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Justice News

Department of Justice
U.S. Attorney’s Office
Middle District of Pennsylvania

FOR IMMEDIATE RELEASE
Tuesday, July 22, 2014

Owner Of Forty Fort GM Foodmart Store Sentenced To Prison For Money Laundering Conspiracy

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 47-year-old Forty Fort businessman was sentenced to 31 months in federal prison today by Senior U.S. District Court Judge Edwin M. Kosik for participating in a conspiracy to launder drug proceeds related to the distribution of synthetic marijuana.

     According to United States Attorney Peter Smith, the defendant, Mastan Mathan, of Forty Fort, previously admitted to conducting financial transactions with drug proceeds that were designed to conceal the nature of the proceeds and carry on the illegal distribution of synthetic marijuana. The money laundering activity occurred between October 2011 and July 2012, and involved approximately $310,000.

      Mathan was charged in a criminal Information filed by the United States Attorney. The Information states that Mathan and his co-conspirators obtained synthetic marijuana from out-of-state suppliers; sold synthetic marijuana to customers from the GM Foodmart Store in Forty Fort; and deposited the proceeds of drug sales into at least two bank accounts in order to conceal the illegal nature of the proceeds and to promote the carrying on of the illegal drug business.

     The prosecution of Mathan resulted from an investigation by the IRS Criminal Investigative Division, the Drug Enforcement Administration, and the Pennsylvania State Police.

     Judge Kosik also ordered Mathan to be placed on supervised release for two years after serving his prison sentence. Mathan has forfeited approximately $174,000 to the United States that was seized by agents during the investigation.

     The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.

Updated April 9, 2015