SEATTLE — The colossal used car dealership ZEIN AUTOMOBILES, INC., operating as Independence Auto Sales and Best Bet Auto Sales in Lynnwood and Everett, WA, pleaded guilty today in U.S. District Court for Seattle. The company was sentenced for its role in a massive financial reporting crime that involved failing to file monetary transaction reports on cash sales exceeding $10,000.
According to U.S. Attorney Jenny A. Durkan, ZEIN Autos Inc. has been penalized with the forfeiture of $1.5 million to the United States, a fine of $250,000, and a corporate integrity agreement to prevent future illegal conduct. The plea agreement stems from an investigation that revealed employees and agents of the company intentionally failed to report these cash transactions, which were often linked to drug trafficking.
In September 2013, law enforcement conducted searches at both dealerships, where undercover officers and confidential sources purchased vehicles for cash without reporting these transactions. Salespeople reportedly assured the agents that they were experienced in such illegal schemes, offering various methods to evade reporting requirements.
Under the terms of the corporate integrity agreement, ZEIN Autos Inc. must now maintain a log of all cash transactions over $10,000 and ensure compliance with IRS reporting obligations. The company will be subjected to unannounced audits during a two-year probationary period to verify these reports are being made. They have also agreed to publicly disclose their guilty plea, penalties, and compliance plan.
The investigation was a collaborative effort by the Drug Enforcement Administration (DEA), Internal Revenue Service Criminal Investigation (IRS-CI), Seattle Police Department, and King County Sheriff’s Office. Assistant United States Attorneys Kate Vaughan and Robert Westinghouse prosecuted the case.
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Key Facts
- State: Washington
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Drug Trafficking|White Collar Crime
- Source: Official Source ↗
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