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Date: 12-03-2018
Case Style:
United States of America v. Michael W. Kwasnik
Case Number: 1:17-cr-00052-RBK
Judge: Robert B. Kugler
Court: United States District Court for the District of New Jersey (Camden County)
Plaintiff's Attorney: Deborah Prisinzano Mikkelsen and Jason Richardson
Defendant's Attorney: Richard Klineburger
Description:
Camden, NJ - Former New Jersey Lawyer Admits Role In Money Laundering Scheme
A former New Jersey lawyer today admitted his role in a money laundering scheme.
Michael W. Kwasnik, 49, of North Miami Beach, Florida, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to Count 12 of a superseding indictment, charging him with money laundering.
According to documents filed in this case and statements made in court:
Kwasnik was previously associated with a law firm, Kwasnik, Rodio, Kanowitz and Buckley P.C. – and its successor firm, Kwasnik, Kanowitz and Associates P.C. – with offices in Cherry Hill, New Jersey, and Philadelphia. His father, and co-defendant, William M. Kwasnik, of Marlton, New Jersey, owned and operated an insurance company, Abby Grant, with offices in Cherry Hill and Lakewood, New Jersey.
In April 2011, Michael Kwasnik induced a client to establish an irrevocable family trust to settle his mother’s estate, with promises that any money deposited in the trust would not be invested, but rather held for the client’s benefit. With the client’s consent, Michael Kwasnik established the trust and named himself as the trustee. Based on Michael Kwasnik’s promises, the client gave Michael Kwasnik $125,774, which the client received after his mother’s death, to deposit in the trust account. Michael Kwasnik deposited the money into the trust account and the next day, transferred $125,000 to Abby Grant’s bank account, and then to the Kwasnik, Rodio, Kanowitz and Buckley P.C. bank account, without the client’s knowledge or permission. Michael Kwasnik admitted that he did so to conceal and disguise the source of the money and that it was the proceeds of a mail fraud or wire fraud scheme.
The money laundering offense to which Michael Kwasnik pleaded guilty carries a maximum penalty of 20 years in prison and a $500,000 fine, or twice the gross gain or loss from the offense. Under terms of the plea agreement, he must also forfeit $125,000 and pay restitution.
The charges against William Kwasnik remain pending, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Michael T. Harpster, Philadelphia Division, and special agents of IRS Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, Newark Division, with the investigation leading to today’s guilty plea.
Charges:
18:1343, and Title 18, USC, Section 2 WIRE FRAUD (DOF 4/6/11, 9/28/11, 10/14/11)
(1-3)
18:1343, and Title 18 USC, Section 2 WIRE FRAUD (DOF 4/6/2011, 9/28/11, 10/14/11)
(1s-3s)
18:1341, and Title 18, USC, Section 2 MAIL FRAUD (DOF 4/12/11, 2/26/2014)
(4-5)
18:1341, and Title 18, USC, Section 2 MAIL FRAUD (DOF 4/12/11, 11/11/13, 2/26/14)
(4s-6s)
18:1956(h) CONSPIRACY TO COMMIT MONEY LAUNDERING (DOF 10/2010 - 8/2011)
(6)
18:1956(a)(1)(B)(i) and Title 18, USC, Section 2 MONEY LAUNDERING (DOF 3/24/11, 3/25/11, 4/14/11, 4/21/11, 5/9/11, 8/2/11)
(7-13)
18:1956(h) CONSPIRACY TO COMMIT MONEY LAUNDERING (DOF 10/10 - 8/2011)
(7s)
18:1956(a)(1)(B)(i) and Title 18, USC, Section 2 MONEY LAUNDERING (DOF 3/25/11, 4/14/11, 4/21/11, 5/9/11, 8/2/11)
(8s-11s)
18:1956(a)(1)(B)(i) and Title 18, USC, Section 2 MONEY LAUNDERING (DOF 3/25/11, 4/14/11, 4/21/11, 5/9/11, 8/2/11)
(12s)
18:1956(a)(1)(B)(i) and Title 18, USC, Section 2 MONEY LAUNDERING (DOF 3/25/11, 4/14/11, 4/21/11, 5/9/11, 8/2/11)
(13s-14s)
18:1957 and Title 18, USC, Section 2 TRANSACTING IN CRIMINAL PROCEEDS (DOF 4/15/11, 4/21/11, 8/26/11, 9/9/22, 9/12/11, 9/19/11, 10/17/11)
(14-21)
18:1957 and Title 18, USC, Section 2 TRANSACTING IN CRIMINAL PROCEEDS (DOF 4/15/11, 4/21/11, 8/26/11, 9/9/11, 9/12/11, 9/19/11, 10/17/11)
(15s-22s)
Outcome: 11/28/2018 88 Minute Entry for proceedings held before Judge Robert B. Kugler:Change of Plea Hearing as to MICHAEL KWASNIK held on 11/28/2018, Plea entered by MICHAEL KWASNIK (1): Guilty Count 12s. Sentencing hearing set for 3/11/2019 at 10:00 AM in Camden - Courtroom 4D before Judge Robert B. Kugler. Consent judgment and order of forfeiture executed and filed.Ordered bail continued as previously set. (Court Reporter CARL NAMI, JR.) (lm) (Entered: 11/28/2018)
11/28/2018 89 PLEA AGREEMENT as to MICHAEL KWASNIK. (lm) (Entered: 11/28/2018)
11/28/2018 90 APPLICATION for permission to enter Plea of guilty as to MICHAEL KWASNIK. (lm) (Entered: 11/28/2018)
11/28/2018 91 CONSENT JUDGMENT AND ORDER OF FORFEITURE, Money Judgment in favor of USA and against defendant MICHAEL KWASNIK in the amount of $125,000.00 (Finance Notified). Signed by Judge Robert B. Kugler on 11/28/2018. (js) (Entered: 11/29/2018)
Plaintiff's Experts:
Defendant's Experts:
Comments: