The owner of a Kearny check-cashing business — Galaxia International Inc. — admitted filing more than $325 million in false currency transaction reports and operating and aiding and abetting an unlicensed money transmitting business, U.S. Attorney Philip R. Sellinger announced Oct. 16.
Ali Hassanein, 68, also a resident of Kearny, pleaded guilty before Chief U.S. District Judge Renée Marie Bumb in Camden federal court on Oct. 15, 2024, to an information charging him with conspiracy to cause a financial institution to file false currency transaction reports and operating and aiding and abetting the operation of an unlicensed money transmitting business.
“The Bank Secrecy Act imposes important requirements on financial institutions, including by requiring them and their executives to file accurate reports with the government concerning certain currency transactions,” Sellinger said. “These requirements play a vital role in helping law enforcement prevent, detect and stop illicit activity.
“Ali Hassanein admitted that he and Galaxia flouted these requirements, which undermined the financial system and made Galaxia an easy target for bad actors. My office will continue to work to ensure that financial institutions who shirk their obligations and facilitate illicit activity are held accountable.”
According to documents filed in this case and statements made in court:
From 2019 through February 2023, Hassanein owned and operated Galaxia International Services Inc. (Galaxia), a check casher and money service business that operated in New Jersey and other states. Under the Bank Secrecy Act and related regulations, Galaxia was required to file currency transaction reports (CTRs) for transactions involving more than $10,000 in currency.
CTRs are required to list, among other things, the location of the transactions and the names of the people and entities physically conducting the transactions. Hassanein conducted more than $325 million in reportable check cashing transactions for a conspirator in exchange for a fee.
But Hassanein caused Galaxia to file thousands of CTRs for those transactions that contained material misstatements and omissions. For example, the CTRs falsely stated that all of the transactions had occurred at Galaxia’s East Orange location – where Galaxia had a license to conduct check cashing transactions – when in fact they had occurred in Jersey City and Kearny, where Galaxia was not licensed to conduct check cashing transactions.
Business records indicate Galaxia’s local office was at 899 Newark Jersey City Turnpike in Kearny.
All of the CTRs failed to list the conspirator as the conductor of the transactions. Hassanein also aided and abetted the conspirator’s operation of an unlicensed money transmitting business.
The charges of conspiring to cause a financial institution to file false currency transaction reports and operating and aiding and abetting the operation of an unlicensed money transmitting business each carry a statutory maximum prison sentence of five years and a statutory maximum fine or the greatest of $250,000, twice the gross amount of any pecuniary gain that any persons derived from the offense, or twice the gross amount of any pecuniary loss sustained by any victims of the offense, whichever is greatest.
Sentencing is scheduled for April 2, 2025.
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Kevin A. Canessa Jr. is the editor of and broadcaster at The Observer, an organization he has served since 2006. He is responsible for the editorial content of the newspaper and website, the production of the e-Newspaper, writing several stories per week (including the weekly editorial), conducting live broadcasts on social media channels such as YouTube, Facebook, and X, including a weekly recap of the news — and much more behind the scenes. Between 2006 and 2008, he introduced the newspaper to its first-ever blog — which included podcasts, audio and video. Originally from Jersey City, Kevin lived in Kearny until 2004, lived in Port St. Lucie. Florida, for four years until February 2016 and in March of that year, he moved back to Kearny to return to The Observer full time. Click Here to send Kevin an email.
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