This week, it was announced that 59-year-old Subhash Jay of South San Francisco had pleaded guilty to operating an unlicensed money transmitting business and filing a false tax return. The defendant admitted to operating a money transmitting business known as Force Services Inc., without the required state or federal licenses. The defendant admitted that from 2010 through 2014, he caused two domestic bank accounts held in the name of Force Services to receive international wire transfers from a client.
The wire transfers had an aggregate value of at least $4,515,236. Most of the funds were forwarded to the client. However, the defendant kept $817,734 as commissions. Jay filed corporate tax returns for Force Services from 2010 through 2014. Those returns failed to report the commissions as gross receipts. The defendant also filed individual income tax returns for the same years and failed to report the commissions as income.
Jay is scheduled to be sentenced on July 18, 2018. At that time, he will face a maximum sentence of five years in prison. Additional details can be found here.
