https://news3lv.com/newsletter-daily/las-vegas-based-ceo-convicted-of-money-laundering-for-cartel-martin-mizrahi-cartel-southern-district-new-york-federal-court-jury-trial

LAS VEGAS (KSNV) — A Las Vegas CEO has been convicted on charges related to $8 million in bank fraud and laundering more than $4 million for fraud and illegal drugs.

A federal jury convicted Martin Mizrahi, 52, for wire fraud, bank fraud, money laundering, aggravated identity theft, and other charges following a 12-day trial, federal prosecutors said Tuesday.

Mizrahi was the CEO of LV.Net, a Las Vegas-based internet service provider for residential and commercial customers.

Prosecutors accused Mizrahi of laundering money from drug deals for people tied to a Mexican-based cartel. He would convert the money to Bitcoin and send it to anonymous cryptocurrency wallets.

He also took part in a credit card fraud scheme, running nearly $8 million in fake charges through his company. He laundered those proceeds sent to his company by wire transfer, which he also converted to cryptocurrency.

"Martin Mizrahi brazenly used his company as a front to launder millions of dollars in drug and fraud proceeds and to deceive credit card companies into processing additional millions of dollars in sham charges," Damian Williams, U.S. Attorney for the Southern District of New York, said in a statement. "The jury’s unanimous verdict sends a resounding message that individuals who steal and introduce illicit funds into the U.S. financial system will be held accountable."

Mizrahi faces up to 30 years in prison on the bank fraud charges and up to 20 years for the money laundering charges.