Zein Automotives, Inc., doing business as Independence Auto Sales and Best Bet Auto Sales, pleaded guilty to financial reporting crimes and was sentenced in U.S. District Court in Seattle, Washington, after failing to file a monetary transaction report, announced U.S. Attorney Jenny A. Durkan.
The largest volume used car dealership in Washington, Zein Automotives, forfeited $1.5 million to the United States, paid a $250,000 fine, and entered into a corporate integrity agreement to ensure the illegal conduct does not happen again.
According to the plea agreement, between January 2010 and September 2013, employees and agents of Zein Automotives entered into cash sales of vehicles in excess of $10,000 and failed to report the cash sales to the IRS.
Undercover officers and confidential sources repeatedly purchased vehicles for cash at the two dealerships, posing as drug traffickers. The sales people assured the agents that they were familiar and comfortable with such transactions and proposed various schemes that they said would avoid the cash transactions reporting requirements.
Zein Automotives, Inc., d/b/a Independence Auto Sales and Best Bet Auto Sales, has locations in Lynnwood and Everett, Washington. The car dealership was the subject of searches by law enforcement in September 2013.
“This resolution takes substantial profit from a business that flouted the law to fatten its bank account,” said U.S. Attorney Jenny A. Durkan. “It should serve as a warning to others – we will enforce laws on currency reporting which are an important tool for keeping illegal conduct out of the stream of commerce.”
The case was investigated by the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), the Seattle Police Department, and the King County Sheriff’s Office. The case was prosecuted by Assistant United States Attorneys Kate Vaughan and Robert Westinghouse.
The corporate integrity agreement requires the company to keep a log and report every cash transaction in excess of $10,000. Both the sales managers and title clerks are required to ensure the reports are made to the IRS. During a two-year probationary period, the company is subject to unannounced audits to ensure such reports are being made.
Defendant: Zein Automotives, Inc.
Criminal Charges: Failure to file a monetary transaction report
City and State: Seattle, Washington
Exact Date: September 2013
Sentence or Outcome: Forfeited $1.5 million, paid a $250,000 fine, and entered into a corporate integrity agreement
Dollar Amounts: $1.5 million, $250,000
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Key Facts
- State: Washington
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release â†â€â€
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