Redacted Kahmiri Indictment

"
IN THE
UNITED STATES DISTRICT COURT
FOR THE
WESTERN DISTRICT OF VIRGINIA
HARRISONBURG DIVISION
AUGUST 2011 SESSION
OFFICE U,S, OIST, COURT
". AT HARRISONBURG, VA
PILED
AUG 0 3 2011

CLERK
UNITED STATES OF AMERICA Criminal No.: 5: no<a::::oa'd.
y,
MOHAMMAD SYED LONE KASHMIRI
aIkIa "Mohammad Lone-Kashmiri"
aIkIa "Mohammad Lone Kashmiri"
aIkIa "Mohammad Kashmiri"
aIkIa "Mohammad Lonekashmiri"
aIkIa "M. Saeed"
FARHAT JABEEN LONE KASHMIREE
aIkIa "Farhat Jabeen Lone-Kashmeree"
aIkIa "Farhat Jabeen Lone Kashmiri

aIkIa "

aIkIa "
FARMAN ALI
MALIK ASHRIF
INDICTMENT
The Grand Jury charges that:
COUNT!
SEALED
Title 18 U.S.C. 371
Title 18 U.S.C. 2342
(18 U.S.c. 371)
(Conspiracy - Contraband Cigarettes)
1. From in or about June 2009, and continuing up to and including the date of this
indictment, in the Western District of Virginia and elsewhere, the defendants,
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MOHAMMAD SYED LONE KASHMIRI, FARHAT JABEEN LONE KASHMIREE,
, FARMAN ALI and
MALIK ASHRIF knowingly and intentionally conspired with other persons, known and
unknown to the Grand Jury, to commit the following offense against the United States,
to-wit:
To knowingly ship, transport, receive, possess, sell distribute and purchase
contraband cigarettes, as that term is defined in Title 18, United States Code,
Section 2341, to-wit: a quantity of more than 10,000 cigarettes which bore no
evidence of the payment of applicable State cigarette taxes, in violation of Title
18 United States Code 2342(a).
INTRODUCTION
2. Title 18, United States Code, Section 2342(1) defines contraband cigarette trafficking and
states, "It shall be unlawful for any person knowingly to ship, transport, receive, possess,
sell, distribute, or purchase contraband cigarettes."
3. Title 18, United States Code, Section 2341(2) defines "contraband cigarettes," as "a
quantity in excess of 10,000 cigarettes, which bear no evidence of the payment of
applicable State or local cigarette taxes in the State or locality where such cigarettes are
found, if the State or local government requires a stamp, impression, or other indication
to be placed on packages or other containers of cigarettes to evidence payment of
cigarette taxes, and which are in the possession of any person other than ... " a person
defined in Title 18 United States Code, Section 2341 (2)(A)-(D).
4. According to Title 18, United States Code, Section 2341 (2) only the following
individuals may possess cigarettes which bear no evidence that the requisite State or local
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taxes have been paid:
a. A person holding a permit as a manufacturer of tobacco products or as an export
warehouse proprietor, or a person operating a customs bonded warehouse or an
agent of such person;
b. A common or contract carrier transporting the cigarettes involved under a proper
bill of lading or freight bill;
c. A person licensed by the State where the cigarettes are found to account for and
pay cigarette taxes imposed by such State, and who has complied with the
accounting and payment requirements relating to such license or authorization
with respect to the cigarettes involved;
d. An officer, employee, or other agent of the Unites States or a State having
possession of such cigarettes in connection with the performance of official
duties.
5. Section 58.1-1001, Code of Virginia (1950 as amended) states:
A. Except as provided in subsection B, in addition to all other taxes now imposed by
law, every person within this Commonwealth who sells, stores or receives cigarettes
made of tobacco or any substitute thereof, for the purpose of distribution to any person
within this Commonwealth, shall pay to this Commonwealth an excise tax of one and
one-quarter mills on each such cigarette sold, stored or received before August 1, 2004;
an excise tax of one cent on each such cigarette sold, stored or received on and after
August 1, 2004, through midnight on June 30, 2005; and an excise tax of 1.5 cents on
each such cigarette sold, stored or received on and after July 1,2005.
B. In addition to all other taxes now imposed by law, every person within the
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Commonwealth who sells, stores, or receives roll-your-own tobacco, for the purpose of
distribution within the Commonwealth, shall pay to the Commonwealth a cigarette excise
tax at the rate of 10% of the manufacturer's sales price of such roll-your-own tobacco.
6. Section 58.1-1003(A), Code of Virginia (1950 as amended) states:
A. Except as otherwise specifically provided pursuant to 58.1-1003.2, the taxes
imposed by this chapter shall be paid by affixing stamps equaling the amount ofthe tax in
the manner and at the time herein set forth. The stamps shall be affixed to each individual
package, bag, box or can in such a manner that their removal will require continued
application of water or steam. Every stamping agent in the Commonwealth shall affix to
any unstamped cigarettes the requisite denominations and amount of stamp or stamps that
represent the proper tax levied by this chapter prior to shipping to other wholesale dealers
or retail outlets.
7. A "master case" of cigarettes, also known as a "case" of cigarettes, contains 60 cartons of
cigarettes.
8. A "half-case" of cigarettes contains 30 cartons of cigarettes.
9. A standard "carton" of cigarettes contains 10 packs of cigarettes.
10. A standard "pack" of cigarettes contains 20 cigarettes.
11. "Taxed" or "stamped" cigarettes means a State or local tax stamp has been affixed to the
cigarettes (or if such State or locality does not use tax stamps then such State or local
taxes have been paid).
12. "Untaxed" or "unstamped" cigarettes means a State or local tax stamp has not been
affixed to the cigarettes (or if such State or locality does not use tax stamps then such
State or local taxes have not been paid).
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13. The Commonwealth of Virginia has experienced an influx of organizations and
individuals who buy large volumes of cigarettes to transport to other states. Virginia is a
source state for low-cost, low-tax cigarettes. States that impose high taxes are often
destination states, such as New York.
14. In 2009 and 2010, the Commonwealth of Virginia levied a cigarette tax of $0.30 per pack
or $3 per carton of cigarettes.
15. In 2009 and 2010, the State of New York levied a cigarette tax of$2.75 per pack or
$27.50 per carton of cigarettes.
16. In 2009 and 2010, New York City levied a cigarette tax of$1.50 per pack or $15 per
carton of cigarettes (plus the state tax levy of $2.75 per pack-equaling a combined tax
levy of $4.25 per pack) or $42.50 total per carton of cigarettes. This tax is included in the
retail price indicated above.
17. Effective Apr 1,2009, the Children's Health Insurance Program Reauthorization Act of
2009 (CHIPRA) increased the federal cigarette tax from $3.90 to approximately $10.06
per carton.
18. There are many different kinds and quality levels of cigarettes. For example, Marlboro
cigarettes are considered Tier One, meaning the highest quality. In 2010, the retail price
for a carton of Marlboro cigarettes in Virginia was approximately $36 per carton. The
wholesale price in 20 lOin Virginia for this same carton of cigarettes would be
approximately $32.08.
19. In 2009 the retail price for a carton of Marlboro cigarettes in New York was
approximately $71.70. In 2010 the retail price for a carton of Marlboro cigarettes in New
York was approximately $92.
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20. In 2009 the retail price for a carton of Marlboro cigarettes in New York City was
approximately $88. In 20 I 0 the retail price for a carton of Marlboro cigarettes in New
York City was approximately $110.
21. The difference in price of a carton of cigarettes in Virginia, as compared to N ew York
and other high cigarette tax states, is such that individuals engaged in the illegal
trafficking of cigarettes can make a substantial amount of money by buying cigarettes in
Virginia, paying the Virginia cigarette tax, and selling them in other states that levy a
greater tax. Individuals engaged in the trafficking of contraband cigarettes can make
even more money by buying untaxed cigarettes and selling them in states that levy a
greater cigarette tax. The procurement of cigarettes from low tax states or untaxed
cigarettes for sale in high tax states, without paying the cigarette tax in the high tax state,
is the essence of contraband cigarette trafficking.
22. The illegal profits generated by the sale of contraband cigarettes in high tax states can
also be used to make additional cigarette purchases from low or no tax sources. In this
way the contraband cigarette trafficking enterprise can continue.
23. The Bureau of Alcohol, Tobacco, and Firearms is the principal federal agency
responsible for investigating the transportation and possession of contraband cigarettes.
24. To conceal their contraband cigarette trafficking, participants sometimes file false or
misleading reports with government agencies, andlor place counterfeit tax stamps on the
cigarette packs they sell.
MANNER AND MEANS OF THE CONSPIRACY
25. It was part of the conspiracy that the defendants, MOHAMMAD SYED LONE
KASHMIRI (hereafter "KASHMIRI"), FARHAT JABEEN LONE KASHMIREE
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(hereafter "F. KASHMEREE"), (hereafter "
(hereafter " FARMAN
ALI (hereafter "ALI") and MALIK ASHRlF (hereafter "ASHRlF") (hereafter
collectively as "DEFENDANTS") acquired taxed and untaxed cigarettes in the Western
Judicial District of Virginia and sold these cigarettes to others for distribution in locations
outside of Virginia, both known and unknown to the Grand Jury.
26. It was part of the conspiracy that KASHMIRl was the owner and operator of 340 Quick
Stop (hereafter "Quick Stop"), a convenience store located at 304 N. Buckmarsh Street,
Berryville, Virginia.
27. It was a further part of the conspiracy that from on or about June 1,2009 through May
31, 2011, the DEFENDANTS purchased from law enforcement officers approximately
339,510 cartons of cigarettes, of which approximately 338,366 cartons of cigarettes were
untaxed.
28. It was a further part of the conspiracy that the DEFENDANTS paid law enforcement
officers approximately $8,718,057, for all the cigarettes, and $8,688,507 for the untaxed
cigarettes. The cigarettes the DEFENDANTS purchased had a 2010 retail value of
approximately $7,499,340 in Virginia, or $19,164,980 in New York, or $22,914,650 in
New York City.
29. It was a further part of the conspiracy that the DEFENDANTS used various businesses,
to include 340 Quick Mart, Berryville, Virginia and Clearbrook Shopping Center,
Clearbrook, Virginia, to facilitate and conceal the illegal conduct.
30. It was a further part of the conspiracy that the DEFENDANTS used various bank
accounts to conceal proceeds from the illegal conduct.
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31. It was a further part of the conspiracy that the DEFENDANTS used proceeds from the
illegal conduct to promote their business in contraband cigarettes.
32. It was further part of the conspiracy that the DEFENDANTS took merchandise orders
from other individuals for large quantities of taxed and untaxed cigarettes.
33. It was a further part of the conspiracy that during the course of the conspiracy,
KASHMIRI deprived the Commonwealth of Virginia of more than $1,012,539 in
cigarette taxes. Contraband cigarettes that were transported and sold in other states
resulted in the loss of additional tax revenues to those states.
BACKGROUND ON DEFENDANTS
34. MOHAMMAD SYED LONE KASHMIR! ("KASHMIRI")
a. Has listed his social security number as
b. Has listed his date of birth as
c. Has listed is address as 304 Buckmarsh Street, Apt. 2F, Berryville, Virginia
22611.
d. Has listed his occupation as Convenience Store(s) owner.
e. Has listed as the business number or
f. Has provided cellular telephone number
g. Has indicated he has a Virginia driver's license, number
35. FARHAT JABEEN LONE KASHMIREE ("F. KASHMIREE")
a. Has listed her social security number as
b. Has listed her date of birth as
c. Has listed her address as 304 N. Buckmarsh Street, Apt. 2F, Berryville, Virginia
22611.
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d. Has listed her occupation as Convenience Store owner.
e. Has listed her residential telephone number as
f. Has indicated she has a Virginia driver's license, number .
36.
a.
b. Has listed
c. Has listed
d. Has listed
e. Has listed
f. Has listed
37. ("
a.
b. Has listed
c. Has listed
d. Has listed
e. Has listed
f. Has listed
g.
38. FARMAN ALI ("ALI")
a. His social security number is unknown.
b. Has listed his Pakistan Passport number as
c. Has listed his U.S. Visa number as .
d. Has listed his date of birth as
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e. Has listed is address as 304 N. Buckmarsh St., Berryville, VA 22611 and 634
Lakeside Dr., Apt. A, Plainfield, IN 46168.
f. Has listed his occupation as Convenience Store clerk.
g. Has listed his residential telephone number as .
h. His Virginia driver's license number is unknown.
39. MALIK ASHRIF ("ASHRIF")
a. His social security number is unknown.
b. Has listed his date of birth as
c. Has listed is address as 1091 Thompson Dr., Bay Shore, New York 117706-
6214.
d. Has listed his occupation as Convenience Store owner.
e. His listed his residential telephone number is unknown.
f. His Virginia driver's license number is unknown.
40. Moharmnad S. Lonekashrniri and Farhat J. Lonekashrnere are the owners and operators
of 340 Quick Mart, located at 304 N. Buckmarsh St., Berryville, Virginia 22611.
4l. 340 Quick Mart uses Employer Identification Number
42. Mohammad S. Lonekashrniri is the manager and director and Farhat J. Lonekashrniree is
a member of Fass, Inc. d/b/a Clearbrook Shopping Center located at 3522 Martinsburg
Pike, Clearbrook, Virginia 22624.
43. Fass, Inc. d/b/a Clearbrook Shopping Center uses
44. Bank checking account number with Bank of Clarke County is listed in the
name ofMoharmnad S. Lonekashrniri and Farhat J. Lonekashrniree.
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name of Mohammad S. L. Kashmiri d/b/a 340 Quick Mart - Lottery Account.
name of Mohammad S. L. Kashmiri d/b/a 340 Quick Mart.
47. Bank safe deposit box account number with Bank of Clarke County is listed in the
name of Mohammad S. Lonekashmiri and Farhat J. Lone Kashmiree.
names ofFASS Inc. d/b/a Clearbrook Shopping Center - Lottery Account.
names ofFASS Inc. d/b/a Clearbrook Shopping Center - Lottery Account.
50. Bank savings account number with Bank of Clarke County is listed in the name
of Farhat J. Lonekashmiree, serving as Custodian for under the
Uniform Transfer to Minors Act.
51. Bank savings account number with Bank of Clarke County is listed in the name
of Farhat 1. Lonekashmiree, serving as Custodian for under the
Uniform Transfer to Minors Act.
name of Farhat J. Lonekashmiree.
