Louisville Man Sentenced for Conspiracy to Commit Money Laundering

LEXINGTON, Ky. - A Louisville, Ky., man, Benard Babot, 39, was sentenced by U.S. District Judge Karen Caldwell to 66 months in prison, for conspiracy to commit money laundering.

According to his plea agreement, Babot knew that his coconspirators communicated with businesses located around the world, to entice them to send funds to purchase goods his coconspirators falsely purported to sell. Babot opened at least 25 business bank accounts in the actual name of, or a very similar name to, these legitimate companies, which were international food, agricultural, or chemical supply companies, for the purpose of receiving money from the victim purchasers. He opened some of these accounts in Lexington, Kentucky. According to documents filed with the Court, Babot also set up shell companies with Secretaries of State imitating the legitimate companies.

Babot would then provide the bank account information to his coconspirators, who in turn conveyed it to the victims for the purpose of directing payment. The victims wired money to Babot, and never received the goods they purchased. According to his Plea Agreement, Babot would then funnel the proceeds through additional accounts, send cashier's checks to conspirators, wire funds to coconspirators located overseas through peer-to-peer money transmission services, and withdraw the funds for personal use, often in amounts exceeding $10,000.

In total, between January 2019 and December 2023, Babot participated in concealing more than $8.2 million in fraud proceeds, resulting from schemes to defraud over 30 international businesses located in more than 25 countries. According to documents filed with the Court, Babot earned $2,480,392.11 as a result of his participation in the offense and used these proceeds on personal expenditures and personal business ventures, such as his night club in Louisville.

Under federal law, Babot must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.

Paul McCaffrey, Acting United States Attorney for the Eastern District of Kentucky; and Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office; jointly announced the sentencing.

The investigation was conducted by the FBI. Assistant U.S. Attorney Kate Dieruf is prosecuting the case on behalf of the United States.

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