ATF DISMANTLES ILLEGAL CIGARETTE TRAFFICKING ORGANIZATIONS ON BOTH COASTS
Arrests Culminate 2-1/2-year Undercover Investigation

LOS ANGELES - U.S. Attorneys for the Western District of Virginia and the Central District of California and the Washington and Los Angeles Field Divisions of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced today the unsealing of indictments against 15 members of two transcontinental cigarette smuggling organizations that trafficked about $20 million in contraband cigarettes.

ATF agents arrested at least 13 people in California today and were seeking more as part of the 2½-year-long undercover investigation that involved hundreds of law enforcement officers from numerous Federal, State, and local jurisdictions across the United States.

During the course of the investigation, the indictments allege, the smuggling organizations moved about $20 million worth of cigarettes illegally from Virginia to California, Nevada and New York and defrauded the State of California of about $5 million in tax revenue. As part of the investigation, law enforcement officers followed and conducted surveillance on numerous tractor-trailer trucks loaded with contraband cigarettes as they moved across the country.

The Federal government is seeking forfeiture of approximately $18.5 million in addition to the following accomplishments that have already occurred:

Western District of Virginia

Twelve individuals and two companies were named in a 32-count indictment returned in the Western District of Virginia. The indictment alleges that the defendants traveled to Virginia to purchase untaxed cigarettes, and then transported the cigarettes to California without paying the taxes owed in either State. During the course of the conspiracy, the indictment alleges the defendants purchased approximately 108,084,000 cigarettes (9007 cases) for approximately $8,922,200.00, with a retail value of approximately $18,574,035.00, and avoided approximately $4,701,654.00 in California cigarette taxes. The named defendants, all residents of California, include:

VICKEN I DJEREDJIAN, aka Vick Gregg, Vick Deere, Age 30
AKOP CHICHYAN, aka Jack Chichyan, Age 31
MNATSAKAN GRIGORIAN, aka Miatskan Zakevich Grigoryan, Mike Grigoryan, Age 37
MIRAKYAN MASIS, Age 55
RAFIK ASATRYAN, aka Rosik ASATRYAN, Age 45
RUBEN ISRAELYAN, aka Ruben Hovahnniysan, Age 47
ARMEN GRIGORYAN, Age 26
GEORGIY GRIGORYAN, aka Georgiy Vladimirovich Grigoryan, Age 25
SEROB BOYADZHYAN, aka Serb, Age 33
MANVEL ISKANDARYAN, aka Bear, Age 44
ALBERT ASATRYAN, Age 46
AZAT STEPHANYAN, Age 20
GRAND DISTRIBUTION COMPANY, USA, INC.
PRO-CAL TRANSPORTATION, INC., aka Grace Way

All defendants are charged with conspiracy to possess and transport contraband cigarettes. Each of the defendants is also charged in various counts of actual possession and transportation of contraband cigarettes. All charges carry a penalty of up to five years imprisonment and a fine of $250,000 for the individuals and a fine of $500,000 for the companies.

The indictment also seeks the forfeiture of a monetary amount of $18,574,235, which is alleged to have been the gross proceeds obtained by the defendants as a result of their criminal conduct, and the forfeiture of four residences, 14 vehicles, $190,906 in financial instruments, and seven financial accounts containing proceeds of the illegal enterprise that were traced directly by law enforcement officers. Property being sought for forfeiture to assist in the satisfying of the $18 million monetary amount includes an additional four residences, three vehicles, and 18 additional financial accounts.

Central District of California

Three persons were named in a 15-count indictment returned in the Central District of California and charged with conspiracy to possess and transport contraband cigarettes and launder money, possession and transportation of contraband cigarettes, and money laundering. The indictment alleges that the defendants trafficked more than 45,000,000 contraband cigarettes (3,750 cases) and laundered approximately $3.3 million. The money laundering charges carry a penalty of up to 20 years imprisonment and a fine of $500,000.00. Charged in this indictment are:

RENE KHAJA, Age 30
SUREN AMBARCHYAN, Age 28
HENRI MINASSIAN, Age 28

In a related investigation, ATF agents executed a search warrant today at Country Home Tobacco, a retail store located in Monterey Park, Calif., following the filing of two criminal complaints alleging cigarette trafficking against the following persons:

JOHN KAMAR, Age 35
MIKHAEL KAMAR, Age 39

Arrested today were:

VICKEN I DJEREDJIAN, aka Vick Gregg, Vick Deere, Age 30
AKOP CHICHYAN, aka Jack Chichyan, Age 31
MNATSAKAN GRIGORIAN, aka Miatskan Zakevich Grigoryan, Mike Grigoryan, Age 37
MIRAKYAN MASIS, Age 55
ARMEN GRIGORYAN, Age 26
GEORGIY GRIGORYAN, aka Georgiy Vladimirovich Grigoryan, Age 25
MANVEL ISKANDARYAN, aka Bear, Age 44
ALBERT ASATRYAN, Age 46
RENE KHAJA, Age 30
SUREN AMBARCHYAN, Age 28
HENRI MINASSIAN, Age 28
JOHN KAMAR, Age 35
MIKHAEL KAMAR, Age 39

U.S. Attorneys in Virginia and California commended the work of the law enforcement agencies participating in this investigation: ATF, IRS, California Board of Equalization (BOE), Virginia Alcohol Beverage Control Board, Roanoke Police Department, Botetourt County Sheriff's Department, Virginia State Police, and New York State Tax Authority, INS, and United States Marshals Service.
A Grand Jury indictment is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.

 

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