Home - , , , - Lycamobile Executives Arrested for Money Laundering Charges in France

Lycamobile Executives Arrested for Money Laundering Charges in France

lycamobile
Lycamobile, a T-Mobile MVNO in the US, is facing deep water as its offices in France were raided by authorities for money laundering and fraud allegations. The raid held last Friday resulted to the arrest of nineteen individuals, nine of which were sequentially charged with money laundering a minimum of £13.4 million ($19.65 million) and VAT fraud. Among those who were arrested and charged was the telecom's general manager in France, Alain Jochimek.

The allegations first stemmed from a Buzzfeed video wherein cash collectors from the company were seen dropping backpacks containing hundreds of thousands of pounds at London's post offices last year. The website alleged that the French authorities have pinpointed that this money was suspected to be only a façade put on by shell companies. The cash was actually profits laundered from criminal activities. The telecom company however, denied being involved in any crime as it claimed that the cash drops videotaped on the footage were part of their 'day to day banking' operations.

It is important to note that Lycamobile has been considered as among the largest Conservative Party corporate donors. Since 2011, they have donated £2.2 million ($3.22 million). Last year, they donated half a million pounds or about $730,000. Speaking with regards to this contribution, a spokesperson for the Conservative Party cleared that the donations they received were 'properly and transparently declared to the Electoral Commission.' The body then publishes these donations as compliance to the rules of the Electoral Commission.


Various news publications tried to get a comment from the company's UK headquarters but failed to do so. Out of the nine people who were charged, eight were released on bail. Only one man was kept in custody by the authorities. The telecom company denied claims against financial malpractice.


Source: The Register

17 comments:

Comment Page :
  1. Is the US company implicated in anything?

    ReplyDelete
    Replies
    1. I don't think that there is a separate US company, corporate headquarters are in London. Buy no US based Lycamobile employees have been arrested.

      Delete
  2. I would never do business with them because their service is very poor. But now it makes sense as it was just a shell company

    ReplyDelete
    Replies
    1. It is a good company and works better than tmobile

      Delete
    2. How can it work better than T-Mobile when it uses T-Mobile's infrastructure?

      Delete
    3. That is true..how can it be better than T-Mobile when it uses that network to provide service? Maybe the OP meant something else? maybe better than Sprint?

      Delete
  3. I tried them once before moving to Cricket. I like the free incoming calls. Who would've thought there's no real money in cell companies.

    ReplyDelete
    Replies
    1. What free incoming calls??

      Delete
    2. They do have free incoming call from a Lyca only number (internal network.)

      Delete
  4. shocking! well, I shouldn't really be. This could happen in any business as long as there are greedy shady people around...

    ReplyDelete
  5. Bad coverage, high prices. It's amazing that the company received enough money to launder.

    ReplyDelete
    Replies
    1. "Bad coverage, high prices. It's amazing that the company received enough money to launder"

      About sums it up in a nutshell.

      Delete
  6. I've heard about creative financial issues with them before. Sounds like they are a short term company.

    ReplyDelete
  7. They treat their staff like slaves

    ReplyDelete
    Replies
    1. and their slaves like staff!

      Delete
  8. Great article, Christine!

    ReplyDelete
  9. I wonder what has come out of this. I haven't heard anything else after this. I wonder how this is going to affect their providing service here in the US if at all?

    ReplyDelete
Comment Page :