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The ring’s transporter allegedly procured cigarettes two to three times per week from Atlantic Dominion Distributors in Virginia Beach, VA.
By Forum Staff
An Ozone Park man has been indicted for his alleged role in trafficking nearly 4 million untaxed cigarettes from Virginia to Staten Island for distribution and resale, and evading more than $1.3 million in city and state taxes, State Attorney General Barbara Underwood announced on Monday.
Hansraj Deonarain, 42, was one of seven men arraigned on Monday on a 79-count indictment charging them with first-degree criminal tax fraud, second-degree criminal tax fraud, second-degree money laundering, and fourth-degree conspiracy, among other offenses. According to court records, bail for Deonarain was set at $7,500 cash, $15,000 bond. As of Wednesday afternoon, he remained in custody in the Brooklyn Detention Complex.
The indictment charges a total of 12 defendants. The indictments against the other five defendants not present at arraignment remain sealed, Underwood said.
Code-named “Operation Virginia Slims,” the AG’s joint investigation with the City Police Department implemented court-authorized wiretapping, GPS tracking, covert cameras, and undercover work to uncover an operation that was allegedly evading stae and city excise and sales taxes by trafficking approximately 740 cartons of untaxed cigarettes per week from Virginia to New York City. It is alleged that a total of approximately 3,977,400 cigarettes were trafficked into Staten Island, evading a total of $1,332,344 in tax liability due to the State and City, Underwood noted.
Brothers Iyas Leqyanya, 43, and Ihab Jaber, 48, of Staten Island, allegedly directed the operation’s transporter to procure cigarettes two to three times per week from Atlantic Dominion Distributors in Virginia Beach, VA, and transport them to Staten Island. Once the transporter delivered the untaxed cigarettes, they were allegedly stashed in Leqyanya and Jaber’s Manor Heights residence. Leqyanya, Jaber, and another defendant then allegedly distributed and resold the untaxed cigarettes to retail shops in Queens and Staten Island.
On March 6, law enforcement executed search warrants at seven stash locations in both Staten Island and Onley, VA. Hundreds of cartons of untaxed cigarettes, approximately $20,000 in illicit proceeds, and Atlantic Dominion Distributor invoices – which detailed the scope of the operation – were seized, Underwood said.
On Aug. 16, Leqyanya, Jaber, and a co-conspirator were charged on an initial indictment with possession or transport for the purpose of sale of 30,000 or more unstamped cigarettes. On Aug. 22, Leqyanya and Jaber were arraigned in Richmond County Supreme Court. The brothers were each ordered held on $350,000 bail.
“As alleged in our indictment, the defendants engaged in a massive cigarette trafficking ring and evaded huge amounts of New York taxes,” the attorney general added. “These crime rings cheat New Yorkers, and my office will continue to partner with law enforcement agencies to crack down on those that try to skirt the law.”
Deonarain’s next court date is Nov. 9.
