Two Cayman Islands financial services professionals, Eric St-Cyr and Joshua VanDyk of Clover Asset Management, have pleaded not guilty to money laundering charges at their arraignment hearing in a U.S. District Court.
Both defendants demanded a jury trial when they appeared before the District Court of Virginia in Alexandria on April 4. The trial has been set for July 21 and is expected to last approximately five days. Mr. St-Cyr, managing director of Clover Asset Management, and Mr. VanDyk, a wealth management adviser employed at the firm, were arrested on March 12 in Miami, following an undercover investigation by IRS agents during which both defendants allegedly agreed to launder criminal proceeds and other funds for the purpose of tax evasion.
A third man, Turks and Caicos attorney Patrick Poulin, was also arrested on the same day and charged for his role in the alleged scheme that consisted of transferring U.S. funds to Clover in Cayman through a Turks and Caicos foundation to hide the money from U.S. tax and other authorities.
According to the indictment, Mr. VanDyk and Mr. St-Cyr told undercover IRS agents that the use of a foundation as an intermediary was the preferable process for money laundering, whereas a trust intermediary was sufficient for tax evasion.
Both defendants also allegedly indicated that they would charge clients more to launder criminal proceeds than to assist in tax evasion.
Mr. St-Cyr and Mr. VanDyk attended the arraignment hearing last week, while Mr. Boulin was still in custody in Southern Florida and had to have his hearing rescheduled to a later date until transport to Virginia can be arranged.
Following the arraignment, Mr. VanDyk, a U.S. citizen continued his release on bail, while Mr. St-Cyr, a Canadian citizen, was remanded in custody.
However, the conditions for Mr. St-Cyr’s release on bail were set by the court on Thursday, April 3. Under the release conditions, he has to surrender his passport, establish a temporary residence in the Washington D.C. area and execute an extradition waiver.
He also has to post a US$2 million bond secured by his property in the Cayman Islands and deposit $300,000. Mr. St-Cyr is further instructed to refrain from meeting his “co-conspirators, clients or victims” except with prior approval.
The court further granted an application by Mr. VanDyk to have his bail conditions changed to allow him to travel to the Washington, D.C. area and stay overnight to meet with government attorneys and agents in the presence of his defense counsel.
Mr. VanDyk posted a $250,000 bond and under the conditions of his release has to reside in North Carolina.