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Agents Arrest Car Dealers In Money-Laundering Sting


Posing as drug dealers and boasting of the illegal source of their cash, Federal agents bought almost $900,000 worth of luxury cars from five leading car dealerships in New York City in the last several weeks, Federal prosecutors said yesterday.

Posing as drug dealers and boasting of the illegal source of their cash, Federal agents bought almost $900,000 worth of luxury cars from five leading car dealerships in New York City in the last several weeks, Federal prosecutors said yesterday.

They also announced the arrest of a dozen executives and salesmen and three insurance agents on charges of violating money-laundering laws and disguising the true ownership of the vehicles. Federal agents said the arrests were the first in the nation in an industry in which the Federal authorities have long suspected that many do business with drug dealers, skirting laws meant to block money laundering and purchases from drug earnings. The charges carry penalties of up to 20 years in jail and fines of up to $250,000.

More : query.nytimes.com



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