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US Attorney - Glendale Man Convicted In Cigarette Smuggling Conspiracy
Posted on Thursday, April 24, 2008
LOS ANGELES - LAWFUEL - The United States Attorney for the Eastern
District of North Carolina, George E.B. Holding announced yesterday
that a federal jury in Los Angeles, California, found AVEDIS
DJEREDJIAN, 39, of Glendale, California, guilty on 15 counts for
conspiring to traffic in contraband cigarettes, in violation of Title
18, United States Code, Section 371; conspiring to violate Title 18,
United States, Code, Section 1956 (a)(1)(A)(I) by conducting financial
transactions with the intent to promote the carrying on of specified
unlawful activity, in violation of Title 18, United States
Code,Section 1956(h); and structuring financial transactions and
aiding and abetting, in violation of Title 31, United States Code,
Sections 5324(a)(3) and 5324 (d).
The jury, however, could not come to a unanimous decision regarding
charges against the two other defendants, CARMEN BADRIAN, 36, and
ROOBIK OHANIANSAKI, 50, also of Glendale, California.
This matter was originally indicted by a Federal Grand Jury sitting in
the Eastern District of North Carolina on October 25, 2006, as much of
the criminal activity took place within this federal
district. However, the defendants moved to transfer the
matter to California. On May 16, 2007, after lengthy hearings and over
the objection of the United States, the Court in the Eastern District
of North Carolina transferred the matter to the Central District of
California.
The case focused on the efforts of the defendants to purchase
cigarettes at a lower cost in North Carolina, transport them to
California to sell, and avoid payment of higher cigarette taxes in
California. According to the evidence presented at the trial of this
matter, from January, 2002, to June, 2005, DJEREDJIAN and his wife,
CARMEN, and OHANIANSAKI purchased more than 530,000 cartons of
cigarettes from North Carolina, which is considered to be one ofthe
states with a low cigarette tax rate, and other sources, and shipped
and sold the contraband in California, a state considered to have a
high cigarette tax. However, according to the evidence, the
defendants had purchased only enough legitimate California tax stamps
from the California Board of Equalization for 2,040 cartons. These tax
stamps are required by California to be placed on each individual pack
to show that the state tax had been paid before any pack could be sold
in the state. As a result, during the time period alleged in the
indictment (2002 to 2005), purchases in the State of North Carolina
were used to defraud the State of California of more than $9.5 million
in cigarette taxes revenue.
Mr. Holding commented on the important nature of this case: `An
important part of our system of Government is a recognition of the
sovereignty of states when it comes to setting tax rates and managing
the sale and distribution of goods within a state's boundaries. Here,
North Carolina was used by these defendants to break the laws of
California. I am pleased that we could work hand in hand with the
United States Attorney for the Central District of California and with
investigators from the Bureau of Alcohol, Tobacco, Firearms and
Explosives, the Internal Revenue Service and the California Board of
Equalization to put a stop to this criminal activity.'
The maximum penalty for conspiring to traffic in contraband cigarettes
is 5 years' imprisonment, 3 years supervised release and a fine of
$250,000. Conspiring to violate Title 18, United States, Code,
Section 1956 (a)(1)(A)(I) by conducting financial transactions with
the intent to promote the carrying on of specified unlawful activity
is punishable by up to 20 years' imprisonment, 5 years supervised
release, and a fine of $500,000 or twice the value of the property
involved in the transaction, whichever is greater. The maximum penalty
for structuring financial transactions and aiding and abetting is 10
years ' imprisonment, 3 years supervised release and a $500,000
fine. Sentencing in this matter is set for August 4, 2008.
As noted in Mr. Holding's comments, the investigation of the case in
the Eastern District of North Carolina was conducted by the Bureau of
Alcohol, Tobacco, Firearms, and Explosives and the Internal Revenue
Service. In theCentral District of California, the investigative
agencies included the Bureau of Alcohol, Tobacco, Firearms and
Explosives and the California Board of Equalization. Assistant United
States Attorneys Clay Wheeler and Joshua Royster of the Eastern
District of North Carolina handled this matter for the United States.
