RING LEADERS PLEAD GUILTY IN MONEY LAUNDERING CASE INVOLVING THE SALE OF UNTAXED CIGARETTES ON THE BLACK MARKET –- DEFENDANTS ADMIT FUNNELING PROFITS FROM THE ILLEGAL ENTERPRISE TO THE MIDDLE EAST

Bronx District Attorney Robert T. Johnson announced today the convictions of the three ringleaders of an illegal enterprise that resulted in hundreds of thousands of dollars being funneled to the Middle East by way of flight crews for Royal Jordanian Airlines.

Faiz Haddad, of 270 Longstreet Avenue, the Bronx, pled guilty to one count of Money Laundering in the 2nd degree a Class C felony offense; Abdelmajid Lababneh, of 267 East 202nd Street, the Bronx, pled guilty to one count of Money Laundering in the 3rd degree, a Class D felony offense; Brian Bess, of 12 Old Soldiers Road, Shinnecock Indian Reservation, Southampton, New York pled guilty to one count of Violation of New York State Tax Law, a Class D felony offense.

State Supreme Court Justice Barbara Newman set sentencing for Haddad for February 7, 2007 in Part T-23. The judge has indicated that Haddad, who pled guilty to the top count in the indictment, will receive a sentence of 3 to 9 years imprisonment. Haddad has also forfeited to the New York State Department of Taxation and Finance approximately $100,000 in cash that was seized during the course of the investigation. That money represents lost revenue from the sale
of untaxed cigarettes.

Sentencing for Lababneh, who also pled guilty to the top charge against him, has been set for February 6, 2007 in Part T-60. Acting State Supreme Court Justice Steven Barrett has indicated that Lababneh will receive a term of 1 1/3 to 4 years imprisonment and forfeit to the New York State Department of Taxation and Finance approximately $8,000 dollars in cash that was seized by investigators. Lababneh also will pay the State an additional $40,000.

Brian Bess, a Native American resident of the Shinnecock Reservation in Southampton, New York is scheduled to appear for sentencing before Acting State Supreme Court Justice Barrett in Part T-60 on March 13, 2007. Judge Barrett has indicated that Bess will be sentenced to 1 1/3 to 4 years imprisonment. Bess, who supplied the untaxed cigarettes for sale on the black market, will forfeit $60,000 that was seized during the course of the investigation and also pay the State an additional $40,000.

Mr. Johnson said these convictions were the result of a year and a half long joint investigation with the NYPD Citywide Vice Enforcement Division, the New York State Division of Taxation and Finance, and the New York State Police. The investigation focused on money laundering stemming from the trafficking and sale of untaxed cigarettes obtained from Native American reservations on Long Island. A total of 28 individuals, including the three ringleaders, were charged in three separate indictments with being affiliated with three distinct networks that supplied untaxed cigarettes purchased on reservations and delivered to bodegas and delicatessens, and a number of independent black market distributors.

Mr. Johnson said the investigation involved the extensive use of court ordered wiretaps, physical surveillance, and the use of Global Positioning Systems on vehicles belonging to the targets of the probe. During the course of the investigation Haddad was observed on six different occasions delivering money to individuals known to be crew members for Royal Jordanian Airlines who were staying at hotels in Manhattan and Queens prior to their flights back to Amman. Lababneh was observed making a similar delivery on at least one occasion. Information regarding these transactions has been shared with the appropriate Federal Authorities.

In addition to the three principals in the illegal enterprise, sixteen other defendants named in the indictments have pled guilty to violating New York State Tax Law. These other defendants received sentences ranging from probation to up to 16 months imprisonment. They also forfeited and or paid to the State of New York approximately $422,500. When added to the amount recovered from the three ringleaders, the New York State Department of Taxation and Finance will have recouped nearly $670,000. Although 28 defendants in all were indicted in June of 2005 eight were never apprehended and the case against one defendant is still pending.

The case is being prosecuted by Assistant District Attorney Kristen Bowes of the Rackets Bureau.