Published: Monday, November 21, 2011, 9:01 PM    

Updated: Monday, November 21, 2011, 9:01 PM

http://www.nj.com/news/index.ssf/2011/11/father_and_son_accused_in_alle.html

NEWARK — Federal authorities have charged the owner of a Newark used-car dealership and his father with money laundering for allegedly helping a customer they believed trafficked in cocaine hide paperwork from the government for two luxury cars he purchased, the Office of U.S. Attorney Paul J. Fishman said today.

The customer was actually an undercover special agent with the Internal Revenue Service, who, working with agents from the Drug Enforcement Administration, led the six-month investigation.

Arrested today were Gilberto Teixeira Jr., 23, of Newark; and Gilberto Teixeira Sr., 48, of Secaucus, at their dealership, GT Motor Sport.

The father and son both were charged with a single count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison and a $250,000 fine upon conviction.

In April, the IRS agent met with Teixeira Sr. and purchased a BMW M5 for $50,000 in cash, after explaining he was a cocaine trafficker and the money was from narcotics proceeds, the government said. The undercover agent also expressed concern about filing paperwork, the U.S. Attorney’s Office said in a release detailing the criminal complaint.

Teixeira Sr. told the undercover agent he would keep the cash deposit below $10,000, to avoid a tax filing, then explained the contract would falsely reflect the BMW was financed, though it was actually paid for in cash, authorities said.

The agent also allegedly told Teixeira Jr. he wanted the car put in his girlfriend’s name. On the contract, Teixeira Jr. indicated that the "girlfriend" — actually an undercover agent — had only paid $37,000 for the BMW, authorities said.

In October, the same undercover agent returned to the dealership and made a similar purchase for a car costing $57,000, again with money he claimed was from narcotics, authorities said. Again, the deposit was kept under $10,000 and the necessary form was never sent to the IRS, according to the complaint.

The father and son are scheduled to make their first appearance in federal court in Newark Tuesday. It was not clear today whether the two defendants had attorneys representing them.