Baltimore, Maryland – A Pikesville man has pleaded guilty to a massive conspiracy to distribute over $6.6 million in contraband cigarettes, according to the U.S. Department of Justice.
Zarakh Yelizarov, 52, is accused of laundering proceeds from the scheme, which involved selling cigarettes without paying state taxes. His cousin, Elmar Rakhamimov, was the mastermind behind the operation, purchasing contraband cigarettes on 18 occasions between December 2011 and November 2013 from an undercover FBI agent in Baltimore County.
Yelizarov joined the conspiracy in October 2012, working alongside Rakhamimov to launder proceeds through international money laundering operations. They disguised transactions as legitimate business payments for medical equipment or supplies, wiring funds from banks in Latvia, Cyprus, Estonia, and New York to a Maryland bank account.
Between December 27, 2012, and September 5, 2013, Yelizarov and Rakhamimov wired a total of $649,500. They received a fee of approximately 8% for the money laundering transactions, totaling $56,000. Rakhamimov used his residence and restaurant, Europe, to conduct the illegal activities.
Yelizarov faces up to five years in prison for conspiracy to traffic in contraband cigarettes. Sentencing is scheduled for July 14, 2015, at 1:00 p.m. before U.S. District Judge William D. Quarles, Jr.
Elmar Rakhamimov and several other associates have previously pleaded guilty to their roles in the scheme and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised law enforcement agencies for their work in this investigation. The case is being prosecuted by Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr.
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Key Facts
- State: Maryland
- Agency: DOJ USAO
- Category: Drug Trafficking|Fraud & Financial Crimes|Organized Crime
- Source: Official Source ↗
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