ROSLYNN R. MAUSKOPF, United States Attorney for the Eastern District of New York, and JOHN C. VARRONE, Special Agent-in-Charge, New York Office of the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement ("ICE") announced today the unsealing of a complaint charging nine defendants with participating in the Kumar Organization's unlicensed money transmitting business or "hawala," which transmitted in excess of $32 million out of the United States between January 2001 and the present. The government's complaint also charges two members of the organization and a tenth defendant in a scheme to create false Indian passports for the purpose of smuggling illegal Indian immigrants into the United States.

Earlier today law enforcement agents executed search warrants at seven locations in Queens, New York, used by the Kumar Organization and seized business ledgers, wire transfer records, and copies of fraudulent Indian passports.

According to the complaint, this joint investigation by the ICE offices at JFK and Newark/Liberty Airports was triggered in mid-2002, in part, when several anonymous letters were received at banks and the Internal Revenue Service alleging that the Kumar Organization had established fictitious business accounts, in names including Asha Jewelers and Parkash Trading, at various banks in Queens for the purpose of conducting an unlicensed money transmitting business. The letters alleged that the organization collected large sums of cash from customers in the community, deposited the funds into these accounts, and then promptly wired the money to overseas bank accounts. The government's investigation over the next year confirmed the accuracy of these allegations.

According to the complaint, the organization's leader, RAKESH KUMAR, conducted business from three locations -- Music Land, located in a basement at 74-22 37^th Avenue, Jackson Heights, New York; Five Star, located at 120-19 Jamaica Avenue, Richmond Hill, New York, and Baba Indian Grocery, located at 124-12 Jamaica Avenue, Richmond Hill, New York. PARMOD KUMAR, RAKESH's brother, managed the day-to-day operations at Music Land, a primary currency drop-off location. HARJIT SINGH served as the organization's bookkeeper. PREM KUMAR managed Baba Grocery, another currency drop-off point. KARAN SINGH TALWAR operated several import/export businesses in Jackson Height and wired funds overseas for the Kumar Organization. JAGHOMAN SINGH SETHI, KULBIR SINGH SETHI, and SHIV CHARAN SHARMA worked for TALWAR, collecting currency, depositing it into accounts they controlled, and then wiring the funds abroad. The investigation disclosed that the organization wire transferred funds -- more than $32 million -- to bank accounts in Singapore, Hong Kong, Latvia, Canada and India. Some of the foreign accounts merely served as temporary, or transit, accounts. The organization's primary transit account was opened in the name of City World Wide, in Hong Kong. Since 2001, the organization wired more than $5 million to this account.

The government alleged that Kumar's organization also converted currency into monetary instruments, such as money orders and checks, and sent these funds via courier service outside the United States. According to the complaint, on a single day, March 25, 2002, Customs Inspectors at Newark/Liberty International Airport intercepted KUMAR's courier packages destined for Canada containing approximately $100,000.

Finally, the investigation disclosed that members and associates of the Kumar Organization were engaged in a large-scale fraudulent document scheme, involving the falsification of genuine Indian passports to be used to smuggle illegal aliens into the United States. Among other means, the organization smuggled blank Indian passports into the United States, hidden in DVD cases shipped to Music Land. The complaint also charges that AMAR SINGH, who operates Amar Arts, at 44-07 69^TH Street, Woodside, New York, altered Indian passports and created false Indian driver's licenses.

In announcing the arrests and seizures, United States Attorney ROSLYNN R. MAUSKOPF stated, "We simply cannot permit the unregulated and unlicensed operation of currency transmitting businesses, particularly in these troubling times. In this case, a staggering amount of money -- more than $32 million -- was sent from the United States to bank accounts around the world, and our investigation is continuing to determine where and to whom these funds were destined. The defendants' unlawful activity also included a large-scale document fraud scheme designed to enable illegal aliens to enter the United States. This office will enlist all necessary resources and work with our partners in law enforcement to protect our borders and to search out and close down unlawful money remitting operations wherever we find them."

Special Agent-in-Charge JOHN C. VARRONE stated, "This successful investigation marks the end of an illegal, albeit sophisticated, illicit money transfer organization. It has ended their operations involving fraudulent identity documents and the illegal movement of large amounts of money out of the United States."

If convicted of conspiring to conduct an unlicensed money remitting business, RAKESH KUMAR, PARMOD KUMAR, PREM KUMAR, HARJIT SINGH, AMARJIT SINGH, KARAN SINGH TALWAR, JAGHOMAN SINGH SETHI, KULBIR SINGH SETHI and SHIV CHARAN SHARMA each faces a maximum sentence of five years imprisonment, three years supervised release, and a fine of $250,000. In addition, in a separate civil forfeiture action filed today, the government is seeking to forfeit funds on deposit in ten bank accounts at Astoria Federal Savings Bank, North Fork Bank, and Fleet Bank based, in part, on the money remitting charge.

If convicted of conspiring to commit passport/identification fraud, RAKESH KUMAR, PARMOD KUMAR and AMAR SINGH each faces a maximum sentence of fifteen years imprisonment, three years supervised release, and a fine of $250,000. ⁽¹⁾

The eight defendants who were arrested today have preliminary appearances scheduled this afternoon before United States Magistrate Judge Lois Bloom, at the U. S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.

The government's case is being prosecuted by Assistant United States Attorneys Sean Haran, Colleen Kavanagh and Sharon Volckhausen.

Address: 110-24 63^rd Avenue

Forest Hills, New York

DOB: 3/01/65

Name: AMAR SINGH

Name: KULBIR SINGH SETHI (Fugitive)