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October 14, 2008

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http://www.usdoj.gov/usao/moe/press_releases/archived_press_releases/2008_press_releases/october/hamed_organization.html

October 14, 2008
For Immediate Release

FOURTEEN AREA PEOPLE INDICTED ON FEDERAL RACKETEERING CHARGES INVOLVING CONSPIRACY TO TRANSFER CASH AND CHECKS TO THE PALESTINIAN TERRITORIES

St. Louis, MO: Fourteen members of a criminal enterprise operating out of five St. Louis-area convenience stores have been indicted on federal racketeering and multiple related charges, United States Attorney Catherine L. Hanaway and John Gillies, Special Agent in Charge, FBI-St. Louis, announced today.

As far back as 2000, the conspiracy has involved bank fraud, receipt of stolen property, conducting an unlicensed money transmitting business, purchasing contraband cigarettes for resale, evading reporting requirement on exporting monetary instruments, wire fraud and transporting monetary instruments and funds to avoid reporting requirements.

“The indictment alleges that after generating money through these illegal activities, the members of this organization utilized couriers, who traveled from the United States to the Palestinian territories carrying cash, jewelry, cashier’s checks and endorsed and unendorsed personal and business account checks,” said Hanaway.

“This case illustrates the importance of law enforcement partnerships, intelligence sharing and cooperation we see every day in St. Louis through the work of our task forces. As a result of today’s law enforcement actions, the activities of criminal elements in our community have been disrupted,” added Gillies.

According to the indictment, the Hamed Organization is a criminal enterprise that operates primarily in the City of St. Louis and St. Louis County. Members and associates of the enterprise, many who are related to each other, raise and collect money through legal and illegal means for themselves and to transfer money to entities in the Palestinian territories.

The enterprise owns and operates convenience stores that they utilize to receive and sell stolen goods, such as infant formula, computers, Global Positioning System devices and cigarettes. The enterprise allegedly buys the stolen property at rates significantly below fair market retail value and sells the items through the convenience stores at a large profit.

Additionally, as alleged in the indictment, the enterprise transferred real estate and businesses amongst its members as a means to generate cash from fraudulently obtained bank loans. They obtained the bank loans by falsifying citizenship status, total assets, misrepresentations of debt and asset ownership.

They operated out of the following area convenience stores:

Regal Food I, 4201 McRee Avenue, St. Louis
Regal Food II, 3852 Virginia Avenue, St. Louis
Ferguson Market, 9101 West Florissant Avenue, Ferguson
Prince Market, 9826 St. Charles Rock Road, St. Louis
St. Louis Supermarket, 4331 Natural Bridge Avenue, St. Louis.

Individuals indicted:

Bassam Hisham Hamed, Florissant, MO, chief executive of the enterprise
Ghandi Hisham Hamed, Florissant, MO, leader of the enterprise and brother of Bassam Hamed
Ayoub Hisham Hamed, Hazelwood, MO, brother of Bassam Hamed
Said Jarabaa, Florissant, MO, leader of the enterprise
Suhail Jarabaa, Florissant, MO, brother of Said Jarabaa
Mohammed Badwan, Florissant, MO, brother of Mazen
Mazen Badwan, Florissant, MO, brother of Mohammed
Abdelkarim Badwan, Florissant, MO, father of Mohammed and Mazen
Nael Abdeljabbar, Florissant, MO
Mahmoud Ghannam, Hazelwood, MO
Mahir Mohammad, St. Louis, MO
Nayef Lutfeyyah, Florissant, MO
Rayqa Jarabaa, Palestine
Shahrazad Ramadan, St. Louis, MO

Charges and maximum penalties:

RICO Conspiracy, 20 years prison and/or fines up to $250,000 or twice the gross profits/proceeds
Bank fraud, 30 years prison and/or files up to $1,000,000
Transporting monetary instruments to avoid reporting requirement, 20 years prison and/or fines up to $500,000 or twice value of funds
Conspiracy to structure in order to avoid reporting requirements, five years prison and/or fines up to $250,000
Conspiracy to receive stolen goods, five years prison and/or fines up to $250,000
Receiving contraband cigarettes, five years prison and/or fines up to $250,000
Hanaway commended the work performed on this case by the Joint Terrorism Task Force and Assistant United States Attorney John J. Ware, who is handling the case for the U.S. Attorney’s office.

The charges set forth in an indictment are merely accusations, and each defendant is presumed innocent until and unless proven guilty.