It’s surprising sometimes what can escape a SAR report. For example, a Kansas couple that deposited nearly $7 million into their personal bank account between 2011-2014 allegedly avoided scrutiny by their bankers even though cash deposits exceeded $1.5 million during that time span.
Federal authorities indicted the couple, George and Agatha Enns, in late April. Prosecutors have also charged the bank president and two bank employees. The former president of Plains State Bank in Plains, Kansas, allegedly worked with the couple to launder drug money for Mexican cartels.
According to the Justice Department, James K. Friend, former bank president, has been charged with one count of money laundering conspiracy, one count of failing to file a SAR, and 29 counts of money laundering. These charges resulted from allegations that the bank failed to act even though millions of dollars were flowing through the account of the Enns.
Details in the indictment included the following:
–From Jan. 11, 2012, to Aug. 12, 2014, the Enns crossed the U.S. border to and from Mexico at least 25 times. On at least four occasions they were stopped by customs officials and found to be in possession of large amounts of cash. For instance, on July 26, 2013, they were stopped at the Columbus, N.M., port of entry carrying $317,500 in a black trash bag.
–Former bank president James K. Friend knew the Enns were bringing bulk currency from Mexico to the United States.
–Bank officials did not require the Enns to provide proof that any of the currency transported from the United States was declared at the border and did not look into the source of the currency. They did not fill a SAR report on any transactions conducted on the Enns’ account.
