MONDAY NOVEMBER 21, 2011, 6:28 PM

http://www.northjersey.com/news/Secaucus_man_accused_of_conspiring_with_son_to_launder_drug_money.html

A Secaucus man and his son were arrested by federal agents Monday in an alleged scheme to use the son’s auto dealership to launder drug money.

Gilberto A. Teixeira Sr., 48, of Secaucus and Gilberto Jr., 23, of East Newark were arrested at GT Motor Sport LLC in Newark by agents of the Internal Revenue Service and the Drug Enforcement Administration, authorities said.

They were each charged in a criminal complaint with one count of money laundering conspiracy.

Authorities said an undercover IRS agent, posing as a cocaine dealer, met with the elder Tiexeira in April. The agent indicated he was looking to buy a car with money from his drug business and he didn’t want any paperwork filed that could alert law enforcement to his illegal activities.

In the course of negotiating the cash purchase of a 2007 BMW M5 for $50,000, Teixeira Sr. allegedly offered to have the contract falsely reflect that the sale had been financed through the dealership and that a down payment of $9,000 had been made to avoid having to file IRS forms for transactions of $10,000 or more.

The agent returned later that day to complete the deal with the son, telling Teixeira Jr. that he sold cocaine and that wanted the car put in his girlfriend’s name, the complaint said.

Teixeira Jr. allegedly falsified the contract to show that the girlfriend had paid only $37,000 for the car, authorities said.

Last month, the undercover agent returned to the dealership and negotiated with the younger Teixeira to buy another car for $57,000 with money that he claimed was narcotics proceeds, the complaint said.

Authorities said IRS records show that the father, his former auto dealership, GT II Auto Sales Corp., the son and his dealership have never filed IRS forms for cash transactions over $10,000.

If convicted of conspiracy to commit money laundering the Teixeiras each face up to 20 years in prison and a $250,000 fine.

They are expected to appear for a bail hearing before a federal magistrate judge in Newark on Tuesday.