D.O.J. Case Against Oklahoma City Man Highlights Marijuana Finance Legal Issues

OKLAHOMA CITY– Today, VICTOR NGO, 33, of Oklahoma City, and FRIENDLY MANAGEMENT GROUP, LLC (FMG), an Oklahoma organization, pleaded guilty about a scheme to open up a savings account under false pretenses to launder profits from cannabis sales, announced Acting U.S. Attorney Robert J. Troester.

On August 2, 2021, the United States Department of Justice charged Ngo by Information with one count of making an false statement to a bank as well as FMG with one matter of structured money laundering.

According to the complaint, between May 29, 2019, and also January 22, 2020, Ngo operated Cannabless, a leading medical marijuana firm in Oklahoma. At the time, Cannabless was not completely in compliance with Oklahoma’s medical cannabis laws.

Due to Federal laws, lots of financial institutions in the USA are unwilling to accept money deposits derived from the earnings of cannabis sales. The Information declares that Ngo made use of FMG to open a checking account by incorrectly stating that FMG was a health and physical fitness company, when in fact FMG took part in a marijuana-related organization. Based on this false statement, the bank opened an account it otherwise would certainly have not opened. The Information affirms this deceitful conduct enabled Ngo as well as FMG to unlawfully access the financial system and deposit profits created by Cannabless’s sales of weed products.

The Information further alleges that Ngo made money down payments on almost a daily basis, separating or structuring the deals to quantities listed below $10,000 to stay clear of initiating the bank’s purchase reporting obligations under government law. According to the Information, FMG laundered greater than $770,000 in cannabis profits with the checking account throughout the scheme.

Today, Ngo plead guilty to making a false statement to a financial institution. As part of his plea, Ngo agreed to surrender $621,570.00 of his proceeds. At sentencing, Ngo as much as 30 years in prison as well as a prospective fine of $1,000,000.00. FMG pleaded guilty to organized money laundering. As part of its plea, FMG admitted to laundering greater than $770,000. At sentencing, FMG faces a prospective penalty of $770,000, or a quantity equal to the value of the funds associated with the money laundering transactions.

This case is the result of an investigation by the Drug Enforcement Administration, the United States Marshal’s Service, and the Oklahoma Highway Patrol. Assistant U.S. Attorney Wilson D. McGarry prosecuted the case.ide U.S. Lawyer Wilson D. McGarry prosecuted the instance.

Ngo’s case exemplifies the difficult issue facing many marijuana sellers throughout the U.S. — while various states allow medical marijuana, and some allow recreational use, many banking institutions will not allow marijuana businesses to have banking accounts, because there remain federal laws against cannabis and against banks knowingly supporting “criminal” enterprises.