Father and son arrested, charged with scheming to launder drug proceeds through son’s auto dealership
FOR IMMEDIATE RELEASE
November 21, 2011
NEWARK, N.J. – The owner of a Newark auto dealership and his father were arrested today and charged for allegedly using the dealership to launder what they thought were the illegal proceeds of cocaine sales, U.S. Attorney Fishman announced.
Gilberto A. Teixeira Sr., 48, of Secaucus, N.J., and Gilberto A. Teixeira Jr., 23, of East Newark, N.J., were arrested this afternoon at GT Motor Sport LLC in Newark by special agents of IRS – Criminal Investigation and the Drug Enforcement Administration. Father and son are each charged in a criminal Complaint with one count of money laundering conspiracy. The defendants are expected to appear tomorrow before U.S. Magistrate Judge Patty Shwartz in Newark federal court.
According to the Complaint unsealed today:
On April 27, 2011, an IRS undercover special agent met with Teixeira Sr. at the dealership, indicating that he was a cocaine trafficker looking to purchase a car with narcotics proceeds. The agent negotiated the purchase of a BMW M5 for $50,000 and explained that he was concerned about paperwork being filed in connection with the purchase.
During the meeting, Teixeira Sr. told the agent that the contract would reflect a $9,000 down payment because a down payment of $10,000 would be “trouble.” Trades and businesses that receive more than $10,000 in coins or currency in one or more related transactions are required to file a 8300 Form with the IRS. Teixeira Sr. assured the agent that he would not file any paperwork and explained that the contract would falsely reflect that the automobile was financed though the agent planned to pay cash in full. Teixeira Sr. also explained to the agent that as the lien holder of the automobile, Teixeira Sr. would be able to claim the automobile if it were seized in connection with narcotics activities.
Later that day, the agent returned to the dealership with the $50,000. The agent completed the transaction with Teixeira Jr., whose father was not present. Teixeira Jr. falsified the automobile contract, indicating the car was financed. The agent also told Teixeira Jr. he sold cocaine, and Teixeira Jr. also assured him no paperwork would be filed.
The agent also told both Teixeiras that he wanted to put the car in his girlfriend’s name, which both agreed to do. When completing the transaction, Teixeira Jr. also indicated in the contract that the “girlfriend,” actually another undercover IRS special agent, had only paid $37,000 for the car.
On Oct. 6, 2011, the agent returned to the dealership and negotiated the sale of another automobile with Teixeira Jr., for approximately $57,000, money that he claimed was narcotics proceeds.
IRS records show that Teixeira, Sr., Teixeira, Jr., GT II Auto Sales Corp. (Teixeira, Sr.’s former auto dealership), and GT Motor Sport LLC have never filed an 8300 form for cash transactions over $10,000.
The count with which each of the defendants is charged carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Paul J. Fishman credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Victor W. Lessoff, as well as the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, with the investigation.
The government is represented by Assistant U.S. Attorney Frances C. Bajada of the U.S. Attorney’s Office Narcotics/Organized Crime Drug Enforcement Task Force Unit in Newark.
The charge and allegations contained in the Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.