53. Bank checking account number with BB&T Bank is listed in the name of
FASS Inc., d/b/a Clearbrook Shopping Center.
54. Bank checking account number with HSBC is listed in the name of
Mohammad S. Kashmiri and Farhat J. Lone-Kashmiree.
55. Bank savings account number with HSBC is listed in the name of
Mohammad S. Kashmiri and Farhat J. Lone-Kashmiree.
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56. Bank checking account number is listed in the name of

57. Bank checking account number is listed in the name .
58. Bank checking account number is listed in the name of Farman Ali.
59. On April 6, 2010, Mohammad Syed Lone Kashmiri, d/b/a 340 Quick Mart, 304 N.
Buckmarsh St., Berryville, Virginia registered as a Money Service Business, listing the
Bank of Clarke County, Berryville, Virginia, as the financial institution where the
primary transaction account was held. The primary transaction account number is

60. On December 23, 20 1 0, Fass, d/b/a Clearbrook Shopping Center, 3522 Martinsburg Pike,
Clearbrook, Virginia registered as a Money Service Business, listing the Bank of Clarke
County, Berryville, Virginia, as the financial institution where the primary transaction
account was held. The primary transaction account number is
61. VEHICLES
a. 2010 Volkswagon 2D Cony. (Virginia registration registered to
Mohammad S. Lone Kashmiri, 304 Buckmarsh Street, Berryville, VA 22611.
b. 2010 Toyota Land Cruiser (Virginia registration ) registered to Farhat
Jabeen Lonekashmiree, 304 N. Buckmarsh St., Apt. 2F, Berryville, VA 22611.
62. REAL ESTATE
a. Mohammad S. Lonekashmiri is the record owner of.42 acres located at 3522
Martinsburg Pike, Clearbrook, Virginia 22644 (Property Tax Map 33-A-117 A).
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b. Mohammad S. Lonekashmiri and Farhat J. Lonekashmiree are record owners of
.39 acres located at 304 N. Buckrnarsh St., Berryville, Virginia 22611 (Property
Tax Map 14A2-A-7).
c. Mohammad S. Lonekashmiri is the record owner of .35 acres located at 306 N.
Buckrnarsh St., Berryville, Virginia 22611 (property Tax Map 14A2-A-6).
d. Mohammad S. Lone Kashmiri and Farhat Kashmiree are the record owner of .43
acres located at 43237 Overview Place, Leesburg, Virginia 20176 (Property Tax
Map 62K 7 75).
e. Mohammad Saeed Lone Kashmiri and Farhat Jabeen Lone Kashmiri (last name
the same on this real estate holdings) 32-34 73
rd
Street, Jackson Heights, New
York 11370 (Property: Borough-Queens, Block 1168, Lot 23).
63. In 2008 law enforcement officers received information that the DEFENDANTS were
possibly engaged in the illegal trafficking of cigarettes.
OVERT ACTS
In furtherance of the conspiracy and to affect the objects of the conspiracy, the following
overt acts, among others, were committed in the Western District of Virginia:
64. During the weekend of May 30-31,2009, an undercover law enforcement officer
(hereafter UC-I, UC-2, UC-3 and UCA) received a telephone call on his undercover cell
phone. When UC-I answered the phone, a male voice asked "if this was **** from
**********". UC-I replied that it was. The male voice, later identified as KASHMIRI
said that he wanted to purchase some cigarettes from UC-I. KASHMIR! then told UC-I
that he wanted several brands of Marlboro cigarettes. When UC-I told KASHMIR! that
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all he had was Newport cigarettes, KASHMIRI said that he wanted 100 cartons of
Newports. UC-I told KASHMIRI that the only Newports he had in stock were
"untaxed" Newports. KASHMIRI replied that he would still like to have 100 cartons.
UC-I told KASHMIRI that he was in the Woodstock, Virginia area and KASHMIRI
asked UC-l ifhe could come to Woodstock and pick up the cigarettes. UC-l and
KASHMIRI agreed to meet at noon on June 1,2009, and KASHMIRI indicated he would
call UC-I when he was on his way in order to get directions.
65. On the morning of June 1,2009, UC-l received a call from KASHMIRI whereby
KASHMIRI told U C-I that he was getting ready to leave and wanted to confirm that they
were still good to meet. During this call KASHMlRI again asked about the cigarettes
and UC-I reiterated that all he had was cartons of untaxed Newports. KASHMIRI said
that he still wanted to get 100 cartons of these Newports. They agreed to meet at the
Sheetz gas station in Woodstock later that day.
66. Later in the afternoon on June I, 2009, UC-I and KASHMIRI met at the Sheetz gas
station in Woodstock, Virginia. KASHMIRI was a passenger in a blue Honda Civic,
which was being operated by a middle-eastern female later identified as his wife, F.
KASHMIREE. UC-l told KASHMIRI that they would now go to his warehouse and
directed KASHMIRI to follow him. Both vehicles then left the Sheetz and proceeded to
the undercover warehouse. Upon arrival at the warehouse, KASHMIRI was instructed to
back his vehicle up to the roll-up door which led to the cigarette room. UC-2 was already
at the warehouse when UC-l, KASHMIRI and F. KASHMIREE arrived. KASHMIRI
inquired about the Newport cigarettes and was told by UC-l that he could take as many
as he wanted but that they did not have tax stamps on them. KASHMIRI then asked if
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UC-I ifhe had any cigarettes with tax stamps. UC-I directed KASHMIRI and F.
KASHMIREE to a pallet containing a few half cases of mixed cigarettes which were
stamped. After examination, KASHMIR! and F. KASHMIREE indicated that they
wanted to purchases these. UC-I then brought any empty pallet to the KASHMIR!s and
asked them to place on the pallet any and all cigarettes they wanted to purchase. UC-I
told KASHMIR! that he did not accept credit cards and KASHMIR.! responded that he
did not have enough cash. UC-I told KASHMIR! that he could pay UC-I what he had
and that UC-I would collect the rest later. While KASHMIRI and UC-I went to the
office to calculate the bill, F. KASHMIREE and UC-2 loaded the purchased cigarettes
into KASHMIR!'s Honda Civic. In total, the KASHMIR! and F. KASHMIREE
purchased 94 cartons of taxed cigarettes, 192 cartons of untaxed cigarettes and small
amount of other tobacco products (hereafter "OTP") such as snuff and chewing tobacco
for which Kashmiri paid $7,380 in U.S. currency. Prior to departing, KASHMIR!
indicated to UC-I that UC-I had come recommended to him from .
67. On June 2, 2009, UC-I met with KASHMIR! and collected from him $1,000 owed from
the previous day's transactions. No additional cigarettes were ordered at this time.
68. On June 8, 2009, UC-I received a phone call from KASHMIR! during which
KASHMIRI indicated that he was "in the area" (referring to the undercover warehouse)
and wanted to know if he could stop by and pick up some cigarettes. KASHMIR! was
told by UC-I that all he had was "untaxed" cigarettes and KASHMIR! said that was
okay. They agreed to meet at the warehouse later in the day.
69. Later on June 8, 2009, KASHMIR! arrived at the undercover warehouse operating his
blue Honda Civic. He arrived alone. KASHMIR! asked UC-I ifhe had any taxed
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cigarettes and UC-1 replied that as he indicated earlier all he had was "unstamped stuff."
After inspecting the inventory, KASHMIRI selected five cartons of mixed brands
(untaxed) for purchase. UC-1 then told KASHMIRI that he did have some cases of
stamped Wildhorse brand cigarettes at the back of the cage. KASHMIRI then went to the
back of the cage and selected four one-half cases ofWi1dhorse cigarettes (taxed) for
purchase. KASHMIRI then asked UC-1 ifhe would give him the discount on the
Marlboro Mediums and the Marlboro Ultra Lights being offered by Phillip Morris.! UC-
1 replied that he would. After selecting other cartons of cigarettes for purchase,
KASHMIRI and UC-1 transported the cart of selected cigarettes to KASHMIRI's vehicle
and KASHMIRI loaded them into the trunk. In total, KASHMIRI purchased 120 cartons
of taxed cigarettes and 259 cartons of untaxed cigarettes. KASHMIRI gave to UC-1
$6,320 in U.S. currency as payment for the cigarettes. Prior to departing the area,
KASHMIRI and UC-1 agreed to meet later in the week at KASHMIRI's store for lunch.
70. On June 23, 2009, KASHMIRI called UC-1 for the purpose of purchasing more
cigarettes. UC-1 informed KASHMIRI that all he had was untaxed cigarettes. The two
agreed to meet later in the day at the undercover warehouse.
71. Later on June 23, 2009, KASHMIRI arrived at the undercover warehouse in his blue
Honda Civic. KASHMIRI had an unknown middle-eastern male passenger in his
vehicle. KASHMIRI and the unknown male began to inspect the inventory and placed
the product they wished to purchase on a pallet provided by UC-1. KASHMIRI then
handed his car keys to the unknown male and asked him to load the selected cigarettes
into the Honda Civic. In total, KASHMIRI purchased 150 cartons of taxed cigarettes and
I The discount then being offered by Philip Morris for Marlboro Mediums is $10 plus $2.50/carton. The discount
then being ofIeretl [or other Marlboro brands was $2.50/carton.
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an assortment of taxed cigarette products (23 tins of smoking tobacco and 15 cans of
snuff) and 150 cartons of untaxed cigarettes. KASHMIR! paid $6,000 in U.S. currency
for the cigarettes. KASHMIR! identified the unknown male as simply a friend who was
helping KASHMIR! out as he had recently been injured and could not lift things.
72. On June 25, 2009, UC-l received a telephone call from KASHMIR! during which
KASHMIR! told UC-l that he had a customer who was looking to get 1000 cartons of
Marlboro Regular cigarettes and 200 cartons of Marlboro 100 cigarettes, all without tax
stamps. UC-l indicated that he did not have these in stock but would call KASHMIR!
when he did. KASHMIR! said that was good and that when they were at the warehouse
he would send "her" to get them.
73. On June 26, 2009, UC-l contacted KASHMIR! via cell phone and told him that he been
able to obtain 1020 cartons of the Marlboro Regulars and 150 cartons ofthe Marlboro
100' s. KASHMIR! replied that would be good enough and that he would be down on
Monday (June 29, 2009) morning at 8:30 a.m.
74. On July 1,2009, KASHMIR! called UC-I and apologized for not coming by on June 29,
2009, as he had a funeral to attend. KASHMIR! agreed to stop by later on this date to
pick up his order. KASHMIR! and UC-l agreed to meet at 1 :00 p.m. KASHMIR!
arrived as scheduled in a silver Honda Pilot SUV
2
accompanied by an unknown middle-
eastern male (same unknown male that was with KASHMIR! during the June 23, 2009
transaction noted above). KASHMIRI and the unknown male examined the cigarettes
UC-I had obtained for him, as well as other items that were in the warehouse. After
several minutes, KASHMIR! said that he would not be able to take everything, and told
2 This vehicle had Virginia license number KFM3804 and was registered to Farhat Jabeen LONE-
Kashmiree, 304 North Buckmarsh Street, Apt. 2F, Berryville, Virginia 22611-1014.
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UC-l that he could only take 13 cases of the Marlboro Regulars and 1 case of the
Marlboro 100's. UC-3 then pulled the pallet containing these cases of cigarettes over to
KASHMIRI's vehicle and assisted KASHMIRI in loading them into the Honda Pilot.
UC-l asked KASHMIR! ifKASHMIR!'s "customer" was going to need this volume of
cigarettes in the future, to which KASHMIRl replied "yes, about a 1000 cartons a week."
In total, KASHMIRI purchased 840 cartons of untaxed cigarettes. KASHMIR! asked
for his "commission" for brokering the deal with the "new customer" and UC-l gave him
an $880 discount. KASHMIR! handed UC-l an envelope containing $19,000 in U.S.
currency as payment for the cigarettes. At this point, KASHMIR! and his passenger
departed the warehouse.
75. On July 2, 2009, UC-l received a telephone call from KASHMIR! during which
KASHMIR! indicated that he wanted to come to UC-l 's warehouse to purchase the
remaining cases of cigarettes that he did not purchase on July 1 st. UC-l told KASHMIR!
that would be fine, but that KASHMIRI would need to be at the warehouse by 8:00 a.m.
KASHMIR! agreed to arrive by that time.
76. On July 3, 2009, KASHMIR! arrived at the warehouse at approximately 8:30 a.m. in his
silver Honda Pilot accompanied by the same unknown middle-easterner male that had
accompanied him on earlier transactions. After inspecting the inventory, KASHMIR!
selected a variety of Marlboro and Newport brand cigarettes for purchase and UC-3
retrieved a pallet on which to load the cigarettes. The cigarettes were then loaded in the
Honda Pilot. In total, KASHMIRl purchased 210 cartons of untaxed cigarettes.
KASHMIRl then handed UC-I $6,550 in U.S. currency as payment for the cigarettes.
After settling the money issue, KASHMIRl told UC-l that he would need 2000 cartons
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of unstamped Parliament Lights and 90 cartons of unstamped Marlboro Ultra Lights for
"his customer." He further added that he would need 500 cartons of stamped Marlboro
Lights for himself. UC-l indicated that he would order these cigarettes in a couple of
days and would let KASHMIRI know when they arrived. KASHMIRI and his associate
then departed the warehouse.
77. Later in the afternoon of July 3, 2009, KASHMIRI called UC-l to see ifKASHMIRI
could come by the warehouse to purchase the remaining four cases of untaxed
Marlboro's that he did not purchase earlier that morning. KASHMIRI indicated that "his
customer" was coming early the following day (July 4, 2009) so that KASHMIRI would
need the cigarettes delivered to him that evening (July 3, 2009). At approximately 8:45
p.m. UC-l and UC-3 arrived at KASHMIRI's store (340 Quick Mart) in Berryville,
Virginia. KASHMIRI was waiting for them when they arrived and directed the UCs to a
side parking lot. Moments later, KASHMIRI exited a side door with two unknown males
(one was the same male as from the earlier deals at the warehouse) and took possession
of the cases of cigarettes and placed them in his store. In total, KASHMIRI received 270
cartons of untaxed cigarettes. At this time, one of the unknown males exited the store
and handed UC-l a black bag containing $6,000 in U.S. currency. KASHMIRI then
asked when the cigarettes he had previously ordered would be ready to which UC-l
indicated he would call KASHMIRI when they arrived. The UC agents then departed the
scene.
