Three Forwarders Charged with Exporting Consumer Electronics to Terrorist Mall
Immigration and Customs Enforcement has announced that three Miami freight forwarders and four individuals were recently indicted on charges involving the export of electronics to a U.S. designated terrorist entity in Paraguay.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Samer Mehdi; Khaled Safadi; Ulises Talavera; Emilio Jacinto Gonzalez-Neira; Cedar Distributors, Inc., a Miami-based freight-forwarding company owned by Safadi; Transamerica Express of Miami, Inc., a Miami-based freight forwarding company owned by Talavera; and Jumbo Cargo, Inc., a Miami-based freight forwarding company owned by Gonzalez-Neira, were indicted on charges of conspiracy, violating the International Emergency Economic Powers Act (IEEPA), and smuggling electronic goods from the U.S. to Paraguay.
Freight Forwarders Exported Sony Electronics to Terrorist Mall
According to the allegations in the indictment, from at least as early as March 2007 through and continuing to at least January 2008, freight-forwarders Talavera, through Transamerica, and Gonzalez-Neira, through Jumbo, exported Sony brand electronics, including Playstation 2 game consoles and digital cameras, to Mehdi, owner of Jomana Import Export, an electronics business located within the Galeria Page Mall, a shopping center in Ciudad del Este, Paraguay. Safadi, through Cedar, was a distributor of the electronics to the freight-forwarders.
Since December 6, 2006, the office mall building known as Galeria Page in Ciudad del Este, Paraguay, has been designated as a Specially Designated Global Terrorist entity by the Office of Foreign Assets Control. Consequently, any transaction or dealing by a U.S. person with Galeria Page Mall, including any transaction or dealing with an entity within the mall, is prohibited. The OFAC designation banned trade with Galeria Page Mall and any tenant companies located therein. At all relevant times to the indictment, it is alleged that the defendants were aware that shipping to the Galeria Page Mall was prohibited.
Defendants Created Fake Invoices for Prohibited Shipments
To conceal the true destination of the prohibited shipments, the defendants created fake invoices that contained false addresses and also listed fictitious ultimate consignees on the required Shippers Export Declarations (SEDs), and other necessary export paperwork. Locations referenced in these false documents, as well as corresponding emails, ensured that the electronics would reach the prohibited intended destination. Additionally, wire transfer payments from Mehdi in Paraguay to the U.S.-based distributors were routed through various facilities to mask their true origin.
Defendants Face Jail Time, Fines
The indictment seeks the forfeiture of an amount equal to the value of the electronics that were illegally exported. If convicted, the individual defendants face up to 20 years in prison on the IEEPA charges, 10 years in prison on the smuggling charges, and five years in prison on the conspiracy charge. The companies each face up to five years' probation on all charges, and fines of up to $1 million on the IEEPA charges, and $250,000 in fines on the smuggling and conspiracy charges.
ICE news release (dated 02/18/10) available at http://www.ice.gov/pi/nr/1002/100218bmiami.htm