United States Attorney
Northern District of Texas

1100 Commerce St., 3rd Fl.
Dallas, Texas 75242-1699

Telephone (214) 659-8600
Fax (214) 767-0978

Federal Inmates Sentenced for Running
Money Laundering Scam
While Serving Federal Prison Sentences

United States Attorney Richard B. Roper announced that Billy Frank Long was sentenced today by the Honorable Jerry Buchmeyer, United States Senior District Judge, to 24 months imprisonment following his guilty plea in May to an Information charging him with one count of money laundering. Long’s co-defendant, Frank Lee Harris, age 39, who pled guilty to the same charge, was sentenced last month to 40 months imprisonment and ordered to surrender to the Bureau of Prisons on November 14, 2006. Long, age 66, was ordered to surrender to the Bureau of Prisons on January 9, 2007. Both Long and Harris have been on bond since their voluntary surrender to federal officials in May.

In 2002, while serving federal prison sentences at Seagoville, FCI in Dallas, inmate Frank Lee Harris advised fellow inmate Billy Frank Long about a money laundering scheme. Harris said that through his contacts, he could arrange to have offshore corporations and trusts set up, at a cost of a couple of thousand dollars each plus travel expenses. The money to be laundered would be taken to an attorney in Florida by an associate of Harris’s, and the attorney would set up an offshore corporation and trust in the Bahamas and deposit the money into a Bahamian bank. The money would then be repatriated back to the United States in the form of loan proceeds, via wire transfers, from the offshore corporation, thereby laundering the money.

While still incarcerated, Billy Frank Long told another inmate about the money laundering scheme he had heard about and this inmate relayed the information about the scheme to the government. At the direction of a federal law enforcement officer, this inmate told Long that he had an “uncle” who was a drug dealer and wanted to use Long’s services to launder money. Neither Harris nor Long knew that this inmate was cooperating with the government and that the “uncle” was, in fact, an undercover agent.

After he was released from Seagoville FCI, Long and the undercover agent, who was posing as the “uncle,” exchanged several messages and finally met in person on April 8, 2003, at a hotel in Mesquite, Texas. During this meeting, which was recorded by law enforcement officers, the “uncle” represented that he had been a drug dealer for many years and that he had a large sum of money that needed to be laundered so that he could get out of the drug business. Long explained several options to launder the money and the “uncle” decided on the option of having the money delivered to an attorney in Florida who would then get the money to the Bahamas and establish an offshore bank account and corporation. That attorney would then prepare all the necessary documents to evidence a loan from the offshore corporation to the “uncle.” The money would then be repatriated to the “uncle” in the form of wire transfers as loan proceeds. For his role in the deal, Long wanted the “uncle” undercover agent to financially help him with his boat business.

On May 2, 2003, Long and the “uncle” met again at the same hotel and the “uncle” gave $15,000 cash to Long to be laundered. On June 17, 2003, the “uncle” met with Long to receive the documents prepared by the attorney. However, the documents that Long gave the “uncle” did not show that an offshore bank account and corporation were established, and after several failed attempts to get additional documentation from Long, law enforcement officers confronted him on October 7, 2005, and Long confessed to the scheme. Long admitted keeping $5000 of the funds for himself and delivering $9,970 to an associate of Harris’s, “AR,” to be taken to the attorney in Florida. Long further admitted that he deposited $1000 into two bank accounts belonging to his wife, and spent the remaining $3000 on a multitude of other things. After he confessed, he assisted the government in pursuing Frank Lee Harris.

On June 1, 2004, Frank Lee Harris was transferred from Seagoville FCI to a halfway house in Dallas. Prior to Harris’s release, an associate, “AR,” had acted as the intermediary with Long and the undercover agent. After his transfer to the halfway house, Harris became personally involved and on July 30, 2004, Harris met with Long and the “uncle” undercover agent at a restaurant in Dallas. The “uncle” told Harris that he had proceeds from drug sales that he needed to launder. Long, Harris and the “uncle” discussed details and then met again the following month when Harris contacted the attorney in the Bahamas and discussed the preparation of the documents. On October 13, 2004, the “uncle” undercover agent called Harris and said he had $50,000 to be laundered and the following week, the “uncle” met with Harris in a hotel room in Dallas where he delivered the $50,000 cash to Harris. However, when Harris attempted to leave the meeting, he was detained by law enforcement officers and interviewed.

U.S. Attorney Roper praised the investigative efforts of Internal Revenue Service - Criminal Investigation. The case was prosecuted by Assistant United States Attorney Christopher Stokes.

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