Danielle Diarbakerly indicted with Federal Charges

Danielle Diarbakerly stands accused of orchestrating a multi-million-dollar money laundering conspiracy that preyed on dozens of victims across the United States, according to newly unsealed federal court documents.

Danielle Regina Diarbakerly, the defendant named in the indictment, was arrested on an outstanding federal warrant filed in the U.S. District Court for the Western District of Michigan. She is charged with conspiracy to commit money laundering under 18 U.S.C. § 1956(h), with the underlying activity tied to a fraudulent multistate lottery scam.

According to the indictment, Diarbakerly and unnamed co-conspirators operated a network of shell companies used to collect payments from victims who had been misled into believing they had won sweepstakes prizes, including cash awards and luxury vehicles.

Prosecutors allege that Diarbakerly used companies such as King Production LLC, Beacon Fulfillment LLC, Apollo Elite Trading LLC, and others to receive funds from victims under the pretense of collecting “taxes” and “fees” required to release their winnings. Victims were contacted through phone and email and were directed to make payments via U.S. Mail or wire transfer.

One named victim, identified in the indictment only as “J.G.” from Dowagiac, Michigan, reportedly mailed $150,000 to one of the shell companies in a span of just two months.

Authorities say that after receiving funds, Diarbakerly swiftly moved the money across accounts to “conceal and disguise the nature, location, source, ownership, and control” of the proceeds. In total, the scheme allegedly laundered over $3.3 million from approximately 25 victims, none of whom ever received the promised prizes.

The indictment includes a criminal forfeiture allegation, seeking a money judgment equal to the full amount laundered. If the funds or assets traceable to the fraud cannot be located, the government is prepared to pursue substitute assets.

Diarbakerly was arrested pursuant to a sealed warrant issued by U.S. Magistrate Judge Phillip J. Green on January 15, 2025. The charges carry significant prison time, with federal sentencing guidelines treating money laundering conspiracies as serious felonies, especially when they involve vulnerable victims and high-dollar losses.

If convicted, Diarbakerly could face up to 20 years in federal prison, plus financial penalties and asset forfeiture.