From: GoUpstate.com
By Luke Connell
Sixteen people — nine included as part of an Upstate ring — are facing indictments after a massive investigation into contraband cigarette operations, enterprises that saw tentacles reaching into at least four states and buying more than $33 million in cigarettes.
A 96-page indictment unsealed this week reads like the script from a Hollywood thriller, describing men paying undercover officers with “bags” full of hundreds of thousands of dollars, as well as luxury SUVs, and in one case, a 10-ounce gold bar ensconced in a small, red velvet bag. It also asserts that some of the accused laundered money through dozens of businesses and real estate purchases as part of a network that purportedly touched London and India.
The charges are the result of a three-year investigation by the U.S. Attorney’s Offices of the Western District of Virginia and the District of South Carolina, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service, ICE Homeland Security Investigations, and a Virginia county sheriff’s office.
According to the indictment, the men bought large sums of cigarettes in Virginia — a state with a low cigarette tax — and shipped them, often in U-Haul trucks, to states with higher cigarettes taxes, such as South Carolina, Pennsylvania and New York. By purchasing, cigarettes in Virginia and paying that state’s taxes — or buying untaxed cigarettes — then selling the goods in a higher-tax state without paying taxes, criminals can make “substantial” amounts of money.
Seven people from West Virginia, Virginia and New York face charges as a result of indictments in February and August.
In an Oct. 6 indictment, nine people — at least six from Spartanburg County — are accused of buying nearly 930,000 cartons of untaxed cigarettes from undercover law enforcement officers, paying $20.9 million between April 2009 and July 18 of this year. The ring is accused of depriving the Commonwealth of Virginia of nearly $2.8 million in taxes.
Anjay Patel, 35, of Spartanburg and his business partner, Joseph Emmanuel, 38, of Mauldin have been charged with conspiracy to traffic in contraband cigarettes, conspiracy to commit money laundering, and money laundering charges. Emmanuel also is charged with conspiracy to dispose of cigarettes and not pay federal tax, conspiracy to traffic in counterfeit state tax stamps and sale or receipt of stolen goods, according to court documents.
Viresh Patel, 42, of Moore, Purvinkumar Patel, 32, of Spartanburg and Chris Moneyhan, 36, also of Spartanburg were each charged with conspiracy to traffic in contraband cigarettes, conspiracy to commit money laundering, trafficking in contraband cigarettes and money laundering charges.
Anjay’s wife, Shilpaben Patel, 43, of Spartanburg was charged with conspiracy to traffic in contraband cigarettes and conspiracy to commit money laundering.
Preston McCurley, 26, is facing charges of conspiracy to traffic in contraband cigarettes, conspiracy to commit money laundering, conspiracy to dispose of cigarettes and not pay federal tax, conspiracy to traffic in counterfeit tax stamps, trafficking in contraband cigarettes, sale or receipt of stolen goods, and money laundering charges. McCurley’s place of residence was not available Thursday.
Boss Ramsey, 30, of Cowpens was charged with conspiracy to traffic in contraband cigarettes and conspiracy to commit money laundering.
Phil White, whose age and residence were not available, was charged with conspiracy to traffic in contraband cigarettes, the indictment states.
Sixteen people — nine included as part of an Upstate ring — are facing indictments after a massive investigation into contraband cigarette operations, enterprises that saw tentacles reaching into at least four states and buying more than $33 million in cigarettes.
A 96-page indictment unsealed this week reads like the script from a Hollywood thriller, describing men paying undercover officers with “bags” full of hundreds of thousands of dollars, as well as luxury SUVs, and in one case, a 10-ounce gold bar ensconced in a small, red velvet bag. It also asserts that some of the accused laundered money through dozens of businesses and real estate purchases as part of a network that purportedly touched London and India.
The charges are the result of a three-year investigation by the U.S. Attorney’s Offices of the Western District of Virginia and the District of South Carolina, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service, ICE Homeland Security Investigations, and a Virginia county sheriff’s office.
According to the indictment, the men bought large sums of cigarettes in Virginia — a state with a low cigarette tax — and shipped them, often in U-Haul trucks, to states with higher cigarettes taxes, such as South Carolina, Pennsylvania and New York. By purchasing, cigarettes in Virginia and paying that state’s taxes — or buying untaxed cigarettes — then selling the goods in a higher-tax state without paying taxes, criminals can make “substantial” amounts of money.
Seven people from West Virginia, Virginia and New York face charges as a result of indictments in February and August.
In an Oct. 6 indictment, nine people — at least six from Spartanburg County — are accused of buying nearly 930,000 cartons of untaxed cigarettes from undercover law enforcement officers, paying $20.9 million between April 2009 and July 18 of this year. The ring is accused of depriving the Commonwealth of Virginia of nearly $2.8 million in taxes.
Anjay Patel, 35, of Spartanburg and his business partner, Joseph Emmanuel, 38, of Mauldin have been charged with conspiracy to traffic in contraband cigarettes, conspiracy to commit money laundering, and money laundering charges. Emmanuel also is charged with conspiracy to dispose of cigarettes and not pay federal tax, conspiracy to traffic in counterfeit state tax stamps and sale or receipt of stolen goods, according to court documents.
Viresh Patel, 42, of Moore, Purvinkumar Patel, 32, of Spartanburg and Chris Moneyhan, 36, also of Spartanburg were each charged with conspiracy to traffic in contraband cigarettes, conspiracy to commit money laundering, trafficking in contraband cigarettes and money laundering charges.
Anjay’s wife, Shilpaben Patel, 43, of Spartanburg was charged with conspiracy to traffic in contraband cigarettes and conspiracy to commit money laundering.
Preston McCurley, 26, is facing charges of conspiracy to traffic in contraband cigarettes, conspiracy to commit money laundering, conspiracy to dispose of cigarettes and not pay federal tax, conspiracy to traffic in counterfeit tax stamps, trafficking in contraband cigarettes, sale or receipt of stolen goods, and money laundering charges. McCurley’s place of residence was not available Thursday.
Boss Ramsey, 30, of Cowpens was charged with conspiracy to traffic in contraband cigarettes and conspiracy to commit money laundering.
Phil White, whose age and residence were not available, was charged with conspiracy to traffic in contraband cigarettes, the indictment states.
Brian McGinn, spokesman for the U.S. Attorney’s Office of the Western District of Virginia, said the defendants in this case are being held and transported to Virginia for a bond hearing Monday.
What’s at stake?
If the government secures a conviction against all of the defendants, it could have far-reaching effects in the Upstate. At various points in the indictment, Anjay Patel or one of his associates reportedly tells undercover investigators that he has 15 businesses, and he claims to own 110 stores in the Carolinas, saying that he leases them to tenants who are required to purchase 30 percent of their cigarettes from a legitimate wholesaler.
Anjay Patel also claims to use ATM machines to launder several hundred thousand dollars a month, the indictment states. At one point, he reportedly tells an investigator that he filters the cigarettes through 140 stores in the Carolinas with which he is associated.
According to the indictment, McCurley told investigators that he and Emmanuel “had over 200 stores” in the Greenville area.
If convicted, the accused also could be forced to forfeit their property. The indictment includes a list of businesses and properties associated with the group. Forty-four pieces of property are listed in places such as Cowpens, Gaffney, Spartanburg and Moore, as are 35 businesses. More than 130 bank accounts are included on the list, as well.
