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Cigarette Trafficking Ring Busted in R.I.
A federal grand jury indictment unsealed in U.S. District Court in Providence, Rhode Island, alleges a complex interstate contraband cigarette trafficking conspiracy responsible for the sale of more than $1.2 million dollars of contraband cigarettes in Rhode Island and the loss of more than one million dollars in tax revenue to the state.
The indictment names seven individuals, including Wissam Khalil, 40, of Central Falls, a Providence convenience store owner; his brothers Bassam Khalil, 48, and Najd Khalil, 25, of Pawtucket; Abdullah Alnahas, 36, of Cranston, a Providence convenience store owner; Bassam Kiriaki, 45, a Pawtucket accountant; and Richard Larrain, 23, of Providence, an enlisted soldier in the U.S. Army Reserves.
According to the indictment, the defendants allegedly bought contraband cigarettes in Virginia and sold them in Rhode Island in convenience stores and other locations, often under the cloak of purportedly legitimate businesses. The indictment also alleges that defendants engaged in other types of program fraud, including Social Security and food stamp fraud.
More than a dozen teams of federal and state law enforcement agents and officers executed federal arrest and search warrants early this morning, arresting the seven individuals and searching ten locations. The search warrants yielded a significant quantity of contraband cigarettes, approximately $100,000 in cash, business records, and four vehicles, all allegedly connected to the trafficking operation.
The majority of cash and cigarettes seized were discovered stashed in sophisticated hides in several of the locations. United States Attorney Peter F. Neronha noted, “As alleged, today’s indictment has taken down a wide-ranging, complex interstate criminal enterprise. Members of this enterprise, often under the cloak of purportedly legitimate businesses, used any means possible to steal more than a million dollars from Rhode Island taxpayers.”
The investigation, which involved a coordinated effort between state, federal, and local law enforcement, resulted in the seizure of assets worth hundreds of thousands of dollars. Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police, added, “The Rhode Island State Police will continue to target any organized criminal group that profits by taking advantage of a system set up to help those who truly need it.”
Valeria Mendez (Khalil), 30, of Central Falls, wife of Wissam Khalil, is charged with conspiring to make and making false statements to a government agency. The indictment charges the defendants with allegedly participating in a conspiracy to possess, transport, and distribute contraband cigarettes in Rhode Island.
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Key Facts
- State: Rhode Island
- Category: Organized Crime|Drug Trafficking|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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