78. On July 8, 2009, UC-l contacted KASHMIRI to let him know that the large quantity of
untaxed cigarettes and smaller quantity of taxed cigarettes that he had requested during
their July I and July 3, 2009 transactions had arrived. KASHMIRI asked UC-l to deliver
USAO #2011 R00403
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them to his Berryville, Virginia store. UC-l agreed to make the deliver and indicated he
would make the delivery later that evening.
79. At approximately 8:30 p.m. on July 8, 2009, UC-l and UC-3 arrived at KASHMIRI's
store (340 Quick Mart) and met with the clerk who identified himself as KASHMIRI's
(later identified as placed a call to
KASHMIRI then told the UCs that KASHMIRI would be back to the store in 15 minutes.
The clerk instructed the UCs to bring the cigarettes into the store which the UCs did.
UC-l informed the clerk that most of the cigarettes were untaxed but that some were
taxed and that he would keep them separate. In total, the UCs delivered 1050 cartons of
untaxed cigarettes and 180 cartons of taxed cigarettes. After the delivery was made, the
UCs waited approximately 25 minutes for KASHMIRI to arrive. After his arrival, UC-l
and KASHMIRI went to the rear of the store where he was shown the delivered product.
At this point, KASHMIRI's wife, F. KASHMIREE, appeared from a back bedroom and
had a brief conversation with KASHMIRI, in a foreign language. F. KASHMIREE then
left the room, but returned a short time later with a small paper bag containing a large
quantity of U.S. currency. She handed the bag to her husband who then handed it to UC-
1. Ultimately, KASHMIRI paid UC-I $23,650 in U.S. currency as payment for the
cigarettes.
80. After the above deal was complete, F. KASHMIREE asked to speak to UC-l privately.
F. KASHMIREE told UC-l that she and her husband had been told by a fellow shop
owner that UC-l was an ATF agent. She said that she did not believe this, but wanted
UC-l to promise he was not the police. UC-l so promised. UC-l indicated to F.
KASHMIREE that he understood her apprehension about having untaxed cigarettes in
USAO #2011R00403
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their store and offered to deal directly with their "customer." F. KASHMIREE indicated
that she was fine with the current arrangements but was worried that UC-I might be the
police.
81. On July 10, 2009, UC-I called KASHMIRI to let him know he would be stopping by to
collect the balance owed from the July 8, 2009, deal. KASHMIRI indicated that he may
not be there when UC-I arrived but he would make sure the money was waiting for him.
KASHMIRI then asked UC-I what kind of cigarettes he had and UC-l indicated all he
had was 300 cartons of untaxed Parliament Light 100's and 20 cases of untaxed Newport
Regulars. KASHMIRI said that he did not think his customers would want these kinds of
cigarettes and the conversation ended. Five minutes later, KASHMIRI called UC-I and
.
told him not to come empty handed and to bring the 300 cartons of Parliament Light
100's. They agreed to meet at KASHMIRI's store at 3:00 p.m. that afternoon.
82. At approximately 3 :00 p.m. on July 10, 2009, UC-l and UC-3 arrived at 340 Quick Mart
and met with F. KASHMIREE who was working as a clerk behind the counter. UC-I
infonned F. KASHMIREE that they were there to pick up the prior debt plus drop off the
shipment of Parliament Light 100's. F. KASHMIREE gave UC-l $3,400 from the cash
register then went around back to open the door so that UC-l and UC-3 could bring in the
cigarettes. In total, the UC's delivered 300 cartons of untaxed cigarettes. After the
delivery was complete, the UC's were joined by KASHMIRI who had just arrived at the
store. UC-I showed KASHMIRI the delivery and then presented him with an invoice.
KASHMIRI pulled $9,100 in U.S. currency from his pocket and gave it to UC-1. UC-l
told KASHMIRI when the next shipment of cigarettes had arrived.
83. On July 15, 2009, KASHMIRI called UC-l and asked ifhe had any Parliament Light
USAO #2011R00403
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cigarettes in stock to which UC-l replied that he did. KASHMIRI indicated that he would
corne by the warehouse later that evening to pick them up.
84. At approximately 6:20 p.m. on July 15,2009, KASHMIRI arrived at the warehouse in a
full sized 1995 GMC Conversion Van (VA license plate ) accompanied by
KASHMIRI told UC-l that he wanted all the Parliament Lights and
"everything else that he had asked for." UC-l told KASHMIRI that the cost would be
over $40,000 and he wanted to know how much KASHMIRI had brought with him.
KASHMIRI had open the pink lunch bag that he had brought in with
him. Inside, UC-l observed numerous bundles of U.S. currency. UC-l counted $49,000
in U.S. currency. KASHMIRI also offered an alleged $1000 scratched off winning
lottery ticket as payment in order to bring the total proceeds to $50,000. After
confirming the total amount of cash, KASHMIRI, and UC-l went into
the cigarette storage area of the warehouse to examine the inventory. After selecting the
cartons of cigarettes for purchase, KASHMIRI opened the rear doors of his van and
retrieved a new box of large black trash bags. UC-l then assisted KASHMIRI and
in filling the trash bags with the cartons of cigarettes and loading them
into KASHMIRI's van. In total, KASHMIRI purchased 1980 cartons of untaxed
cigarettes for which he paid $49,080 in U.S. currency, plus a $1000 winning Virginia
lottery ticket. After the deal was consunnnated, KASHMIRI asked UC-l when he could
get more cigarettes because "his customer" was coming down and he would want more
Parliaments. UC-l told KASHMIRI that he could corne the following day.
85. On July 16,2009, KASHMIRI arrived at the undercover warehouse in his 1995 GMC
Conversion van accompanied by (identity unknown). UC-l met with
USAO #2011 R00403
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KASHMIRI and told him that they needed to settle the money issue first. At this point,
KASHMIRI handed UC-2 a large quantity of U.S. currency and while UC-2 counted the
money, the others went into the cigarette cage to inspect the inventory. While in the
cage, KASHMIRI indicated that he wanted a variety of Parliaments and Marlboro
cigarettes. UC-3 assisted him in putting his selected product into black trash bags and
then loading them into KASHMIRI's van. During this process, UC-l asked KASHMIRI
if his client would prefer to come himself to the warehouse to which KASHMIRI replied
that "his customer" did not want to come to the warehouse saying that he did not trust
UC-l. In total, KASHMIRI purchased 1800 cartons of untaxed cigarettes for which
KASHMIRI paid $45,700 in U.S. currency. KASHMIRI asked when he could return to
the warehouse to purchase more cigarettes and UC-l told him the following Saturday.
86. On July 18,2009, at approximately 9:30 a.m., KASHMIRI arrived at the undercover
warehouse operating his 1995 GMC Conversion Van, accompanied by
was carrying a shopping bag filled with U.S. currency which he gave to
UC-2 to count. While UC-2 was counting the money, UC-I, UC-3, KASHMIRI and
went to the cigarette cage to inspect the inventory. After being advised
that there were two pallets of Marlboro Lights and a pallet of Marlboro Red, all untaxed,
KASHMIRI said that he would 'take it all." The cartons of cigarettes were then placed
into large black trash bags and loaded into KASHMIRI's van. While they were loading
the product in the van, UC-I asked KASHMIRI if he had driven the previous day's order
to New York City. KASHMIRI responded that "the customer" came to his store and
picked them up, so he did not have to drive to New York City. In total, KASHMIRI
purchased 2460 cartons of untaxed cigarettes for which he paid $57,820 in U.S. currency.
USAO #2011R00403
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87. On July 22,2009, at approximately 8:00 a.m., KASHMIRI arrived at the undercover
warehouse operating his 1995 GMC Conversion Van, accompanied by
KASHMIRI told UC-2 that he wanted Parliaments and Marlboros. KASHMIRI selected
some cartons which were placed in black garbage bags and loaded in his van.
KASHMIRI also selected approximately 20 additional cases of cigarettes and asked UC-
I if he would deliver them to his store later that day. In total, KASHMIRI purchased
2160 cartons of untaxed cigarettes for which KASHMIRI paid $52,650 in U.S. currency.
With the money issue settled UC-I indicated he would deliver the remaining cigarettes to
KASHMIRI's store later that afternoon. KASHMIRI and then
departed.
88. On July 22,2009, at approximately 12:00 p.m. UC I and UC-3 arrived at KASHMIRI's
store in Berryville, Virginia to deliver the untaxed cigarettes promised earlier in the day.
Upon arrival UC-l called KASHMIRI who told UC-I that he was on the way back to the
store but to make the delivery and that his wife had the money to pay him. During this
conversation, KASHMIRI instructed UC-l to leave three cases of the Marlboro Menthols
and eleven cases of the Marlboro Red. directed the UCs to the back of
the store. In total, KASHMIRI purchased 840 cartons of untaxed cigarettes. After the
delivery, UC-I met with F. KASHMIREE who asked UC-l if he was going to be able to
bring her the Parliament Light 100's that KASHMIRI had left at the warehouse because
"the customer really needed them" and because "the customer was coming to pick them
up that night." UC-I replied that KASHMIRI was supposed to have picked those
cigarettes up himself and that they would not be able to make a second delivery this day.
F. KASHMIREE then asked UC-l what she owed them for the day's delivery and UC-I
USAO #20JIR00403
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responded $20,570. F. KASHMIREE left the area for a short while and ultimately
handed the agents $20,570 in U.S. currency.
89. On July 24,2009, KASHMIRI and arrived at the undercover
warehouse in KASHMIRI's GMC Conversion Van and met with UC-l and UC-3. UC-l
inquired ofKASHMIRI ifhe had brought money to which KASHMIRI replied that he
had brought it all. KASHMIRI directed to retrieve a bag from the front
seat of the van. did as instructed and returned with a bag full of U.S.
currency and handed it to UC-l to count. While UC-l counted the money UC-3,
KASHMIRI and went to the cigarette cage to select the product. After
the selections were made, the three of them placed the selected cigarettes into a black
trash bag and then into KASHMIRI's van. In total, KASHMIRI purchased 1890 cartons
of untaxed cigarettes for which he paid $45,500 in U.S. currency. KASHMIRI and
then exited the warehouse area.
90. On July 27, 2009, KASHMIRI and arrived at the undercover
warehouse in KASHMIRI's GMC Conversion Van and met with UC-l and UC-3. UC-l
asked KASHMIRI what he wanted to purchase and KASHMIRI replied "I want it all"
(referring to an earlier request for 3000 cartons of Marlboro Lights, 3000 cartons of
Marlboro Red, and 3000 cartons of Parliament Light cigarettes). At this point,
KASHMIRI received a call on his cell phone. UC-l was able to determine by
overhearing the conversation that KASHMIRI was talking to someone about filing a
cigarette order. U C-l went over to speak with and asked if he had
brought the money. responded by retrieving a small blue Costco lunch
cooler from the van. opened the cooler displaying a large quantity of
USAO #2011R00403
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U.S. currency. In the cigarette cage area of the warehouse, UC-3 assisted KASHMIRI in
wrapping cases of untaxed cigarettes into black trash bags and loading them into
KASHMIRI's van. In total, KASHMIRI selected 2880 cartons of untaxed cigarettes for
purchase for which KASHMIRI paid $74,740 in U.S. currency. KASHMIRI then
indicated he would be back the following day to pick up more cigarettes.
91. At the conclusion of the July 27,2009, controlled sale, surveillance units followed
KASHMIRI as he left the undercover warehouse and entered Interstate 81 Northbound.
KASHMIRI exited at Exit 323 and pulled into the State Line Exxon gas station and, after
stopping at the pumps, travelled to the back of the store. Surveillance units then observed
KASHMIRI load a black trash bag containing an item that left a rectangular impression
through the plastic, which appeared to be at least one master case (60) cartons of
cigarettes into the trunk of a black Honda sedan bearing Virginia registration
The driver of the Honda appeared to be of middle eastern descent but could not be
identified. Surveillance units then followed the black Honda as it traveled back to the
340 Quick Mart located at 304 N. Buckmarsh Street, Berryville, Virginia. Units
observed the driver of the black Honda and another individual, who had come from
inside the store, carry several black trash bags from the black Honda and take them into
the side entrance of the store.
92. On July 28, 2009, KASHMIRI and arrived at the undercover
warehouse in KASHMIRI's GMC Conversion Van and met with UC-l and UC-3.
retrieved a red nylon bag containing U.S. currency from the van and
handed it to UC-l to count. While UC-l was counting the money, UC-3 and KASHMIRI
went to the cigarette cage to select cigarettes for purchase. After selecting the cigarettes,
USAO #2011R00403
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UC-3, KASHMIRI and began to place the cases of cigarettes into black
trash bags and then load them into the van. While in the process of loading the cigarettes,
KASHMIR! receive a call on his cellular phone. Although the undercover agents did not
know to whom KASHMIR! was speaking, they heard KASHMIR! tell the caller what he
was in the process of purchasing and when he could deliver the cigarettes to them. In
total, KASHMIR! purchased 2820 cartons of untaxed cigarettes for which KASHMIRI
paid $60,000 in U.S. currency. Prior to leaving the warehouse, KASHMIR! told UC-l
that he wanted UC-I to deliver 3000 cartons ofParliarnent Lights, 2000 cartons of
Marlboro Lights and 1200 cartons of Marlboro Red 100's to his store. UC-l indicated
that he would be able to make such a deliver within a couple of days.
93. On July 30, 2009, UC-l and UC-3 arrived at KASHMIR!'s store in their undercover
delivery truck with 80 master cases of untaxed cigarettes earlier ordered by KASHMIR!.
At KASHMIRI's direction, and with his assistance, the cigarettes were loaded in the back
storage room. In total, KASHMIRI took possession of 4800 cartons of untaxed cigarettes
for which KASHMIR! paid $109,900 in U.S. currency. After the cigarettes were
unloaded, UC-I asked KASHMIR! when his "guy" was corning to get the cigarettes to
which KASHMIR! replied that the guy was corning that night and again in the morning.
UC-l remarked that "that that was a lot of driving corning from New York" to which
KASHMIR! responded "they are corning from Rhode Island." KASHMIR! then asked
UC-l ifhe could bring him more cigarettes that night or the next day, but UC-l said that
he could not as he was going out of town. KASHMIR! complained that he needed them
for his customer so they agreed that KASHMIR! would come to the UC's warehouse at
5:00 p.m. to pick up more cigarettes.
