Bassam Kiriaki, a 46-year-old accountant with offices in Pawtucket, Rhode Island, has pleaded guilty to participating in a conspiracy that trafficked $1.2 million in contraband cigarettes into the state from Virginia. Kiriaki also admitted to participating in a conspiracy to defraud the food stamp program.
According to court records, Kiriaki and six other individuals were indicted by a federal grand jury in May 2013 on charges of allegedly participating in a complex conspiracy to import cigarettes from Virginia into Rhode Island that were sold in convenience stores and other locations allegedly owned or operated by members of the conspiracy and others. The conspiracy allegedly resulted in the loss of more than $1 million in Rhode Island state tax revenue.
The indictment also alleges that Kiriaki and others participated in various schemes and conspiracies to defraud other types of programs, including Social Security and the food stamp program. At the time of his guilty plea, Kiriaki admitted to making false representations to law enforcement and creating a false tax document in order to conceal the conspiracy.
Court records show that on March 30, 2013, the Virginia State Police stopped an alleged co-conspirator and seized $30,000 in cash from his vehicle. Kiriaki then made phone calls to the Virginia State Police, agreeing to tell them that the money was to buy merchandise for a “new” store in Virginia, Bad Boys Tobacco Stop, Inc. Kiriaki also discussed creating or backdating documents, including an IRS form, to substantiate the false claim. The tax form was then faxed to the Virginia State Police.
In addition, Kiriaki admitted to participating in a conspiracy and filing fraudulent documents with the United States Department of Agriculture Food and Nutrition Service so that a convenience store owned by a co-conspirator could maintain participation in the Supplemental Nutrition Assistance Program (SNAP) as an approved vendor, even though the store had been previously disqualified. The documents intentionally misrepresented the true owners of the business.
Kiriaki pleaded guilty to one count each of conspiracy to traffic contraband cigarettes and conspiracy to commit food stamp fraud. He is scheduled to be sentenced on June 6, 2014, by U.S. District Court Chief Judge William E. Smith. Each charge is punishable by statutory penalties of up to 5 years in federal prison followed by up to 3 years supervised release and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorneys William J. Ferland and Ly T. Chin. The investigation was conducted by the United States Attorney’s Office, Rhode Island State Police, FBI, Internal Revenue Service Criminal Investigation, Homeland Security Investigations, Social Security Administration – Office of the Inspector General/Office of Investigations and the U.S. Department of Agriculture Office of Inspector General.
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Key Facts
- State: Rhode Island
- Category: Drug Trafficking|Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release â†â€â€
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