Posted on Thursday, April 24, 2008
LOS ANGELES - LAWFUEL - The United States Attorney for the Eastern
District of North Carolina, George E.B. Holding announced yesterday
that a federal jury in Los Angeles, California, found AVEDIS
DJEREDJIAN, 39, of Glendale, California, guilty on 15 counts for
conspiring to traffic in contraband cigarettes, in violation of Title
18, United States Code, Section 371; conspiring to violate Title 18,
United States, Code, Section 1956 (a)(1)(A)(I) by conducting financial
transactions with the intent to promote the carrying on of specified
unlawful activity, in violation of Title 18, United States
Code,Section 1956(h); and structuring financial transactions and
aiding and abetting, in violation of Title 31, United States Code,
Sections 5324(a)(3) and 5324 (d).
The jury, however, could not come to a unanimous decision regarding
charges against the two other defendants, CARMEN BADRIAN, 36, and
ROOBIK OHANIANSAKI, 50, also of Glendale, California.
This matter was originally indicted by a Federal Grand Jury sitting in
the Eastern District of North Carolina on October 25, 2006, as much of
the criminal activity took place within this federal
district. However, the defendants moved to transfer the
matter to California. On May 16, 2007, after lengthy hearings and over
the objection of the United States, the Court in the Eastern District
of North Carolina transferred the matter to the Central District of
California.
The case focused on the efforts of the defendants to purchase
cigarettes at a lower cost in North Carolina, transport them to
California to sell, and avoid payment of higher cigarette taxes in
California. According to the evidence presented at the trial of this
matter, from January, 2002, to June, 2005, DJEREDJIAN and his wife,
CARMEN, and OHANIANSAKI purchased more than 530,000 cartons of
cigarettes from North Carolina, which is considered to be one ofthe
states with a low cigarette tax rate, and other sources, and shipped
and sold the contraband in California, a state considered to have a
high cigarette tax. However, according to the evidence, the
defendants had purchased only enough legitimate California tax stamps
from the California Board of Equalization for 2,040 cartons. These tax
stamps are required by California to be placed on each individual pack
to show that the state tax had been paid before any pack could be sold
in the state. As a result, during the time period alleged in the
indictment (2002 to 2005), purchases in the State of North Carolina
were used to defraud the State of California of more than $9.5 million
in cigarette taxes revenue.
Mr. Holding commented on the important nature of this case: `An
important part of our system of Government is a recognition of the
sovereignty of states when it comes to setting tax rates and managing
the sale and distribution of goods within a state's boundaries. Here,
North Carolina was used by these defendants to break the laws of
California. I am pleased that we could work hand in hand with the
United States Attorney for the Central District of California and with
investigators from the Bureau of Alcohol, Tobacco, Firearms and
Explosives, the Internal Revenue Service and the California Board of
Equalization to put a stop to this criminal activity.'
The maximum penalty for conspiring to traffic in contraband cigarettes
is 5 years' imprisonment, 3 years supervised release and a fine of
$250,000. Conspiring to violate Title 18, United States, Code,
Section 1956 (a)(1)(A)(I) by conducting financial transactions with
the intent to promote the carrying on of specified unlawful activity
is punishable by up to 20 years' imprisonment, 5 years supervised
release, and a fine of $500,000 or twice the value of the property
involved in the transaction, whichever is greater. The maximum penalty
for structuring financial transactions and aiding and abetting is 10
years ' imprisonment, 3 years supervised release and a $500,000
fine. Sentencing in this matter is set for August 4, 2008.
As noted in Mr. Holding's comments, the investigation of the case in
the Eastern District of North Carolina was conducted by the Bureau of
Alcohol, Tobacco, Firearms, and Explosives and the Internal Revenue
Service. In theCentral District of California, the investigative
agencies included the Bureau of Alcohol, Tobacco, Firearms and
Explosives and the California Board of Equalization. Assistant United
States Attorneys Clay Wheeler and Joshua Royster of the Eastern
District of North Carolina handled this matter for the United States.