Trafficking Cigarettes, VA to CA: Minassian, Khajha, Ambarchyan.

Henri Minassian, Rene Khajha, and Suran Ambarchyan have been sentenced to federal prison and ordered to pay more than $1.9 million to California in restitution for lost tax revenue for their part in a massive tobacco trafficking scheme which operated from Virginia to California, Special Agent in Charge John A.Torres of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced Thursday, March 8.^[1]

The investigation began in 2002 and uncovered a complex conspiracy that included the trafficking of contraband cigarettes from Virginia to California, the illegal possession and distribution of contraband cigarettes by individuals in California, and money laundering.^[2] U.S. District Court Judge Florence Cooper sentenced Minassian after his guilty plea to conspiracy and money laundering in violation of the Contraband Cigarette Trafficking Act.^[3] Khajha and Ambarchyan pleaded guilty to receiving and possessing contraband cigarettes in violation of the Contraband Cigarette Trafficking Act.^[4]

Khajha was the owner of Country Home Tobacco, a retail cigarette store located in Monterey Park, Calif., but he was not a licensed cigarette distributor in California and could not lawfully possess or distribute unstamped cigarettes.^[5] Undercover agents met with Khajha, Minassian and Ambarchyan, and during the meeting, Khajha told the undercover agents that he and his associates were familiar with the cigarette operation in Roanoke, and were interested in buying cigarettes, which were allegedly stolen from Phillip Morris.^[6] The cigarettes were sold to the three men for $1,000 per case, for a grand total of $3.75 million in cash.^[7]

Under the Contraband Cigarette Trafficking Act it shall be unlawful for any person knowingly to ship, transport, receive, possess, sell, distribute, or purchase contraband cigarettes.^[8] It shall also be unlawful for any person knowingly to make any false statement or representation with respect to the information required by this chapter to be kept in the records of any person who ships, sells, or distributes any quantity of cigarettes in excess of 60,000 in a single transaction.^[9]

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^[1] ATF-Led Cigarette Trafficking Investigation Ends in Prison Terms, Hefty Fines for 3 Men, PRNewswire/USNewswire, March 8, 2007.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id
^[7] Id.
^[8] 18 U.S.C. § 2342 (a) (2007). ( the definitions of contraband cigarette is found in § 2341 and is defined as the term “contraband cigarettes” means a quantity in excess of 60,000 cigarettes, which bear no evidence of the payment state cigarette taxes in the “State where the cigarettes are found, If such State requires a stamp, impression, or other indication to be placed on packages or other containers of cigarettes to evidence payment of cigarette taxes”).
^[9] Id. at § 2342(b).