ICE El Dorado Task Force investigation leads to charges against 6 in contraband cigarette probe
NEW YORK – A federal grand jury in Martinsburg, West Virginia, has returned an indictment charging six individuals with unlawful cigarette smuggling. The indictments stem from an a joint investigation with U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations’ (HSI), El Dorado Task Force, the FBI, Internal Revenue Service – Criminal Investigations (IRS-CI), the New York Department of Taxation and Finance, and the West Virginia State Police.
Farouk Mohamed Aldaylam, 28, of Queens Village, New York, Fahd Hamood Aljahaf, 37, of Bronx, New York, Galal Hameed Kassim, 29, and Muneer Kaid Khaled, 25, both of Brooklyn, New York, Amir Mohamed Alsaidi, 37, of Baltimore, Maryland, and Mohamed Abdo Elbarati, 30, of Winchester, Virginia, are alleged to have conspired to profit from the unlawful sale of contraband cigarettes.
The indictment charges that the defendants transported large quantities of cigarettes across state lines for redistribution and sale. The cigarettes were acquired in Virginia, where the tax rate for cigarettes is one of the lowest in the nation, and sold in New York, which has one of the nation’s highest tax rates. The cigarettes were possessed and transported in West Virginia.
Tobacco retailer Smoke Palace, LLC, of Winchester, Virginia, which was owned and operated by defendant Elbarati, was responsible for the acquisition of the contraband. Smoke Palace and Elbarati are alleged to have purchased millions of dollars’ worth of cigarettes from various wholesalers in the region, primarily with cash, before reselling them to out of state smugglers for a profit.
“Organizations that attempt to systematically defraud state and local governments and profit through crime are sorely mistaken,” said Glenn Sorge, acting special agent in charge HSI New York. “HSI’s El Dorado Task Force and its law enforcement partners are committed to investigating financial crime and contraband smuggling activities that pose a threat to our public safety and the economic well-being of the United States.”
“The New York State Tax Department has a vigorous and coordinated effort to battle the sale of untaxed cigarettes,” said New York State Commissioner of Taxation and Finance Jerry Boone. “As we see in this case, working closely with our law enforcement partners is, more and more, leading to success.”
Each of the six defendants is charged with one count of conspiracy. Elbarati is further charged with four counts of transportation of Contraband Cigarettes.” Aldaylam is further charged with two counts of transportation of contraband cigarettes. Alsaidi is further charged with two counts of transportation of contraband cigarettes. Each of the defendants faces up to five years in prison and a fine of up to $250,000 on each of the aforementioned counts. Under the federal sentencing guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
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