USAO #2011R00403
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94. On July 30, 2009, at approximately 5:00 p.m., KASHMIRI and an unknown middle-
eastern male (later identified as Malik ASHRIF) arrived at the undercover warehouse in
KASHMIRI's conversion van. Upon arrival, UC-3 o p e n e d ~ h e bay door allowing
KASHMIRI to back his van into the loading bay. KASHMIRI exited the van and
introduced the unknown male to UC-3 as "Malik." KASHMIRI provided a child's lunch
bag to UC-I which contained in U.S. currency. UC-I figured out that KASHMIRI could
purchase 8 cases of cigarettes for the amount of each provided and all four men went into
the bay area. After some negotiation, UC-I agreed that KASHMIRI could take 12 cases
of cigarettes. In total, KASHMIRI purchases 750 cartons of untaxed cigarettes for which
KASHMIRI paid $20,000 in U.S. currency. After placing the cigarettes into his van,
KASHMIRI received a call from an individual whom he later identified as "one of his
customers." After the phone call KASHMIRI asked UC-I ifhe could place an order for
500 cartons of untaxed export only Capri Menthol Lights. UC-1 said he would try and
get this. KASHMIRI then went into the bathroom to clean up. UC-1 then struck up a
conversation with ASHRIF. ASHRIF said that he was from New York and operated a
store on Long Island. ASHRIF acknowledged buying cigarettes from KASHMIRI. UC-
1 jokingly told ASHRIF that he could get him a better price than KASHMIRI. UC-1 then
gave ASHRIF his contact information.
95. On August 5, 2009, at approximately 10:20 a.m., KASHMIRI and
arrived at the undercover warehouse in KASHMIRI's GMC conversion van.
KASHMIRI told UC-1 what he wanted and while UC-I began pulling the cases
began bagging and loading the cases of cigarettes into the van. After
loading all of the cigarettes, UC-1 told KASHMIRI that the total bill came to $79,242.
USAO #20J J R00403
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KASHMIRI produced a black plastic bag containing $80,000 in U.S. currency. Instead
of getting change, KASHMIR! asked UC-l if he could get an additional case of
cigarettes. In total, KASHMIR! purchased 3057 cartons of untaxed cigarettes for which
KASHMIR! paid $80,000 in U.S. currency.
While the transaction was wrapping up, KASHMIR! told UC-l that he does not deposit
his cigarette money into his business account explaining that he does not want to mix the
monies. KASHMIR! further noted that he uses the same bank for the accounts, (Bank of
Clarke County). UC-l agreed to make a delivery of cigarettes to KASHMIR! the
following day.
96. On August 6, 2009, UC-l made a delivery of cigarettes to KASHMIR! at his store
located at 340 Quick Mart in Berryville, Virginia. UC-I first met with
who indicated that KASHMIRI was not at the store. UC-l then called KASHMIR! on his
cell phone. KASHMIR! asked UC-l what he had brought to the store and, after being
told by UC-l what UC-l had, KASHMIR! said he would take everything on the truck
and that would get him payment. UC-l and were
then joined by an unknown middle-eastern male, later identified by as
"Ali" (Farman AU) and all three unloaded the truck and placed the cigarettes into the
storage room. In total, KASHMIR! purchased 3720 untaxed cigarettes for which Ali paid
$70,050 in U.S. currency. UC-l told that he would be on vacation for
about a week, but that he would contact KASHMIR! when he returned.
97. On August 17, 2009, KASHMIR! and arrived at the undercover
warehouse in KASHMIR!'s conversion van for the purpose of purchasing cigarettes. In
total, KASHMIR! took possession of3000 cartons of untaxed cigarettes. While the
USAO #2011R00403
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cigarettes were being loaded, KASHMIRI instructed to give UC-2 a
small blue cooler containing a large sum of U.S. currency. KASHMIRI paid $90,000 in
U.S. currency for the cigarettes.
98. On August 17, 2009, at approximately 12:30 p.m., KASHMIRI and
returned to the undercover warehouse to pick up a second load of untaxed cigarettes.
KASHMIRI was again operating his GMC conversion van. Working from the order list
KASHMIRI had provided him earlier in the day, UC-I began putting together
KASHMIRI's order. In total, KASHMIRI purchased 3180 cartons of untaxed cigarettes
for which KASHMIRI paid $61,500 in U.S. currency.
99. On August 21, 2009, KASHMIRI and arrived at the undercover
warehouse in KASHMIRI's conversion van. gave to UC-I a small
blue cooler containing a large sum of U.S. currency to count while KASHMIRI,
and UC-3 went into the bay area to select the cigarettes for purchase.
In total, KASHMIRI loaded 3120 cartons of untaxed cigarettes in his van. KASHMIRI
paid $100,200 in U.S. currency for these cigarettes. KASHMIRI then gave UC-I a list of
what he wanted delivered later that day, which was approximately 70 cases of untaxed
cigarettes.
100. On August 21,2009, UC-I arrived at KASHMIRI's store, The 340 Quick Mart. Upon
his arrival UC-I met with F. KASHMIREE and asked her if her husband was available.
F. KASHMIREE indicated that he was away "praying," but that she could take care of
what UC-I needed. At about that same time, and ALI came into the
store. With help from and ALI, UC-I began unloading the cigarettes
and putting them in the storage room. In total, UC-I delivered 6960 cartons of untaxed
USAO #2011R00403
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cigarettes for which KASHMIR! paid $110,000 in U.S. currency. UC-I thanked
and ALI and told them to have KASHMIRI call him when he returned.
101. On August 27,2009, KASHMIR! and arrived at the undercover
warehouse in KASHMIR!'s conversion van. UC-I told KASHMIR! that they needed to
discuss the money still owing from the previous deal. KASHMIR! had
produce a small blue soft sided cooler from the van which contained $110,000 in U.S.
currency bound bundles of $20 bills. KASHMIR! and selected
numerous cases of cigarettes for purchase and began to place them in black trash bags
then load them into KASHMIR!' s van. During the bagging and loading process,
KASHMIRI received multiple phone calls. It appeared that KASHMIR! was talking to
someone to whom he was supplying cigarettes. In total, KASHMIR! purchased 3060
cartons of cigarettes for which KASHMIR! paid $119,060 in U.S. currency. Before
leaving, KASHMIR! told UC-I that he would be back the following day to get some
more cigarettes.
102. On August 28, 2009, KASHMIR! and arrived at the undercover
warehouse in KASHMIR!'s conversion van. KASHMIR! had retrieve
the money from the van and give it to UC-2 to count while KASHMIRI when to the
cigarette cage to pick out cases of cigarettes for purchase. KASHMIR! told UC-I what
he wanted and the UC-I brought the product to the van. UC-I and then
bagged and loaded the cases into the van. In total, KASHMIR! purchased 2310 cartons
of untaxed cigarettes and 600 cartons of taxed cigarettes for which KASHMIR! paid
$74,020 in U.S. currency. After having loaded the cigarettes in the van, UC-I asked
KASHMIR! if he had to deliver the cigarettes to anyone or if they were waiting for him
USAO #20IlR00403
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at the store. KASHMIRI replied that "they" were coming down to his store later that
night.
103. On September 2,2009, KASHMIRI and arrived at the undercover
warehouse in KASHMIRI's conversion van. After a discussion between UC-1 and
KASHMIRI regarding what cigarettes were available for sale, KASHMIRI indicated he
needed to call his customer before they could complete their transaction. During his
phone conversation KASHMIRI was preparing an order for various brands of cigarettes
and on top of the list the name "Michael" was written. In total, KASHMIRI purchased
120 cartons of taxed cigarettes and 2730 cartons of untaxed cigarettes for which
KASHMIRI paid $69,860 in U.S. currency. Prior to departing, KASHMIRI made
arrangements to return to following date to make another purchase.
104. On September 3, 2009, KASHMIRI and arrived at the undercover
warehouse in KASHMIRI' s conversion van. presented U C-1 a small
blue cooler filled with U.S. currency so that UC-1 could begin to count the money while
KASHMIRI could select cigarettes for purchase. UC-3 and UC-4 assisted
in bagging and loading the cases of cigarettes in KASHMIRI's van. In total,
KASHMIRI purchased 2550 cartons of untaxed cigarettes for which KASHMIRI paid
$50,500 in U.S. currency. KASHMIRI indicated that he would return the following day
to pick up more cigarettes.
105. After the above transaction, undercover officers conducted surveillance on KASHMIRI's
van after it left the undercover warehouse. The van was observed returning to
KASHMIRI's 340 Quick Mart in Berryville, Virginia. Shortly after returning to the
store, an unidentified middle-eastern male arrived in a black Honda sedan (Virginia
USAO #2011R00403
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registration ). This unidentified male, KASHMIRI, and ALI
joined in loading black trash bags into the van from the store. "ALI and the unidentified
male are then seen leaving the store in the van. Surveillance ofthe van continued as it
traveled Northbound on 1-81. Surveillance ended as the van entered Maryland.
warehouse in KASHMIRI's conversion van. While KASHMIR! was selecting cigarettes
for purchase, UC-I was counting the money had provided to him in a
blue cooler. UC-4 assisted in bagging and loading the cigarettes that
KASHMIRI had selected into KASHMIRI's van. In total, KASHMIR! purchased 2127
cartons of untaxed cigarettes for which KASHMIRI paid $58,740 in U.S. currency.
KASHMIRI indicated to UC-l that he would return later to purchase additional
cigarettes.
warehouse in KASHMIRI's conversion van. handed UC-l a small blue
cooler containing U.S. Currency to be counted while KASHMIRI selected cigarettes for
purchase. In total, KASHMIRI purchased 2730 cartons of untaxed cigarettes for which
KASHMIRI paid $50,000 in U.S. currency. After the transaction was complete, UC-l
told KASHMIRI that he could get him some export only Newports ifKASHMIRI was
interested. UC-l explained to KASHMIRI that it was highly illegal to possess or sell
these types of cigarettes in the United States. KASHMIRI said he understood but still
wanted to get some. UC-I said that he would obtain a sample for KASHMIRI to
examine. KASHMIRI said that was fine, but asked UC-I to get him a larger quantity
because he really wanted them.
USAO #2011R00403
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warehouse in KASHMIRI's conversion van. KASHMIRI was shown several cases of
untaxed, export only Newport cigarettes. These cartons were wrapped in cellophane and
the wrappers were marked "for export only." The cartons were inside cardboard boxes
which had a tissue company logo on the outside, apparently used to disguise the nature of
its contents. UC-l reminded KASHMIRI that it was illegal to possess or resell these
cigarettes. UC-l explained to KASHMIRI that he had obtained these cigarettes at his
request and that it was KASHMIRI's decision if he wanted to purchase them or not.
Without hesitation, KASHMIRI indicated that he would buy the cigarettes and that he
was disappointed that UC-l did not have more. UC-l told him he could get more at
which point KASHMIRI placed an order for 40 cases of Newport Kings and Newport
100 (export only). UC-l said he would place the order. After that discussion,
KASHMIRI purchased 1200 cartons of untaxed cigarettes, 300 cartons of which were
"export only." In total, KASHMIRI paid $40,900 in U.S. currency for this shipment of
cigarettes.
warehouse in KASHMIRI's conversion van. UC-l noticed that when the van arrived
there were already cigarettes inside. KASHMIRI explained that these were the Newport
100s he had previously purchased and that he wanted to return them because they were
"soft packs" not box. UC-l agreed to give KASHMIRI credit for the cigarettes. There
were a total of 240 cartons returned. After returning the "soft pack" cigarettes,
KASHMIRI selected a number for purchase. In total, KASHMIRI purchased 1620
cartons of untaxed cigarettes for which KASHMIRI paid $30,000 in U.S. currency.
USAO #2011 R00403
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KASHMIRI indicated that he would return later to make additional purchases.
warehouse in KASHMIRl's conversion van. In total, KASHMIRl and
purchased 2460 cartons of untaxed cigarettes for which they paid $44,000 in U.S.
currency.
Ill. On September 23, 2009, KASHMIRI and arrived at the undercover
warehouse in KASHMIRl's conversion van. KASHMIRl told UC-I that he first wanted
to settle up on what was due for the September 22,2009 transaction, $12,050.
KASHMIRl handed UC-I a blue cooler containing $40,000 in U.S. currency.
KASHMIRI then began to select cigarettes for purchase. In total, KASHMIRl and
purchased 2770 cartons of untaxed cigarettes for which they paid
$58,280 in U.S. currency.
warehouse in KASHMIRl's conversion van. Prior to selecting cigarettes for purchase,
KASHMIRl settled his debt prior transactions. After the debt was paid by KASHMIRl to
UC-I, KASHMIRl selected numerous cartons of untaxed cigarettes and loaded them into
his van. In total, KASHMIRI purchased 3030 cartons of untaxed cigarettes for which
KASHMIRl paid $56,800 in U.S. currency.
1l3. On September 30, 2009, arrived at the undercover warehouse in
KASHMIRl's conversion van. was accompanied by an unknown
middle-eastern male. indicated to UC-J that he had a brought a list of
cigarettes that he needed to purchase and provided that list to UC-I. The list contained
two different orders, one for "Mick" and one for "Nancy." In total,
USAO #2011R00403
35
purchased 2160 cartons of untaxed cigarettes for which he paid $60,000 in u.s. currency.
The unknown middle-eastern male assisted in loading the cigarettes
into the van.
114. On October I, 2009, KASHMIRI and arrived at the undercover
warehouse in KASHMIRI's conversion van. In total, KASHMIRI and
purchased 3300 cartons of untaxed cigarettes for which they paid $70,000 in U.S.
currency.
115. Later in the afternoon on October 1, 2009, KASHMIRI and returned to
the undercover warehouse in KASHMIRI's conversion van. In total, KASHMIRI and
purchased 2100 cartons of untaxed cigarettes. KASHMIRI handed
UC-l a pink cooler containing $50,000 in U.S. currency as payment.
116. On October 6, 2009, KASHMIRI and arrived at the undercover
purchased 2580 cartons of untaxed cigarettes, all of which were bagged and loaded in the
van. KASHMIRI gave to UC-4 $67,000 in U.S. currency as payment.
