Great Neck man charged in scheme to use Manhattan jewelry companies as fronts for illegally transmitting cash

Five men, including a Great Neck resident, who all worked in New York City’s Diamond District, have been charged with illegally processing more than $600 million through unlicensed money transmitting businesses, federal prosecutors in New Jersey said.

Youssef Janfar, 57, of Devon Road, along with four other co-defendants,  all of Edison, New Jersey, were each charged last week with one count of operating and aiding and abetting the operation of an unlicensed money transmitting business.

They were each released on $500,000 unsecured bond, court papers show and if convicted face up to five years in prison and a fine of $250,000.

Prosecutors said Thursday that Janfar operated several purported companies in the Diamond District, including Rodeo of New York — doing business as Sarah Jewels. He worked with the other men, who also ran purported jewelry companies, to operate an unlicensed money transmitting business.

Peter Driscoll, Janfar's New Jersey-based defense attorney, did not respond to a request for comment.

Prosecutors contend the diamond, gold and jewelry companies operated by the five men in Manhattan's Diamond District were fronts to conduct hundreds of millions of dollars in illegal financial transactions for customers.

The transactions include converting cash to checks or wire transfers — in exchange for substantial fees, charging documents state, sometimes moving millions of dollars in cash.

Janfar collected cash, gave it to the other men, who deposited the cash into bank accounts, then sent the money to Janfar’s bank accounts, minus a percentage for their service, IRS Special Agent Avra Rubin said in charging documents. "In addition, the communications show that the defendants created false invoices and broke up the transactions between each of their business entities to cover up the scheme."

None of their companies were registered as money transmitting businesses with New York, New Jersey, or with the Financial Crimes Enforcement Network.

By Robert Brodsky

robert.brodsky@newsday.com@BrodskyRobert

Robert Brodsky is a breaking news reporter who has worked at Newsday since 2011. He is a Queens College and American University alum.