Tue, Jan 21, 2014

http://www.diamonds.net/(S(mfquej3tefis4p45h02w2345))/News/NewsItem.aspx?ArticleID=45874&ArticleTitle=Jeweler+Faces+Sentencing++in+Money+Laundering+Case

United States Attorney's Office for the Western District of Pennsylvania has issued the following statement:

A downtown Pittsburgh, Pennsylvania jeweler pleaded guilty in federal court on January 14 to a charge of failing to file a report of currency received by non-financial business, United States Attorney David J. Hickton announced today.

Alan Kashi, 32, of Pittsburgh pleaded guilty to one count before United States District Judge Gustave Diamond.  In connection with the guilty plea, the court was advised that on March 13, 2012, Kashi, who was engaged in the jewelry business known as Kashi Jewelers, for the purpose of evading federal reporting requirements, failed to file an Internal Revenue Service (IRS) Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, following the receipt of approximately $12,500 in currency as payment for a Breitling watch.

A civil forfeiture complaint filed in July 2013 alleged that the owners and/or employees of Kashi Jewelers conducted financial transactions involving the proceeds of drug trafficking. Pursuant to a stipulation, Kashi and his family members ultimately agreed to forfeit $933,075 to the federal government and the court issued its final order of forfeiture on December 19, 2013.

"This important case highlights the use of asset forfeiture as a resource in our effort to stop the illegal flow of drugs in our communities," said U.S. Attorney Hickton. "By freezing and forfeiting assets of a jewelry store used by drug dealers to launder their drug monies, we have taken another step to make our community safer and put about a million dollars in the federal treasury."

Judge Diamond scheduled sentencing for May 14, 2014, at 10 a.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.

Pending sentencing, the court released Kashi on an unsecured $25,000 bond.

Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.

The Internal Revenue Service - Criminal Investigation conducted the investigation that led to the prosecution of  Kashi.