Sioux Falls Man Charged with Wire Fraud and Money Laundering

SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Sioux Falls, South Dakota, man for Wire Fraud and Money Laundering (Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity.)

Richard Kamolvathin, a/k/a Danuj Richard Kamolvathin, d/b/a Zolvent Pro, LLC, age 57, was indicted in August of 2023. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 12, 2023, and pleaded not guilty to the Indictment.

The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, three years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.

The Indictment alleges that beginning on or about October 13, 2020, and continuing through June 30, 2021, Kamolvathin knowingly devised a scheme to defraud where he fraudulently submitted two applications to the South Dakota Bureau of Finance and Management for Small Business Start-Up Grants for his business, Zolvent Pro, LLC. Kalmovathin’s grant applications and supporting documentation contained false statements, including the date of the registration of the business and the claimed business expenses. As the result, Kamolvathin received two grants: one for $350,000 and one for $13,800. Kamolvathin then used the funds for his own purposes, including the purchase of a luxury watch for $26,710.19.

The charges are merely accusations and Kamolvathin is presumed innocent until and unless proven guilty.

The investigation is being conducted by the U.S. Department of the Treasury, Office of Inspector General, Office of Investigations. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.   

Kamolvathin was released on bond pending trial which has been set for February 20, 2024.