117. On October 7,2009, KASHMIRI arrived alone at the undercover warehouse in his
conversion van. KASHMIRI came into the warehouse carrying a blue cooler containing
several bundles of money which he gave to U C-I. Shortly after his arrival, KASHMIRI
received a phone call from an individual he referred to as "Nancy" and began taking a
cigarette order from the individual. In total, KASHMIRI purchased 570 cartons of
untaxed cigarettes. KASHMIRI presented UC-l with $57,830 in U.S. currency as
payment.
118. Early on October 8, 2009, KASHMIRI placed a phone call to UC-l in which KASHMIRI
USAO #2011 R00403
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requested that 8 cases of cigarettes be delivered to him at his store located at Route 340 in
Berryville, Virginia. Later that afternoon, UC-I and UC-4 loaded the requested
cigarettes into UC-I's vehicle and set out to deliver them to KASHMIRl. Upon arrival at
the store, UC-I and UC-4 were met by and advised by
that KASHMIRI was not at the store but that he could take delivery ofthe
cigarettes. UC-I, UC-4 and unloaded the cigarettes into the back room
ofKASHMIRl's business. In total, 480 cartons of untaxed cigarettes were delivered.
gave UC-I $10,000 in U.S. currency as payment.
119. On October 13,2009, KASHMIRl and arrived at the undercover
purchased 3000 cartons of untaxed cigarettes. KASHMIRl gave to UC-I $69,400 in U.s.
currency as payment.
120. On October 14,2009, KASHMIRl and arrived at the undercover
purchased 3360 cartons of untaxed cigarettes. KASHMIRl gave to UC-I $90,000 in U.S.
121. On October 15, 2009, KASHMIRl and arrived at the undercover
warehouse in KASHMIRl's conversion van. KASHMIRl and arrived
at the undercover warehouse in KASHMIRI's conversion van. In total, KASHMIRl and
purchased 3270 cartons of untaxed cigarettes. KASHMIRl gave to
UC-I $80,980 in U.S. currency as payment.
122. On October 20,2009, and arrived at the undercover
warehouse in KASHMIRl's conversion van. After selecting cigarettes for purchase,
USAO #20JIR00403
37
and loaded the product into the van. In total, they purchased
3300 cartons of untaxed cigarettes. gave to UC-l $75,000 in U.S.
123. On October 21, 2009, and arrived at the undercover
warehouse in KASHMIRI's conversion van. While at the warehouse,
made several calls to individuals identified as "Mike" and "Nancy." UC-loverheard
stating that he would make delivery to "Nancy" and that he was getting
her "Thursday and Friday" orders ready. In total, and
purchased 2580 cartons of untaxed cigarettes. gave UC-l $68,970 in
U.S. currency as payment. Soon after leaving, called UC-l and
indicated that he wanted to come back and get two more cases of Marlboro Ultras. UC-l
indicated that he could accommodate returned for
the two cases and paid UC-l $3000.
warehouse in KASHMIRI's conversion van. In total, and
purchased 3300 cases of untaxed cigarettes. gave to UC-l $82,000 in
U.S. currency as payment.
warehouse in KASHMIRI's conversion van. delivered to UC-l a blue cooler
full of U.S. currency. In total, and purchased 3390 cartons
of untaxed cigarettes. gave to UC-l $80,000 in U.S. currency as
payment.
USAO #2011R00403
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warehouse in KASHMIRI's conversion van. delivered to UC-I a blue
cooler full of U.S. currency. In total, and purchased 3480
cartons of cigarettes. While the purchased cigarettes were being loaded in the van,
indicated that the cigarettes were going to be delivered to New York.
gave to UC-I $93,010 in U.S. currency as payment.
warehouse in KASHMIRI's conversion van. delivered to UC-I a blue
cooler full of U.S. currency. In total, and purchased 3600
cartons of untaxed cigarettes. gave to UC-I $77,525 in U. S. currency
as payment. UC-I told that he was going to have to start paying the
invoice in full before he leaves the warehouse. reassured UC-I that he
would bring his account up to date during the next visit.
warehouse in KASHMIRI's conversion van. delivered to UC-I a blue cooler
full of U.S. currency. In total, and purchased 2700 cartons
of untaxed cigarettes. gave to UC-I $77,800 in U.S. currency as
payment.
129. On November 3, 2009, and arrived at the undercover
warehouse in KASHMIRI's conversion van. confirmed with UC-I that
UC-I would indeed sell to the untaxed cigarettes for $25.50 a carton is
discussed by UC-I and F. KASHMIREE in a previously recorded conversation. UC-I
said that he would sell for this price, but only on this day. In total, and
purchased 3060 cartons of cigarettes. gave to UC-I $80,000
USAO #20JIR00403
39
in U.S. currency as payment.
130. On November 4,2009, and arrived at the undercover
warehouse in KASHMIRI's conversion van. delivered to UC-I a bag
full of U.S. currency. In total, and purchased 2910 cartons of
untaxed cigarettes. gave to UC-l $78,000 in U.S. currency as payment.
warehouse in KASHMIRI's conversion van. delivered to UC-l a bag full of
U.s. currency. In total, and purchased 4920 cartons of
untaxed cigarettes. gave to UC-l $96,950 in U.S. currency as payment.
132. Later on in the afternoon of November 5, 2009, and ASHRIF arrived at
the undercover warehouse in KASHMIRI's conversion van. delivered
to UC-l a soft-sided cooler full of U.S. currency. In total, and ASHRIF
purchased 2160 cartons of cigarettes. gave to UC-l $50,000 in U.S.
133. After this last sale on November 5,2009, surveillance was conducted on the van driven
by as it left the undercover warehouse. The van, driven by
returned to the 340 Quick Mart, Berryville, Virginia. Shortly after its arrival,
agents observed a Gold Toyota Sienna minivan bearing New York registration
pull into the parking lot of the 340 Quick Mart. The Toyota minivan was driven by
an unidentified Asian male. The unidentified Asian male walked into the store and
returned a short time later with a black garbage bag with the outline of rectangular
objects inside. The unidentified Asian male then placed the garbage bag into his minivan
and left the area.
USAO #2011R00403
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warehouse in KASHMIRI's conversion van. delivered to UC-I a bag full of
U.S. currency. III total, and purchased 3600 cartons of
cigarettes. gave to UC-I $89,000 in U.S. currency as payment.
135. On November 12, 2009, and arrived at the
undercover warehouse in KASHMIRI's conversion van. delivered to UC-I a
blue cooler full ofU. S. currency. In total, and purchased
3180 cartons of untaxed cigarettes. gave to UC-I $80,000 in U.S.
136. Also on November 12, surveillance teams were set up to monitor the white
conversion van operated by to determine where the cigarettes were
being taken. After the transaction, the surveillance units followed to
the 340 Quick Mart store in Berryville, Virginia. After a brief stop, the van departed the
store and proceeded to Interstate 81 Northbound. The van traveled to the vicinity of 148
th
St. and 58
th
Avenue, Flushing, New York where units observed two males standing
outside the van with the back doors open. The men were believed to be
and Units followed the van back to Main Street where they lost track of it.
The units were unable to determine if the cigarettes were delivered at the Flushing
location. The GPS tracking device for this time period indicates multiple stops in the
New York area.
137. On November 18,2009, and arrived at the undercover
warehouse in KASHMIRI's conversion van. delivered to UC-I a black and
red backpack style bag full of U.S. currency. In total, and
USAO #2011R00403
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purchased 2580 cartons of untaxed cigarettes. gave to UC-1 $70,000 in
warehouse in KASHMIR!' s conversion van. gave to UC-4 currency to
begin counting while and selected cigarettes for purchase. In
total, and purchased 1020 cartons of untaxed cigarettes.
gave to UC-4 $29,980 in U.S. currency as payment.
139. On November 24, 2009, UC-1 received a call from KASHMIR! asking ifUC-1 would
deliver to him a quantity of cigarettes. KASHMIR! told UC-1 that had
recently left for vacation in Pakistan and he had no one to watch the store if he left. UC-1
agreed to make the delivery. Later that afternoon, UC-1 delivered 1020 cartons of
untaxed cigarettes. KASHMIR! gave to UC-1 $43,160 in U.S. currency as payment.
140. On December 1,2009, KASHMIR! and arrived at the undercover warehouse
in KASHMIRI's conversion van. KASHMIR! presented UC-1 with a blue lunch bag
containing U.S. currency. In total, KASHMIRI and purchased 3240 cartons of
untaxed cigarettes. KASHMIRI gave to UC-I $85,020 in U.S. currency as payment.
KASHMIRI indicated to UC-1 that he would return later in the day to purchase additional
cigarettes.
141. Later in the afternoon on December 1, 2009, KASHMIR! and arrived at the
undercover warehouse in KASHMIR!'s conversion van. KASHMIR! presented UC-l
with a bag containing U.S. currency. In total, KASHMIR! and purchased 2880
cartons of untaxed cigarettes. KASHMIR! had given to UC-1 $73,915 in U.S. currency
as payment.
USAO #2011 R00403
42
142. On December 3, 2009, KASHMIRI and arrived at the undercover warehouse
in KASHMIRl's conversion van. KASHMIRI presented UC-I with a bag containing
U.S. currency. In total, KASHMIRI and purchased 3360 cartons of untaxed
cigarettes. KASHMIRI gave UC-I $90,000 in U.S. currency as payment.
143. On December 8, 2009, KASHMIRI and arrived at the undercover warehouse
in KASHMIRI' s conversion van. KASHMIRI presented UC-I with a bag containing
U.S. currency. In total, KASHMIRI and purchased 3270 cartons of untaxed
cigarettes. KASHMIRI gave UC-I $82,700 in U.S. currency as payment.
144. On December IS, 2009, KASHMIRI and arrived at the undercover warehouse
in KASHMIRI's conversion van. In total, KASHMIRI and purchased 3130
cartons of untaxed cigarettes. The invoice presented to KASHMIRI indicated that
KASHMIRI was assuming a debt of $16,605 belonging to another.
3
KASHMIRI gave
UC-I $97,560 in U.S. currency as payment.
145. On December 17,2009, KASHMIRI and arrived at the undercover warehouse
in KASHMIRI's conversion van and a light blue Honda Pilot SUV with license number
KFM-8304. In total, KASHMIRI and purchased 4860 cartons of untaxed
cigarettes. KASHMIRI had gaveUC-I $124,920 in U.S. currency as payment.
146. On December 22,2009, KASHMIRI and F. KASHMIREE arrived at the undercover
warehouse in KASHMIRI's conversion van and a light blue Honda Pilot SUV with
license number KFM-8304. In total, KASHMIRl and F. KASHMIREE purchased 5100
cartons of untaxed cigarettes. Sixty-one cases were loaded into the van, twenty-one cases
3 On December 3, 2009, undercover agents sold 600 cartons of untaxed cigarettes. However, the agents
could not get to return their calls to make arrangements for repayment of the debt. Therefore, the agents,
having been told by both and KASHMIRI that they were related, told KASHMIRI that he could not purchase
anymore cigarettes from the agents unless "s debt was satisfied. Thus, KASHMIRI agreed to assume
"s debt in order to continue purchasing cigarettes from the agents.
USAO #2011R00403
43
were loaded into F. KASHMIREE's Pilot and three cases were left at the warehouse.
KASHMIRI gave UC-l $132,480 in U.S. currency as payment. During this transaction,
UC-l asked KASHMIRI where was to which KASHMIRI replied that "he"
was no longer with KASHMIRI and that he had "lost all his workers and was working
alone."
147. On December 29, 2009, KASHMIRI arrived at the undercover warehouse in his
conversion van. In total, KASHMIRI purchased 3360 cartons of untaxed cigarettes.
KASHMIRI gave UC-4 $99,960 in U.S. currency as payment. At the completion of the
transaction, KASHMIRI asked UC-4 if he would make a delivery of additional cigarettes
to KASHMIRI's store later in the afternoon. UC-4 agreed to the delivery.
148. Later in the afternoon on December 29, 2009, UC-410aded up his undercover vehicle
with untaxed cigarettes and transported them to KASHMIRI's store where he met with F.
KASHMIREE. F. KASHMIREE asked that the cigarettes be placed in the back storage
area of the store. In total, the KASHMIRI's purchased 1560 cartons of untaxed
cigarettes. F. KASHMIREE gave to UC-4 $32,510 in U.S. currency as payment. At the
conclusion of the transaction, F. KASHMIREE advised UC-4 that she was considering no
longer purchasing untaxed cigarettes from ********* due to the risks that were involved.
She further stated that she "tells herself every time that they will do just one more
purchase," and that "they need the money from the sale of untaxed cigarettes."
149. On December 30,2009, KASHMIRI arrived at the undercover warehouse in his
KASHMIRI gave UC-4 $70,000 in U.S. currency as payment. During the transaction,
KASHMIRI advised UC-4 that he had seen his brother and cousin leaving the warehouse
USAO #2011R00403
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prior to his arrival. KASHMIRI stated that his brother had been in contact with several
of his customers and tried to undercut him by $.50 a carton. KASHMIRI indicated that if
UC-l did not stop selling to his brother that KASHMIRI would no longer buy from
***********
150. Later on December 30, 2009, KASHMIRI arrived at the undercover warehouse in his
KASHMIRI gave UC-4 $50,000 in U.S. currency as payment.
151. On January 5, 2010, KASHMIRI and arrived at the undercover warehouse in
KASHMIRI's conversion van. In total, KASHMIRI and purchased 3540
cartons of untaxed cigarettes. KASHMIRI gave UC-I $108,940 in U.S. currency as
payment. During this transaction KASHMIRI told UC-I that he had recently lost all of
his helpers (referring to and ). UC-I asked
KASHMIRI to explain what he meant to which KASHMIRI said *, who used to
drive cigarettes to New York for KASHMIRI, had recently split off and had started
"running" cigarettes on his own. KASHMIRI indicated that he and * had a falling
out and * was now stealing KASHMIRI's "customers" up in New York. In
addition, KASHMIRI noted, his brother had also recently left
KASHMIRI and had joined up with in doing their own thing in "running"
cigarettes to New York. KASHMIRI indicated that he was making his own trips to New
York though he did not specify as to how many. KASHMIRI said that he still has
customers coming down to his store to get cigarettes so he does not have to always go to
New York. Finally, KASHMIRI asked UC-l to make a delivery of cigarettes to him,
noting that F. KASHMIREE would pay UC-l when he got there and that she would have
USAO #2011R00403
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all the money.
