ICE investigation leads to multiple arrests and disrupts a money laundering scheme

NEW YORK — Federal agents arrested three Executives of a Panamanian corporation and aviation company Wednesday on charges they conspired to launder more than two million dollars of proceeds from what they thought to be a penny stock fraud scheme.  In fact, the money was provided to the defendants by an undercover law enforcement agent who posed as a criminal stock promoter as part of a sting operation.  

These arrests follow an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation (FBI), the United States Internal Revenue Service, Criminal Investigation, New York (IRS-CI) and the United States Attorney’s Office for the Eastern District of New York.

Michael J. Todd, 65, of Panama, Kenneth Laudgaard, 46, of Minnesota and James Robert Shipman Jr., 64, of Florida, used private jets and off-shore bank accounts in Panama to launder cash for an undercover FBI agent who posed as a corrupt stock promoter. In his dealings with the defendants, the undercover agent represented himself as a middleman working with corrupt stock brokers who artificially inflated prices for worthless stock in exchange for high commissions. In exchange for a 13% to 15% fee, the defendants agreed to launder $2,600,000. Immediately prior to their arrest on Wednesday, Landgaard and Shipman accepted $2,200,000 from the undercover agent, which they believed to be proceeds from the penny stock fraud.

In conversations which were recorded by law enforcement, the defendants explained in detail the measures they took to avoid detection of their money laundering scheme by law enforcement. Dodd insisted that the undercover agent download and use encryption software for online chats and voice communications. Landgaard insisted that the cash be provided in expensive Louis Vuitton duffel bags, and Shipman explained their reasoning: “You know why they do that? Because cops can’t get the authority to buy a Louis Vuitton bag, it’s too expensive … they can’t get the authorization to buy a Louis Vuitton bag. And if you think about it, it’s very smart.” Landgaard and Shipman also insisted that the undercover agent buy a “throwaway” or “burner” phone on which to speak to them about the scheme.

“As charged in the criminal complaint, these defendants agreed to transport millions of dollars of stock fraud proceeds on private jets to Panama and then engage in a series of financial transactions.  They did so with the intention of laundering the money, evading federal tax and banking laws, and lining their own pockets,” stated Kelly T. Currie, acting United States Attorney for the Eastern District of New York. “Today’s arrests have grounded these defendants, and will serve as a warning to others who are similarly inclined.  We are committed to closing fraudulent offshore safe havens and prosecuting those who seek to abuse the financial markets to enrich themselves.”