Crimeless Warrant Imperils Evidence In Check Cashing Case

Law360 (September 10, 2019, 10:14 PM EDT) -- A magistrate judge in New York took the rare step of recommending that evidence seized from a check cashing business be suppressed in the money laundering case against the business owner, criticizing federal agents on Tuesday for failing to realize the warrant made no reference to a crime.

John Drago, owner of Kayla Check Cashing Corp. and other check cashing businesses, was charged last August with violating the Bank Secrecy Act for allegedly helping his customers skirt anti-money-laundering requirements on transactions over $10,000. He was also accused of dodging Federal Insurance Contributions Act taxes by paying employees in cash.

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