Tax Department Cigarette Operation Nets 27 On Federal Gun, Trafficking And Conspiracy Charges

Tax Department Cigarette Operation Nets 27 On Federal Gun, Trafficking And Conspiracy Charges
State Undercover Agents Set Up Shop in Virginia Storefront to Nail Illegal Cigarette Dealers

FOR RELEASE:
IMMEDIATE, Thursday
June 05, 2008

New York State Department of Taxation and Finance Commissioner Robert L. Megna today announced the federal indictment of 27 illegal cigarette traffickers who laundered money, sold millions of counterfeit tax stamps and purchased large quantities of cigarettes in Virginia for resale in New York and Michigan.

The 17-month-long investigation concluded late Tuesday when nine indictments against the 27 people - 21 of whom are from New York City or Yonkers - were returned in U.S. District Court for the Eastern District of Virginia.

The long-term investigation was conducted by State Tax Department investigators working with the U.S. Attorney's Office for the Eastern District of Virginia, federal agents from ATF and IRS in Richmond, investigators from the Virginia Alcohol Beverage Control Board and the King George County Sheriff's Department, and U.S. Immigration and Customs Enforcement.

Charges against the 27 people included criminal conspiracy, trafficking in contraband cigarettes, money laundering and felony possession of firearms and ammunition. Nineteen of the suspects are in custody.

In the fall of 2006, an undercover storefront location designated as KG Wholesale was established in King George, Virginia, which was being operated by undercover agents from the Tax Department. The storefront was wired for video and audio surveillance to record the identities and activities of individuals who would arrive to purchase cigarettes.

During the course of the investigation, undercover agents conducted more than 142 transactions. In these transactions the defendants paid $6.1 million in cash to purchase 295,000 cartons of untaxed cigarettes most of which were destined for re-sale to wholesalers and retailers in the New York City area.

It is also alleged that some of the defendants sold or attempted to sell 6.2 million in counterfeit cigarette stamps to the undercover agents, and that one traded two handguns and ammunition to agents in exchange for cigarettes.

Tax Commissioner Robert Megna stated: "These indictments should serve as a warning to others who may be tempted, especially in light of the recent increase in the state cigarette tax, to engage in trafficking in untaxed cigarettes. Each of these defendants faces many years in prison and the Tax Department is committed to doing all that it can to insure that other wholesale traffickers in bootleg cigarettes face a similar fate. We are working with state and federal law enforcement agencies to hold bootleggers accountable and we thank United States Attorney Chuck Rosenberg for his aggressive prosecution of these cases."

Nicholas Yakoumakis, 27, of Queens, is charged with various counts of criminal conspiracy, trafficking in contraband cigarettes, money laundering, and felony possession of firearms and ammunition.

Charged with criminal conspiracy, trafficking in contraband cigarettes and money laundering are:

Suliman Al-Ghananim, 46, and Roxanne Al-Ghananim, 42, both of the Bronx.
Rafea Alnablsi, 41, of Woodhaven, Queens.
Omar Mannaee, 31, of Yonkers.
Maeen Graber, 26, of Hamtramch, Michigan.
Mousa Alhadad, 29, of Hamtramch, Michigan.
Mohammed Shahbain, 22, of Hamtramch, Michigan.
Wei Guang Kuang, 43, of Brooklyn.
Lee C. Yip, 55, of Fayetteville, South Carolina.
Hong Long Wong, 60, of Brooklyn.
Zi N. Lu, 47, of Brooklyn.
Ahmed Mozeb, 34, of Brooklyn.
Omar Muthana, 42, of Dearborn, Michigan.
Atef Gabr, 48, of Ridgewood, Queens.
Josh Fonfrias, 38, of the Bronx.
Ammar Saleh, 26, of Queens.
Ahmed Alghazali, 25, of Yonkers.
Amin Lnu, no age or address available.
Abdul A. Alhumaidi a/k/a Sabry, 48, of Manhattan.
Juan Santiago, 20, of Queens.
Jugal Singh, 63, of Brooklyn.
Adel Kassim, 26, of Manhattan.
Osam Yahya, 22, of Brooklyn.

Charged with trafficking in contraband cigarettes and money laundering are:

Jaime J. Oquendo, 47, of the Bronx.
Mohamed Sadiqi, 33, of Queens.
Rashad Y. Saleh, 27, of Queens.

All of the suspects are in custody or out on bail except for Omar Muthana, Amin Lnu, Suliman Al-Ghananim , Roxanne Al-Ghananim, Maeen Gaber, Mousa Alhadad, Halil Lnu and Lee C. Yip.

Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.

#####

Last Modified: June 06, 2008