Guilty Pleas Entered in Drug Money Case

One of the largest check-cashing services in the West and three of its top executives pleaded guilty to federal money laundering charges Monday for their role in a scheme to launder drug profits, the U.S. attorney’s office said.

The guilty pleas before U.S. District Judge Ronald S.W. Lew in Los Angeles cap a joint FBI-Los Angeles Police Department investigation that began several years ago at a check-cashing store in the San Fernando Valley.

After police surveillance teams noticed that drug traffickers were frequenting a Supermail outlet in Reseda, an undercover LAPD detective and an informant were able to pass themselves off as drug dealers and win the confidence of a store manager. The manager agreed to launder “drug money” in exchange for a 5% fee. According to federal prosecutors, that manager and others went on to launder more than $1 million in tainted funds.

Pleading guilty Monday were: Supermail International Inc. of Sacramento; Christine Annette Umbertino, the company’s chief executive; Alberto Joseph Umbertino, its president; and Mercedes Velga, a senior vice president.

The three defendants, all from Sacramento, could be sentenced to up to 20 years in federal prison and could be fined as much as $250,000 or twice the amount of money generated by the scheme. The company faces a maximum sentence of five years probation and a fine of up to $500,000 or twice the gross amount of money generated by the scheme.