152. On January 5, 2010, UC-4 recovered an historical GPS tracker from the white conversion
van operated by KASHMIRI during the above noted transaction. The results of the GPS
track indicated that between December 30,2009 and December 31, 2009, the van made
two stops in Pennsylvania and three stops in New York.
153. Later in the afternoon on January 5, 2010, UC-l and UC-4loaded up an undercover
vehicle with untaxed cigarettes arid transported them to KASHMIRI's store where he met
with F. KASHMIREE. F. KASHMIREE asked that the cigarettes be placed in the back
storage area of the store. In total, the KASHMIRI and F. KASHMEREE purchased 1500
cartons of untaxed cigarettes. F. KASHMIREE gave to UC-l $37,950 in U.S. currency
as payment.
154. On January 12,2010, KASHMIRI arrived at the undercover warehouse in KASHMIRI's
KASHMIRI gave UC-4 $135,480 in U.S. currency as payment.
155. On January 14,2010, KASHMIRI arrived at the undercover warehouse in KASHMIRI's
KASHMIRI had given to UC-l $135,480 in U.S. currency as payment. After the
transaction was complete, KASHMIRI requested that UC-4 make a delivery of cigarettes
to his store in Berryville, Virginia later in the afternoon. UC-4 agreed to make the
delivery.
156. Later in the afternoon on January 14,2010, UC-4loaded up his undercover vehicle with
untaxed cigarettes and transported them to KASHMIRI's store where he met with F.
KASHMIREE. F. KASHMIREE asked that the cigarettes be placed in the back storage
USAO #2011 R00403
46
area of the store. In total, the KASHMIRI's purchased 60 cartons of untaxed cigarettes.
F. KASHMIREE gave UC-4 $3,360 in U.S. currency as payment.
157. On January 19,2010, KASHMIRI, and Malik ASHRIF
arrived at the undercover warehouse. ASHRIF arrived in a white Nissan Sentra,
registration number while the others arrived in KASHMIRI's conversion van.
KASHMIRI discussed with UC-I the fact that * was stopped by the
police and KASHMIRI wanted advice from UC-l about what he should do about the
$93,000 seized from * from law enforcement. KASHMIRI indicated that he had
contacted his lawyer about how to get the money back and that his lawyer did not know
the true origin of the money. UC-l noted that although he and KASHMIRI knew the
money was from illegal activity, no one else needed to know. KASHMIRI agreed. UC-l
asked ASHRIF ifhe was going to buy any cigarettes, as he had previously told UC-l that
he had a store on Long Island, New York. ASHRIF said no, that he was just visiting
KASHMIRI. After KASHMIRI selected his product for purchase he indicated that he
had another order that he wanted placed on a separate invoice. KASHMIRI indicated
that the second order was for ASHRIF. The cigarettes were then loaded in ASHRIF's
white Nissan. UC-I then observed ASHRIF hand a sum of money to
and in turn handed the money to UC-4 as payment for the four cases
loaded in the white Nissan. In total, KASHMIR! purchased 3780 cartons of untaxed
cigarettes while ASHRIF purchased 240 cartons of untaxed cigarettes. KASHMIR! paid
$98,280 in U.S. currency for the cigarettes.
158. On January 22,2010, KASHMIR! arrived at the undercover warehouse in his conversion
van. In total, KASHMIRI purchased 3420 cartons of untaxed cigarettes. KASHMIRI
USAO #2011R00403
47
gave to UC-I $91,800 in U.S. currency as payment.
159. On January 28,2010, KASHMIRI and arrived at the undercover
warehouse. KASHMIRI's arrived in his conversion van while arrived
in a silver Honda Pilot. In total, KASHMIRI and purchased 4920
cartons of untaxed cigarettes. KASHMIRI gave to UC-4 $127,920 in U.S. currency as
payment. After the transaction, UC-l asked ifKASHMIRI had seen or spoken to his
brother or because they still owed UC-l
$19,000. UC-l told KASHMIRI that if they did not pay their $19,000 debt that UC-I
would not sell any more cigarettes to KASHMIRI. KASHMIRI agreed to talk to "them"
about getting the debt paid.
160. On February 2, 2010, KASHMIRI and arrived at the undercover
warehouse. KASHMIRI arrived in his conversion van while arrived in
a silver Honda Pilot. In total, KASHMIRI and purchased 4830 cartons
of untaxed cigarettes. KASHMIRI gave UC-I $110,470 in U.S. currency as payment.
161. On February 2, 2010, UC-4 retrieved an historical GPS tracking device from
KASHMIRI's white conversion van which tracked the vehicle from December I, 2009
through December 3, 2009. The results of the GPS traqking indicate that during this time
period the van made multiple trips to New York, Pennsylvania, and West Virginia.
162. On February 4, 2010, KASHMIRI and arrived at the undercover
warehouse. KASHMIRI's arrived in his conversion van while arrived
in a silver Honda Pilot. In total, KASHMIRI and purchased 4590
cartons of untaxed cigarettes. KASHMIRI gave to UC-4 $130,000 in U.S. currency as
payment.
USAO #2011R00403
48
163. On February 17,2010, UC-4 retrieved an historical GPS tracking device from
KASHMIRI's white conversion van which tracked the vehicle from January 28,2010 to
February 3, 2010. The results of the GPS tracking indicate that during this time period
the van made multiple trips to New York and Pennsylvania.
164. On February 16, 2010, KASHMIR!, ALI and arrived at the undercover
warehouse in KASHMIRI's conversion van and a silver Honda Pilot. In total,
KASHMIRI, ALI and purchased 4920 cartons of untaxed cigarettes.
KASHMIRI gave to UC-4 $128,800 in U.S. currency as payment.
165. On February 18,2010, KASHMIRI, ALI and arrived at the undercover
warehouse in KASHMIRI's conversion van, a silver Honda Pilot and a 2010 Volkswagon
CC sedan. In total, KASHMIRI, ALI and purchased 3900 cartons of
untaxed cigarettes. KASHMIRI gave to UC-4 $102,670 in U.S. currency as payment.
166. On March 2,2010, ALI and arrived at the undercover warehouse in
KASHMIRI's conversion van and a grey Chevrolet conversion van. In total, ALI and
purchased 6000 cartons of untaxed cigarettes. gave
to UC-4 $157,920 in U.S. currency as payment.
167. On March 4,2010, ALI and arrived at the undercover warehouse in
KASHMIRI's conversion van and a grey Honda Pilot. In total, ALI and
purchased 4920 cartons of untaxed cigarettes. gave to UC-4
$130,000 in U.S. currency as payment.
168. On March 23, 2010, ALI arrived at the undercover warehouse in KASHMIRI's
conversion van. In total, ALI purchased 3600 cartons of untaxed cigarettes. ALI gave
to UC-I $95,150 in U.S. currency as payment. Prior to ALI's arrival at the warehouse,
USAO #2011R00403
49
UC-l had received a phone call from F. KASHMIREE in which she indicated that
KASHMIRI was in Pakistan and that she was trying to get cigarettes for a customer in his
absence. F. KASHMlREE was told the total would be $93,600. F. KASHMlREE
indicated that she would be sending ALI to pick them up.
169. On March 23, 2010, UC-l retrieved an historical GPS tracking device from
KASHMIRI's white conversion van which tracked the vehicle from March 2,2010 to
March 6, 20 I o. The results of the GPS tracking indicate that during this time period the
van made multiple trips to New York, Maryland, West Virginia, New Jersey and
Pennsylvania.
170. On March 30, 2010, ALI arrived at the undercover warehouse in KASHMIRI's
to UC-l $93,600 in U.S. currency as payment. Prior to ALI's arrival at the warehouse,
UC-l had received a phone call from F. KASHMlREE in which she indicated that she
was trying to get cigarettes for a customer. F. KASHMlREE was told the total would be
$93,600. F. KASHMlREE indicated that she would be sending ALI to pick them up.
After the transaction had been completed ALI indicated to UC-l that he was a cousin of
KASHMIR! and was loyal to him. ALI indicated that had stolen
KASHMIRI's customers in New York and was wrong for doing that. ALI added that
Bu*** and KASHMIRI's brother, Mohammad had gone out on their own
"running" untaxed cigarettes. Finally, ALI told UC-l that KASHMIR! pays very well for
driving cigarettes to New York, in fact, he was being paid $1,000 for each round trip. He
said that KASHMIR! took good care of him in return for his driving the cigarettes to New
York.
USAO #20IlR00403
50
171. On April 6, 2010, KASHMIRI and F. KASHMlREE arrived at the undercover warehouse
in KASHMIRI's conversion van and a silver Honda Pilot. In total, KASHMIRI and F.
KASHMlREE purchased 4350 cartons of untaxed cigarettes. KASHMIRI gave to UC-l
$109,980 in U.S. currency as payment.
172. On April 13, 20 I 0, KASHMIRI and F. KASHMlREE arrived at the undercover
warehouse in KASHMIRI's conversion van and a silver Honda Pilot. In total, the
KASHMIRI's purchased 4800 cartons of untaxed cigarettes. KASHMIRI gave to UC-I
$123,040 in U.S. currency as payment. F. KASHMIREE departed the warehouse with
cigarettes loaded in the Pilot while KASHMIRI left in the van which also contained
cigarettes.
173. On April 21, 2010, KASHMIRI and ALI arrived at the undercover warehouse in
KASHMIRI's conversion van and the silver Honda Pilot. In total, KASHMIRI and ALI
purchased 5040 cartons of untaxed cigarettes. KASHMIRI gave to UC-l $131,700 in
KASHMIRI's conversion van and a 210 Chevrolet Cargo van bearing Oklahoma
registration 893-FHJ and believed to be a rental vehicle. In total, KASHMIRI and ALI
purchased 7080 cartons of untaxed cigarettes. KASHMIRI gave to UC-l $185,600 in
U.S. currency as payment During the transaction, KASHMIRI advised UC-l that he was
making approximately $2-$3 per carton of cigarettes that he sold. KASHMIRI also
stated that he would assist in settling a debt owed to ********** by his cousin ifUC-I
would allow him CKASHMIRI) to come to the undercover warehouse four times per
week to load his van. KASHMIRI said that ifUC-l would allow him to do so, he would
USAO #2011 R00403
51
pay them $2,000 a week towards the debt owed by his cousin.
175. On May 11,2010, KASHMIR! and F. KASHMIREE arrived at the undercover
warehouse in KASHMIR!'s conversion van and the silver Honda Pilot. In total,
KASHMIRI and F. KASHMIREE purchased 5560 cartons of untaxed cigarettes.
KASHMIRI gave to UC-I $140,000 in U.S. currency as payment. During the
transaction, both KASHMIRI and F. KASHMIREE argued that they should not be
responsible for and debt. UC-I responded that it was
KASHMIRI's brother and who worked for KASHMIR! and that made it his
responsibility to get "someone" to repay the debt. KASHMIR! continued to argue but
agreed to pay something in order that he may continue to purchase untaxed cigarettes
from **********.
176. On May 25, 2010, KASHMIR! arrived at the undercover warehouse in KASHMIR!' s
conversion van. In total, KASHMIR! purchased 3090 cartons of untaxed cigarettes.
KASHMIRI gave to UC-I $85,640 in U.S. currency as payment. After the transaction,
KASHMIR! told UC-I that his "customer" in New York had been apprehended by the
police. KASHMIR! reported to UC-I that while he was in New York he had given his
white conversion van to his customer and at the time it had 13 cases of untaxed cigarettes
inside. KASHMIR! indicated that the police seized the cigarettes, but he got the van
back. Finally, KASHMIR! indicated that he was out the cost of those 13 cases of
cigarettes as he had not been paid for them at the time they were seized.
177. On June 16,2010, KASHMIRI arrived at the undercover warehouse in KASHMIRI's
conversion van. In total, KASHMIR! purchased 1740 cartons of untaxed cigarettes.
KASHMIRI gave UC-I $43,075 in U.S. currency as payment.
USAO #20lJR00403
52
178. On June 22, 2010, KASHMIRI arrived at the undercover warehouse in his conversion
van. In total, KASHMIRI purchased 3540 cartons of untaxed cigarettes. KASHMIRI
gave UC-l $91,700 in U.S. currency as payment.
179. On July 13,2010, KASHMIRI arrived at the undercover warehouse in his conversion
van. In total, KASHMIRI purchased 3776 cartons of untaxed cigarettes. KASHMIR!
gave to UC-l $96,650 in U.S. currency as payment. After the transaction, KASHMIRI
commented to UC-l that he needed to get out ofthe "business" (referring to selling
untaxed cigarettes). UC-l asked KASHMIRI ifhe had to drive the cigarettes to New
York to which KASHMIRI responded no, that "they" were corning to pick-up the
cigarettes from him.
180. On July 30, 2010, UC-l contacted KASHMIRI via cell phone and told him that he (UC-
1) had arranged the delivery of 60 cases of untaxed cigarettes from a wholesaler who
would only deliver the cigarettes to a truck stop inside the Virginia boarder and did he
want them. KASHMIRI indicated that he was interested in purchasing the cigarettes and
agreed to meet UC-l at the Flying J truck stop located at exit 323 on Interstate 81.
181. On August 4, 2010, KASHMIRI and ALI met UC-l at the Flying J truck stop as
previously arranged. KASHMIRI and ALI arrived in KASHMIRI's white conversion
van. UC-l then showed KASHMIRI and ALI the cargo van which contained 60 cases of
untaxed cigarettes. KASHMIRI delivered to UC-l $93,580 in U.S. currency as payment.
UC-l then gave the keys to the cargo van to KASHMIR! and told him to return the van
on August 7. In total, KASHMIRI took possession of3600 cartons of untaxed
cigarettes. At the conclusion of the transaction, KASHMIR! was seen leaving the scene
in the cargo van containing the cigarettes and ALI was seen leaving in KASHMIRI's
USAO #2011R00403
53
white conversion van. Agents observed the two vehicles then travel to the Clearbrook
Shopping Center in Clearbrook, Virginia where KASHMIRI and ALI were observed
transferring all of the cigarettes from the cargo van to the conversion van. Shortly
thereafter, agents observed a dark blue Honda vehicle pull up next to the cargo van.
Cases of cigarettes where then observed being transferred from the cargo van to the dark
blue Honda. The Honda then departed and headed northbound on Route II. The Honda
bore New York state tags and was registered to an individual residing in Flushing, New
York.
