Herstelling family in alleged $4B money laundering scheme

Feb 10, 2023 News

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– Accused of operating as nominees for Chinese businesses,  facilitating tax evasions

Kaieteur News – Following a three year investigation by the Special Organised Crime Unit (SOCU), an arm of the Guyana Police Force (GPF), a Herstelling, East Bank Demerara (EBD) family was slapped with close to 300 charges alleging that they laundered $4.1 billion of criminal proceeds from operating as nominees for some Chinese businesses in Guyana and also facilitating tax evasion through their business.

Those charged are Kenneth Kellawan Ramnarine, a taxi driver, and his reputed wife Yvette Nalini Saroop, a businesswoman, and Kenneth’s son, Damien Brandon Ramnarine all of Lot 274 Somerset Court, Herstelling.

The couple was arrested on Tuesday at the Cheddi Jagan International Airport (CJIA) while attempting to flee the jurisdiction for the United States of America (USA).

On Wednesday, Kenneth and his wife appeared before Chief Magistrate Ann McLennan at the Georgetown Magistrates’ Courts and then appeared before Magistrate Sunil Scarce at the Diamond/ Grove Magistrates’ Court in the company of their attorney, Bernard DaSilva.

The charges were laid indictably and as such, the couple was not required to plead to the charges after they were read to them. Both magistrates remanded them to prison and they are expected to make their next court appearance on March 6, 2023.

Notably, the younger Ramnarine, Damien was slated to appear in court on Wednesday but he was absent. However, on Thursday morning in the company of his lawyer Damien surrendered to SOCU. He was then escorted to court where he faced several counts of money laundering.

Damien appeared before the Chief Magistrate and then appeared before Magistrate Scarce. He was not required to plead to the indictable charges and both magistrates remanded him to prison. The matters were adjourned to March 17, 2023.

The Herstelling family faces a total of 286 charges. Kenneth and his son were charged jointly, while Yvette, who allegedly conspired with them, was charged separately.

The father-son duo was charged with money laundering which was laid in contravention of Section 3 (1) (a) of the Anti-Money Laundering and Countering the Financing of Terrorism Act Chapter 10:11 contrary to Section 3 (6) (a) (ii) of the said act.

A summary of all the charges is that Kenneth and his son knowingly or having reasonable grounds to believe that the cash in question, whether in whole or in part directly or indirectly represents proceeds of crime, converted or transferred the cash knowing or having reasons to believe that the said cash is the proceeds of crime with the aim of concealing or disguising the illicit origin.

As for Yvette, a summary of the charges she faces is that she conspired with her husband and his son to convert or transfer the cash in question, knowing or having reasonable grounds to believe that the cash in whole or in part directly or indirectly represents proceeds of crime, with the aim of concealing or disguising the illicit origin.

According to the Head of SOCU, Assistant Commissioner Fazil Karimbaksh, the trio conducted multiple suspicious transactions at several financial institutions in Guyana, raising concerns that they may be involved in money laundering activities.

Karimbaksh disclosed that the suspicions were primarily on the large number of unsubstantiated cash deposits made via Kenneth’s business accounts of Ken’s Trading Enterprise.

It was disclosed that the sources of funds declarations submitted to several commercial banks show that most of the deposits are attributed to sales proceeds from biodegradable food boxes sold to local businesses, particularly Chinese restaurants.

The Head of SOCU claimed that a substantial number of wire transfers, amounting to over $3.7 billion (Guyana currency) were sent to 22 companies in China under the pretext of importing raw materials to produce bio-degradable products, while other sums were disguised locally totalling over $4.1 billion.

Karimbaksh said his investigators did not find any legitimate source of these funds, which the accused wire transferred out of Guyana. As such, he stated that the family’s action suggested that they may be operating as nominees for some Chinese businesses and also facilitating tax evasion through Ken’s Trading Enterprise.

A team of SOCU investigators, which comprised several senior officers, contacted several prominent businesses in Georgetown during the course of the investigations, which commenced in August 2020, whom the accused listed on their source of fund declaration forms, and these businesses vehemently denied doing such large transactions with them. As a result, SOCU conducted several covert and overt investigations and operations, monitoring the suspects and their lifestyles until enough evidence was collected beyond a reasonable doubt. Before the charges were brought against them.

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• Cheddi Jagan International Airport (CJIA), Guyana Police Force (GPF), Herstelling, money laundering, pecial Organised Crime Unit (SOCU)

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