Car Dealers Convicted of Money Laundering

Amir Hosseini and Hossein Obai were convicted in February of laundering millions of dollars for the Gangster Disciples and other big Chicago gangs.^[1] The two men were Chicago area auto dealers and were convicted of swapping Jaguars, BMWs and Cadillacs for millions of dollars in drug money.^[2] They received their sentences on October 11, Hosseini, the alleged mastermind, will be sentenced to 20 years and Obai 15 years.^[3]

Prosecutors asserted that the sentences were just; because the money obtained in the scheme had helped the gangs hide profits from selling cocaine and heroin.^[4] Witnesses called by Assistant U.S. Attorneys Daniel D. Rubenstein and Lisa M. Noller testified that the two men were well aware the money they took in came from narcotics sales.^[5]

The Judge has not officially imposed the sentences because he is waiting on financial information before deciding how much to fine the two men and what restitution if any to order, but he made it clear the sentences he announced are his final decision and will not change.^[6]

Money Laundering
Money laundering is crime that can be accomplished in three different ways.^[7]

The first is for a person “knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity” to conduct or attempt to conduct such a financial transaction which in fact involves the proceeds of an unlawful activity, with the intent; to promote the carrying on of specified unlawful activity;^[8] or to engage in conduct constituting a violation 26 U.S.C. §§ 7201 or 7206 (relating to the Internal Revenue Code);^[9] or knowing that the transaction is designed in whole or in part to; conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specified unlawful activity;^[10] or to avoid a transaction reporting requirement under State or Federal law.^[11]

The second way a person can violate section 1956, is for a person to transport, transmit, or transfer, (or attempt to transport, transmit, or transfer) a monetary instrument or funds from a place in the United States to or through a place outside the United States or to a place in the United States from or through a place outside the United States, with the intent to promote the carrying on of specified unlawful activity;^[12] or knowing that the monetary instrument or funds involved in the transportation represent the proceeds of some form of unlawful activity and knowing that such transportation, transmission, or transfer is designed in whole or in part, to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specified unlawful activity;^[13] or to avoid a transaction reporting requirement under State or Federal law.^[14]

The third and final way to violate section 1956 is for a person to have the intent to promote the carrying on of specified unlawful activity;^[15] conceal or disguise the nature, location, source, ownership, or control of property believed to be the proceeds of specified unlawful activity;^[16] or avoid a transaction reporting requirement under State or Federal law,^[17] and conduct or attempt to conduct a financial transaction involving property represented to be the proceeds of specified unlawful activity, or property used to conduct or facilitate specified unlawful activity.^[18]

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^[1] Mike Robinson, Convicted auto dealers learn their prison sentences, Associated Press Newswire, October 11, 2007, Associated Press Newswire, July 19, 2007, LEXIS, News Library, Wire News Services File.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] 18 U.S.C. §§ 1956, 1957 (2007).
^[8] 18 U.S.C. § 1956(a)(1)(A)(i).
^[9] Id. § 1956(a)(1)(A)(ii).
^[10] Id. § 1956(a)(1)(B)(i).
^[11] Id. § 1956(a)(1)(B)(ii).
^[12] Id. § 1956(a)(2)(A).
^[13] Id. § 1956(a)(2)(B)(i).
^[14] Id. § 1956(a)(2)(B)(ii).
^[15] Id. § 1956(a)(3)(A).
^[16] Id. § 1956(a)(3)(B).
^[17] Id. § 1956(a)(3)(C).
^[18] Id. § 1956(a)(3).