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New Jersey Business Owner Pleads Guilty to Filing Over $325 Million in False Reports and Operating Unlicensed Money Services
KEARNY, NJ – A local businessman admitted to major financial misconduct involving millions in false transactions, pleading guilty to charges in federal court.
Ali Hassanein, owner of Galaxia International Inc., faced the law's gavel on October 15, 2024, in Camden’s federal court. At 68 years old, the Kearny resident acknowledged his role in filing more than $325 million in fraudulent currency transaction reports and engaging in unlicensed money transmitting operations, as announced by U.S. Attorney Philip R. Sellinger.
From 2019 to February 2023, Hassanein's company, which operated in New Jersey and beyond, was legally obligated to file accurate currency transaction reports (CTRs) for dealings exceeding $10,000. These reports should detail transaction locations and identify individuals involved. However, Hassanein consistently misreported that these transactions occurred at Galaxia’s licensed East Orange location, whereas many took place in unlicensed sites in Jersey City and Kearny. Moreover, the reports failed to disclose the actual conductor of the transactions—a conspirator who also ran an unlicensed money transmitting business, with Hassanein's assistance.
“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. 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.” - U.S. Attorney Philip R. Sellinger.
The crimes of conspiring to submit false reports to financial institutions and aiding unlicensed money transmitting each carry potential penalties of up to five years in prison and a maximum fine up to the greater of $250,000, twice the profit made, or twice the loss suffered by victims. Hassanein’s sentencing is scheduled for April 2, 2025.
The investigation leading to Hassanein’s plea was supported by various agencies, including the IRS – Criminal Investigation, the DEA, and the FDIC – Office of Inspector General. The case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation, aimed at dismantling high-level criminal organizations threatening the U.S.
The prosecution team includes Assistant U.S. Attorneys Marko Pesce, Fatime Cano of the Economic Crimes Unit, and Peter A. Laserna of the Asset Recovery and Money Laundering Unit, all based in Newark.