182. On August 10,2010, Malik ASHRIF arrived at the undercover warehouse in a white Ford
Cargo van. In total, ASHRIF purchased 600 cartons of untaxed cigarettes. ASHRIF
gave to UC-I $15,600 in U.S. as payment. During the transaction, ASHRIF indicated to
UC-I that he had not received a delivery of untaxed cigarettes from KASHMIRI in
several months and stated that when he was receiving cigarettes from KASHMIRI, which
had been purchased from the undercover warehouse, that KASHMIRI was charging $1
more per carton than the $26 per carton that KASHMIRI was being charged by the
agents. ASHRIF also confirmed that he had a store in Long Island, New York and that
he wished for the agents to make a delivery to him there. UC-I indicated to ASHRIF that
this could be accomplished.
183. On August 10,2010, KASHMIRI and ALI arrived at the undercover warehouse in
KASHMIRI's cargo van. In total, KASHMIRI and ALI purchased 3750 cartons of
untaxed cigarettes. KASHMIRI gave to UC-I $98,200 in U.S. currency as payment.
184. On August 26, 20 I 0, KASHMIRI and ALI arrived at the undercover warehouse in
KASHMIRI's cargo van. In total, KASHMIRI and ALI purchased 3600 cartons of
USAO #2011R00403
54
untaxed cigarettes. KASHMIRl gave UC-I $96,000 in U.S. currency leaving nothing
"
owed.
185. On August 31, 2010, KASHMIRl and ALI arrived at the undercover warehouse in
KASHMIRl's cargo van. In total, KASHMIRI and ALI purchased 3750 cartons of
untaxed cigarettes. KASHMIRl gave UC-I $97,500 in U.S. currency as payment.
warehouse in KASHMIRI's conversion van. In total, KASHMIRl and
purchased 3750 cartons of untaxed cigarettes. KASHMIRl gave UC-I $99,400 in U.S.
187. On October 5, 2010, KASHMIRI and ALI arrived at the undercover warehouse in
KASHMIRI's conversion van. In total, KASHMIRI and ALI purchased 3660 cartons of
untaxed cigarettes. KASHMIRI gave UC-I $93,600 in U.S. currency as payment.
During the course of the transaction, KASHMIRI was asked by UC-I ifhe was running
these cigarettes to New York to which KASHMIRl replied that he was not driving them
to New York that his customers were coming down from New York to pick them up.
188. On October 14, 20 I 0, KASHMIRI and arrived at the undercover
warehouse in KASHMIRI's conversion van. In total, KASHMIRl and
purchased 3772 cartons of untaxed cigarettes. KASHMIRI gave to UC-I $100,082 in
U.S. currency as payment. During the course of the transaction, KASHMIRI told UC-I
that he has 50 customers who purchase untaxed cigarettes from him and that ifUC-I
could supply KASHMIRl with 500 cases of cigarettes a day he would be able to sell them
right away.
189. On October 21, 2010, UC-I and UC-4 made a controlled sale/delivery of untaxed
USAO #2011R00403
55
cigarettes to KASHMIRI, ALI and at the 340 Quick Mart in Berryville,
Virginia. The UCs were directed by K A ~ H M I R I to unload the cigarettes into a back
office/storage area within the store. The UCs did as instructed with the assistance
KASHMIRI, ALI and In total, KASHMIRI, ALI and
purchased 1800 cartons of untaxed cigarettes. KASHMIRI gave UC-l $49,000 in
190. On November 3,2010, KASHMIRI and ALI arrived at the undercover warehouse in
untaxed cigarettes. KASHMIRI gave UC-I $99,500 as payment.
191. On November 16, 2010, KASHMIRI and ALI arrived at the undercover warehouse in
untaxed cigarettes. KASHMIRI gave UC-4 $54,450 in U.S. currency as payment.
192. On November 23, 2010, KASHMIRI and arrived at the undercover
purchased 2580 cartons of untaxed cigarettes. KASHMIRI gave UC-l $70,950 in U.S.
currency as payment. During the course of the transaction, KASHMIRI stated that there
are plenty of Marlboro Gold and Marlboro FF up north (i.e. New York) and that he
needed some Marlboro Gold 100. KASHMIRI also stated that he "knew a guy" in the
New Yark area that was mixing legitimate product with counterfeit product and selling
them from approximately $30 per carton.
193. On December 17,2010, KASHMIRI and ALI arrived at the undercover warehouse in
untaxed cigarettes. KASHMIRI gave UC-l $104,620 in U.S. currency as payment.
USAO #20IlR00403
56
Durring the transaction KASHMIRI indicated that he no longer drove the cigarettes up to
New York because of his health, inferring that his customers were now driving to this
are" (i.e. KASHMIRI's store in Berryville, Virginia) to pick the untaxed cigarettes up.
194. On January 19,2011, ALI arrived at the undercover warehouse in KASHMIRI's
conversion van. In total, ALI purchased 3360 cartons of untaxed cigarettes. KASHMIR!
gave UC-l $93,960 in U.S. currency as payment. During the transaction, ALI stated that
the money he had on him was given to him by KASHMIR!.
195. On February 22, 2011,.ALI arrived at the undercover warehouse in KASHMIRI's
UC-4 $99,000 in U.S. currency as payment. While loading the purchased cigarettes in
ALI's vehicle, ALI informed UC-4 that he, ALI, was driving to New York by himself to
deliver the untaxed cigarettes he had just purchased. ALI further stated that KASHMIRI
felt that ALI was honest when he delivered the untaxed cigarettes, unlike KASHMIRI's
brother who had tried to undercut KASHMIRI.
196. On March 18, 2011, KASHMIRI and ALI arrived at the undercover warehouse in
untaxed cigarettes. KASHMIR! gave UC-l $59,900 in U.S. currency as payment.
197. On April 4, 2011, UC-I and UC-4 made a controlled sale/delivery of untaxed cigarettes
to ALI and F. KASHMlREE at the 340 Quick Mart in Berryville, Virginia. The UCs
were directed by F. KASHMIREE to unload the cigarettes into a back office area within
the store. The UCs did as instructed. In total, F. KASHMIREE and ALI purchased 1800
cartons of untaxed cigarettes. ALI gave UC-I $53,340 in U.S. currency as payment.
During the course of the transaction UC-I told F. KASHMlREE that he was looking to
USAO #2011R00403
57
start selling untaxed cigarettes to the New York area, explaining that his source was
going to front UC-l 150 master cases every other week. UC-l explained that he would
turnaround and front the cigarettes to KASHMIRI to sell to his customers and that UC-l
would propose that KASHMIRI receive a $2 commission for every carton sold. UC-l
asked F. KASHMIREE if their current customers from New York could handle a quantity
that large to which F. KASHMIREE responded that they could. UC-l indicated that he
would talk to KASHMIRI directly about this proposal when KASHMIRI returned from
New York.
untaxed cigarettes. KASHMIRI gave to UC-4 $90,000 in u.s. currency as payment.
During the course of the transaction, KASHMIRI told UC-4 that he made anywhere from
$3 to $4 per carton.
199. On May 5, 2011, UC-l and UC-4 made a controlled sale/delivery of untaxed cigarettes to
KASHMIRI, ALI and F. KASHMIREE at the 340 Quick Mart in Berryville, Virginia
The UCs were directed by ALI to unload the cigarettes into a back office area within the
store. The UCs did as instructed with assistance from KASHMIRI and ALI. In total,
KASHMIRI, ALI and F. KASHMIREE purchased 1800 cartons of untaxed cigarettes.
KASHMIRI gave to UC-l $45,400 in U.S. currency as payment. During the course of
the transaction, KASHMIRI disclosed the names of some of his customers to UC-l and
indicated that his customers were complaining because they could not get enough cases
from KASHMIRI. KASHMIRI further indicated that he had 10 customers who were
used to getting 20 cases each, which was 200 cases, and that now he only had 30 cases to
USAO #2011 R00403
58
sell to these customers.
200. On May 31, 2011, UC-l and UC-4 made a controlled sale/delivery of untaxed cigarettes
to KASHMIR!, ALI and F. KASHMIREE at the 340 Quick Mart in Berryville, Virginia.
The UCs were directed by F. KASHMIREE to unload the cigarettes at the rear ofthe
store. The UCs did as instructed with the assistance of KASHMIR I and ALL In total,
KASHMIRI, F. KASHMIREE and ALI purchased 3400 cartons of untaxed cigarettes.
KASHMIRI gave UC-l $84,000 in U.S. currency as payment. After the transaction,
UC-l asked KASHMIR! about a customer in New York. Specifically, UC-l asked
KASHMIRI if the customer was expecting UC-l to make a delivery to him, to which
KASHMIR! replied yes, that he (KASHMIR!) had called the person and had arranged the
delivery. KASHMIR! then offered to, and did call this customer. KASHMIR! asked the
customer where UC-I should meet him and the customer replied that there was an Asian
market located at the intersection of Main Street and 96
th
Avenue, Flushing, New York.
KASHMIR! then provided UC-I with the customer's name "Simon" and his telephone
number, *
201. Businesses operating in Virginia are obligated to collect and report the business's gross
sales and collect Virginia sales tax.
202. The DEFENDANTS reported the following amounts in gross sales at 340 Quick Mart,
Berryville, Virginia for the months of January 2009, through July 2010, and combined
gross sales at 340 Quick Mart, Berryville,Virginia and Fass, Inc d/b/a Clearbrook
Shopping Center, Clearbrook, Virginia for the months of March 2010, through August
2010.
Month/Year 340 Quick Mart, Fass, Inc. d/b/a Gross Sales Rellorted by
Berrvville, VA Clearbrook DEFENDANTS
USAO #2011R00403
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ShoIming Center on Virginia Sales Tax
Clearbrook, VA re20rt ST-9
January 2009 $81,225 $81,225
February 2009 $91,237 $91,237
March 2009 $97,651 $97,651
Apri12009 $79,500 $79,500
May 2009 $89,500 $89,500
June 2009 $91,500 $91,500
July 2009 $98,750 $98,750
August 2009 $99,417 $99,417
September $110,000 $110,000
2009
October 2009 $99,750 $99,750
November $111,500 $111,500
2009
Dec. 2009 $98,500 $98,500
January 2010 $105,200 $0 $105,200
February 2010 $105,000 $0 $105,000
March 2010 $112,000 $140,000 $252,000
Apri12010 $106,500 $145,500 $252,000
May 2010 $102,000 $155,000 $275,000
June 2010 $103,000 $163,000 $266,000
July 2010 $104,000 $162,000 $266,000
August 2010 $102,000 $160,000 $262,000
203. The DEFENDANTS reported $1,148,530 in gross Virginia sales in 2009 for 340 Quick
Mart.
204. The DEFENDANTS reported $1,765,000 in gross Virginia sales from January 2010, to
August 2010 for 340 Quick Mart and Fass, Inc.
205. In the months and years listed below, the DEFENDANTS deposited, or caused to be
deposited, cash, checks and credit cards, the approximate amounts listed below into one
of the bank accounts listed above.
Month/Year Amount De20sited
January 2009 $110,077
February 2009 $73,823
March 2009 $85,585
Apri12009 $81,279
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60
May 2009 $73,115
June 2009 $91,023
July 2009 $141,949
August 2009 $112,380
September 2009 $104,356
October 2009 $151,691
November 2009 $165,768
December 2009 $87,442
January 2010 $80,201
February 2010 $155,118
March 2010 $263,421
April 2010 $284,289
May 2010 $275,421
June 2010 $296,322
July 2010 $263,130
August 2010 $316,797
206. In 2009, the DEFENDANTS deposited, or caused to be deposited, approximately
$1,278,506 in the accounts listed above.
207. In 2010, from January through August, the DEFENDANTS deposited, or caused to be
deposited, approximately $1,914,089 in the accounts listed above.
208. In the months and years listed below, the DEFENDANTS deposited, or caused to be
deposited, into one of the bank accounts listed above an amount of money greater than
what they reported in gross sales. The difference between what they reported and what
they deposited is listed below.
Month/Year Amount Gross Sales Difference
Dellosited Rellorted by Between Amounts
DEFENDANTS Dellosited and
on Virginia Amounts Rellorted as
Sales Tax Gross Sales.
Rellort ST-9
January 2009 $110,078 $81,225 $28,853
February 2009 $73,823 $91,237 ($17,414)
March 2009 $85,585 $97,651 ($12,066)
April 2009 $81,297 $79,500 $1,797
May 2009 $73,114 $89,500 ($16,386)
USAO #2011R00403
61
June 2009 $91,023 $91,500 ($477)
July 2009 $141,949 $98,750 $43,199
August 2009 $112,380 $99,417 $12,963
September $104,356 $110,000 ($5,644)
2009
October 2009 $151,691 $99,750 $51,941
November $165,768 $111,500 $54,268
2009
December $87,442 $98,500 ($11,008)
2009
January 2010 $81,602 $105,200 ($23,598)
February 2010 $155,068 $105,000 $50,068
March 2010 $263,372 $252,000 $11,372
Apri12010 $284,615 $252,000 $32,615
May 2010 $254,497 $257,000 ($2,503)
June 2010 $295,008 $266,000 $29,008
July 2010 $263,130 $266,000 ($2,870)
August 2010 $316,797 $262,000 $54,797
209. In 2009, the DEFENDANTS deposited, or caused to be deposited, $129,976 more than
they reported in gross sales.
210. In 2010, from January through August, the DEFENDANTS deposited, or caused to be
deposited, $151,472 more than they reported in gross sales.
211. In 2008, the DEFENDANTS reported $825,345 in Federal gross income for 340 Quick
Mart.
212. In 2009, the DEFENDANTS reported $1,273,122 in Federal gross income for 340 Quick
Mart.
213. In 2010, the DEFENDANTS reported $1,256,335 in Federal gross income for 340 Quick
Mart.
214. The DEFENDANTS reported $925,500 in gross income to the Virginia Department of
Taxation for Fass, Inc. for the period of March 2010 through August 2010.
215. All in violation of Title 18, United States Code 371.
USAO #2011 R00403
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COUNTS 2 THROUGH 99
(18 U.S.c. 2342(a
(Trafficking in Contraband Cigarettes)
1. The allegations alleged in Count 1, paragraphs 2 through 214, are hereby realleged and
incorporated by reference as though set forth in full.
