Baltimore, Maryland – A Pikesville man has pleaded guilty to his role in a massive contraband cigarette trafficking scheme, authorities announced today.
Zarakh Yelizarov, age 52, pleaded guilty to conspiracy to distribute over $6.6 million in contraband cigarettes. His cousin, Elmar Rakhamimov, 42, of Owings Mills, Maryland, was the leader and organizer of the scheme, which involved purchasing contraband cigarettes from an undercover FBI agent between December 2011 and November 2013.
Yelizarov joined the conspiracy in October 2012 and helped launder the proceeds of the contraband cigarette sales through an international money laundering operation. The scheme involved wiring funds from banks in Latvia, Cyprus, Estonia, and New York to a bank in Maryland, disguising the money as legitimate business payments for medical equipment or supplies.
According to court documents, Yelizarov and Rakhamimov wired a total of $649,500 through 12 transactions between December 27, 2012, and September 5, 2013. Yelizarov and Rakhamimov received a fee of approximately 8% for the money laundering transactions, totaling $56,000.
Rakhamimov used his residence and his restaurant, Europe, to conduct the illegal transactions of contraband cigarettes and the money laundering. Several others, including Rakhamimov’s brother, Salim Yusufov, 43, and Adam Azerman, 59, have previously pleaded guilty to their roles in the scheme and are awaiting sentencing.
Yelizarov faces a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for July 14, 2015, at 1:00 p.m.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration, Office of Criminal Investigations, and the Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation.
Key Facts
- State: Maryland
- Category: Violent Crime|Fraud & Financial Crimes|Drug Trafficking
- Source: DOJ Press Release ↗
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