S. Attorney Vikas Khanna. Singleton had earlier pleaded guilty to conspiring to launder money obtained through fraudulent online activities.
According to the court documents, Singleton was involved in a scheme between September 2018 and August 2020 that targeted businesses and individuals. He helped criminals move money stolen through a type of fraud known as a “business email compromise” (BEC). This type of cybercrime tricks people into wiring large amounts of money to fraudulent accounts by hacking or faking email communications. These scams are particularly dangerous because they appear to come from trusted sources, making it easy for victims to fall into the trap.
How the Fraud Worked
Singleton was not working alone—he was part of a network of conspirators who carried out this crime. The scheme worked by hacking or “spoofing” real email accounts to deceive people into transferring large sums of money into bank accounts controlled by fraudsters. These emails often appeared to come from legitimate business partners or employers, making them difficult to detect as fake.
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To help the criminals move the stolen money, Singleton opened multiple business bank accounts under companies he controlled. Once the stolen money was deposited into these accounts, he and his associates would quickly withdraw or transfer the funds to other bank accounts. This process made it harder for authorities to trace the origin of the money.
In one particular instance, Singleton signed a fake contract with one of his conspirators to justify a $70,000 wire transfer. This fraudulent contract was just one example of the many deceptive tactics he used to disguise the illegal activity.
The Punishment for His Actions
After pleading guilty to his crimes, Singleton faced serious legal consequences. U.S. District Judge Madeline Cox Arleo sentenced him to 41 months in federal prison. But the punishment didn’t end there.
In addition to the prison time, Singleton will have to serve three years of supervised release after completing his sentence. This means law enforcement will monitor his activities closely to ensure he does not engage in any further illegal activities.
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The judge also ordered Singleton to forfeit over $1.1 million, which was the amount he gained from his involvement in the scheme. Furthermore, he was ordered to pay $1,469,003 in restitution to compensate the victims who lost their money due to the fraud.
The case was investigated by special agents from the FBI’s Woodland Park Office in New Jersey, led by Acting Special Agent in Charge Terence G. Reilly. The prosecution was handled by Assistant U.S. Attorney Farhana C. Melo of the Economic Crimes Unit in Newark.
This case highlights the serious consequences of participating in financial crimes. While cybercriminals may believe they can hide behind technology, law enforcement agencies are constantly working to track them down and hold them accountable.