2. On or about the dates set forth below, in the Western District of Virginia, the defendants,
MOHAMMAD SYED LONE KASHMIRl, FARHAT JABEEN LONE KASHMIREE,
FARMAN ALI and MALIK
ASHRlF, did knowingly and unlawfully purchase, receive and possess contraband
cigarettes, as that term is defined in Title 18, United States Code, Section 2341, to-wit: a
,
quantity of more than 10,000 cigarettes which bore no evidence of the payment of
applicable State cigarette taxes in the Commonwealth of Virginia, in the amount set forth
below.
Count Date AQQroximate Number of Contraband
Cigarettes/Cartons
2 July 1,2009 168,000 contraband cigarettes (840 cartons)
3 July 3, 2009 420,000 contraband cigarettes (210 cartons)
4 July 3,2009 540,000 contraband cigarettes (270 cartons)
15 July 30, 2009 5,656,000 contraband cigarettes (4800 cartons)
17 August 5, 2009 611,400 contraband cigarettes (3057 cartons)
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22 August 21, 2009 1,392,000 contraband cigarettes (6960 cartons)
25 September 2, 2009 570,000 contraband cigarettes (2850 cartons)
33 September 29,2009 606,000 contraband cigarettes (3030 cartons)
35 October 1,2009 660,000 contraband cigarettes (3300 cartons)
36 October 1, 2009 420,000 contraband cigarettes (2100 cartons)
50 November 3, 2009 612,000 contraband cigarettes (3060 cartons)
56 November 18,2009 516,000 contraband cigarettes (2580 cartons)
57 November 19,2009 206,000 contraband cigarettes (1020 cartons)
59 December 1, 2009 648,000 contraband cigarettes (3240 cartons)
63 December 15,2009 626,000 contraband cigarettes (3130 cartons)
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65 December 22, 2009 1,020,000 contraband cigarettes (5100 cartons)
70 January 5,2010 708,000 contraband cigarettes (3540 cartons)
71 January 5, 2010 300,000 contraband cigarettes (1500 cartons)
73 January 14, 2010 1,056,000 contraband cigarettes (5280 cartons)
76 January 22, 2010 684,000 contraband cigarettes (3420 cartons)
78 February 2,2010 966,000 contraband cigarettes (4830 cartons)
79 February 4,2010 918,000 contraband cigarettes (4590 cartons)
80 February 162010 984,000 contraband cigarettes (4920 cartons)
81 February 18, 2010 780,000 contraband cigarettes (3900 cartons)
82 March 2, 2010 1,200,000 contraband cigarettes (6000 cartons)
83 March 4,2010 984,000 contraband cigarettes (4920 cartons)
84 March 23, 2010 720,000 contraband cigarettes (3600 cartons)
85 March 30, 2010 720,000 contraband cigarettes (3600 cartons)
86 April 6, 2010 870,000 contraband cigarettes (4350 cartons)
87 April 13, 2010 960,000 contraband cigarettes (4800 cartons)
88 April 21, 2010 1,008,000 contraband cigarettes (5040 cartons)
89 April 27, 2010 1,416,000 contraband cigarettes (7080 cartons)
90 May 11,2010 1,112,000 contraband cigarettes (5560 cartons)
91 May 25,2010 618,000 contraband cigarettes (3090 cartons)
92 June 16,2010 350,000 contraband cigarettes (1740 cartons)
93 June 22, 2010 708,000 contraband cigarettes (3540 cartons)
3. All in violation of Title 18, United States Code, Section 2342(a).
COUNTS 100 THROUGH 197
(18 U.S.C. 1956(a)(1)(A)(i))
(Money Laundering - Promotion)
1. The allegations alleged in Count 1, Paragraphs 2 through 214, are hereby realleged and
USAO #2011R00403
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2. On or about the dates listed below, in the Western District of Virginia, the defendants,
MOHAMMAD SYED LONE KASHMIRI, FARHAT JABEEN LONE KASHMIREE,
, FARMAN ALI and MALIK
ASHRIF, did knowingly conduct and attempt to conduct the following financial
transactions affecting interstate and foreign commerce, which involved the proceeds of a
specified unlawful activity, that is trafficking in contraband cigarettes, with the intent to
promote the carrying on of said specified unlawful activity, and that while conducting
and attempting to conduct such financial transactions knew that the property involved in
the financial transaction represented the proceeds of some form of unlawful activity.
Count Date Transaction
100 July 1,2009
Defendants paid law enforcement $19,000 in cash
for contraband cigarettes
101 July 3, 2009
102 July 3, 2009
103 July 8, 2009
104 July 10, 2009
105 July 15,2009
106 July 16, 2009
107 July 18, 2009
108 July 22, 2009
109 July 22, 2009
110 July 24,2009
USAO #201IR00403
66
111 July 27,2009
112 July 28, 2009
113 July 30, 2009
Defendants paid law enforcement $109,900 in
cash for contraband cigarettes
114 July 30, 2009
115 August 5, 2009
116 August 6, 2009
117 August 17,2009
118 August 17,2009
119 August 21, 2009
120 August 21,2009
121 August 27,2009
122 August 28, 2009
123 September 2, 2009
124 September 3,2009
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67
133 October I, 2009
for contraband cigarettes .
134 October 1,2009
135 October 6, 2009
136 October 7, 2009
137 October 8, 2009
138 October 13, 2009
139 October 14, 2009
140 October 15, 2009
141 October 20, 2009
142 October 21,2009
143 October 22, 2009
144 October 27,2009
145 October 28, 2009
146 October 29,2009
147 October 29, 2009
148 November 3,2009
for contraband cigarettes .
149 November 4, 2009
152 November 10, 2009
153 November 12, 2009
154 November 18, 2009
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155 November 19,2009
156 November 24, 2009
157 December 1,2009
158 December 1, 2009
159 December 3,2009
160 December 8, 2009
161 December 15,2009
163 December 22, 2009
166 December 30, 2009
167 December 30, 2009
168 January 5, 2010
169 January 5, 2010
170 January 12,2010
171 January 14,2010
172 January 14, 2010
173 January 19,2010
174 January 22,2010
175 January 28, 2010
176 February 2, 2010
USAO #2011 R00403
69
177 February 4,2010
178 February 16,2010
179 February 18,2010
180 March 2, 2010
181 March 4,2010
182 March 23, 2010
183 March 30,2010
184 April 6, 2010
185 April 13, 2010
186 April 21, 2010
187 April 27, 2010
188 May 11, 2010
189 May 25, 2010
190 June 16,2010
191 June 22, 2010
192 July 13, 2010
193 August 4, 2010
194 August 10, 2010
195 August 17, 2010
196 August 26, 2010
197 August 31, 2010
3. All in violation of Title 18, United States Code, Sections 1956(a)(1)(A)(i) and 2.
USAO #2011R00403
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COUNTS 198 THROUGH 211
(18 U.S.C. 1957)
(Money Laundering - Transaction Greater Than $10,000)
I. The allegations alleged in Count I, Paragraphs 2 through 214, are hereby realleged and
2. On or about the dates set forth below, in the Western District of Virginia and elsewhere,
the defendants, MOHAMMAD SYED LONE KASHMIRI, FARHAT JABEEN LONE
KASHMlREE, FARMAN ALI
and MALIK ASHRIF, did knowingly engage and attempt to engage in the following
monetary transactions by, through, or to a financial institution, affecting interstate or
foreign commerce, in criminally derived property of a value greater than $10,000, that is
the deposit, withdrawal, transfer, and exchange of U.S. currency, funds, and monetary
instruments, such property having been derived from a specified unlawful activity, that is,
trafficking in contraband cigarettes.
Count Date Transaction
198 April 6, 2010 Defendants paid law enforcement $109,980 in cash for
contraband cigarettes
202 May 11,2010 Defendants paid law enforcement $140,000 in cash for
203 May 25, 2010 Defendants paid law enforcement $86,000 in cash for
204 June 16,2010 Defendants paid law enforcement $43,075 in cash for
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71
205 June 22, 2010 Defendants paid law enforcement $91,700 in cash for
206 July 13, 2010 Defendants paid law enforcement $96,650 in cash for
207 August 4,2010 Defendants paid law enforcement $93,580 in cash for
208 August 10,2010 Defendants paid law enforcement $15,600 in cash for,
209 August 17, 2010 Defendants paid law enforcement $98,200 in cash for
3. All in violation of Title 18, United States Codes, Sections 1957 and 2.
NOTICE OF FORFEITURE
L Upon conviction of one or more of the felony offenses alleged in this Indictment,
the defendants shall forfeit to the United States:
a. Any property, real or personal, which constitutes or is derived from
proceeds traceable to a violation of 18 U.S,C 371 and/or 2342,
pursuant to 18 U.S.C. 98 1 (a)(1)(C) and 28 U.S.C 2461.
b. Any property, real or personal, involved in a violation of 18 U.S,C.
and/or 1957, or any property traceable to such property, pursuant to 18
U.S.C. 982(a)(1).
c, Any conveyances involved in a violation of 18 U.S.C. 2342, pursuant to
49 U,S.C 80303 and 28 U.S.C 2461.
2. The property to be forfeited to the United States includes but is not limited to the
following property:
a. Money Judgment
Not less than $8,500,000 in United States currency and all interest and
proceeds traceable thereto, in that such sum in aggregate was obtained
directly or indirectly as a result of said offenses or is traceable to such
property,
USAO #2011R00403
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b. United States Currency and/or [mancia! account(s)
USAO #20Il R00403
(1) Bank of Clarke County, All funds on deposit or credited to
Account No. held in the names of Mohammad S.
Lonekashrniri and/or Farhat J. Lonekashrniree".
(2) Bank of Clarke County, All funds on deposit or credited to Account
No. , held in the names of Mohammad S. Lonekashmiri d/b/a
340 Quick Mart.
No. held in the names of Mohammad S. Lonekashrniri d/b/a
340 Quick Mart.
(4) Bank of Clarke County, Contents of One Safe Deposit Box, Box
held in the names of Mohammad S. Lone Kashrniri and
Farhat J. Lone Kashrniree.
No. , held in the name ofFASS, Inc., (owner: Mohammad S.
Lonekashrniri), d/b/a Clearbrook Shopping Ctr).
No. , held in the name ofFASS, Inc., (Owner: Mohammad S.
Lonekashrniri), d/b/a Clearbrook Shopping Ctr).
No. held in the names of Ali A. Lonekashrniree and Farhat J.
Lonekashrniree.
No. held in the names of Shareen K. Lonekashrniree and
Farhat 1. Lonekashrniree.
No. held in the names of Farhat 1. Lonekashrniree.
(10) BB&T, All funds on deposit or credited to Account No.
, held in the name of F ASS, Inc., (Owner: Mohammad S.
Lonekashrniri), d/b/a Clearbrook Shopping Center).
(11) BB&T, All funds on deposit or credited to Account No.
held in the name of F ASS, Inc., (Owner: Mohammad S.
Lonekashrniri), d/b/a Clearbrook Shopping Center).
73
Account No. held in the names of
Account No. , held in the names .
Account No. held in the names of Farman Ali.
c. Vehicles
(1) 2010 Volkswagon, VIN WVWML7AN9AE507740
(2) 2010 Toyota Land Cruiser, VIN JTMHY7AJXA5005321
d. Real Property
USAO #2011 R00403
(1) 3522 Martinsburg Pike, Clearbrook, Virginia 22644
Tax Map No. 33-A-117 A
BEING the same property conveyed to Mohammad S.
Lonekashrniri, by Deed dated February 22, 2010, from
husband and wife. Said Deed is recorded
in the Circuit Court Clerk's Office of Frederick County, Virginia, as
Instrument No. 100001522."
(2) 304 N. Buckmarsh Street, Berryville, Virginia 22611
Tax Map No. 142-A-7
BEING the same property conveyed to Mohammad S.
Lonekashrniri and Farhat J. Lonekashrniree, husband and wife by
Deed dated September 5, 2005, from and
. Said Deed is recorded in the Circuit Court Clerk's Office
of Clarke County, Virginia, in Deed Book 440, Page 357."
(3) 306 N. Buckmarsh Street, Berryville, Virginia 22661
Tax Map No. 14A2-A-6
Being the same property conveyed to Mohammad S. Lonekashrniri,
by Deed dated October 13, 2009, from The Bank of New York as
successor in interest to JP Morgan Chase Bank NA as Trustee for
Structured Asset Mortgage Investments II Inc., Ear Steams Alt-A-
Trust 2005-7, Mortgage Pass-Through Certificates, Series 2005-7.
Said Deed is recorded in the Circuit Court Clerk's Office of Clarke
County, Virginia, in Deed Book 515, Page 121."
74
3. If any of the above-described forfeitable property, as a result of any act or
omission of the defendant:
a. cannot be located upon the exercise of due diligence;
b. has been transferred or sold to, or deposited with a third person;
c. has been placed beyond the jurisdiction of the Court;
d. has been substantially diminished in value; or
e. has been commingled with other property which cannot be
subdivided without difficulty;
it is the intent of the United States to seek forfeiture of any other property of the defendant up to
the value ofthe above-described forfeitable property, pursuant to 21 U.S.C. 853(P), including
but not limited to the following assets:
(a) United States Currency and/or Financial Accounts:
(1) HSBC, All ftmds on deposit or credited to Account No.
held in the names of Mohammad S. Kashmiri and Farat J. Lone
Kashmiree.
(2) HSBC, All ftmds on deposit or credited to Account No. ,
held in the names of Mohammad S. Kashmiri and Farat J. Lone
Kashmiree.
(b) Real Property:
USAO #2011R00403
(1) 43237 Overview Place, Leesburg, Virginia 20176
Tax Map No. 62K-7-75, PIN No. 112-47-2728-000
Known as Lot 75, Section 42, Lansdowne on the Potomac, as the same
appears duly dedicated, platted and recorded in Deed Book 2331 at Page
402 among the land records of Loudoun County, Virginia, and
Being the same property conveyed to Mohammad Saeed Lone Kashmiri.
(2) 32-34 73rd Street, Jackson Heights, New York 11370
Block 1168, Lot 23
Queens Borough Document # 4020008963202 - Reel 6602-720
BEING the same property conveyed to Mohammad Syed Lone Kashmiri
and Farhat Jabeen Lone Kashmiri, his wife, by Deed dated August 23,
2002."
75
ATRUEBILL,Ihi,Ld.yo[ 4 .. "'/ ' ~
. ON
USAO #201 IR00403
76

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