February 9, 2007

Eight face criminal charges as authorities dismantle Bay Area retail crime ring and seize more than 20 truckloads of stolen merchandise
Suspects allegedly used Internet to resell merchandise stolen from major retailers

OAKLAND, Calif. - Eight Bay Area residents face federal charges today following a series of enforcement actions yesterday by federal agents and local police targeting a criminal ring that allegedly purchased merchandise stolen from major retailers, sold the goods over the Internet, and shipped them to other states.

The arrests stem from a nearly two-year investigation by U.S. Immigration and Customs Enforcement (ICE), the Internal Revenue Service (IRS), the U.S. Department of Agriculture, the Federal Bureau of Investigation, and the Oakland Police Department into a ring that bought stolen goods, such as baby formula and medical supplies, from individuals who stole these products from large retailers, including Safeway, Target, Walgreens, and Wal-Mart. The stolen goods were allegedly resold through a Hayward company called Rosemont Wholesale.

During yesterday's operation, agents executed search warrants at six locations in the East Bay, including two Oakland convenience stores - Kings Food Market and 1 Star Discount Store - and at Rosemont Wholesale's warehouse in Hayward. At the warehouse, investigators estimate that they seized more than 20 tractor-trailer loads of merchandise. The recovered products include cases of vitamins, cold medicine, other over-the-counter pharmaceuticals, baby formula, and hygiene products.

According to the criminal complaint, the ring received the merchandise from a network of people who stole it from major retailers. The owners of the two Oakland convenience stores allegedly bought the goods from these individuals at prices far below their actual value. Some of the products were sold at the convenience stores, but much of the merchandise was allegedly transferred to Rosemont Wholesale's warehouse. Searches of the dumpsters outside the warehouse during the investigation turned up thousands of discarded security tags and bar code labels from major retailers. The complaint states that Rosemont Wholesale advertised retail merchandise over the Internet on the website www.wholesaleramp.com .

"Schemes like this not only hurt legitimate businesses, they also expose a vulnerability in the American economy," said Charles DeMore, special agent in charge of the ICE office of investigations in San Francisco. "Perhaps even more troubling, the profits from these kinds of illegal enterprises are often funneled back into other kinds of criminal activity, which is why dismantling these schemes is a top ICE enforcement priority."

Those taken into custody yesterday in connection with the case are:

Hassan Swaid, 37, of Fremont, the suspected ringleader of the scheme and the president and owner of Rosemont Wholesale, Inc.;

Sufian Al-Khalidi, 45, of San Leandro, an employee of Rosemont Wholesale;

Wahidullah Ahmadi, 47, an employee of Rosemont Wholesale;

Mossleh Amari, 46, of San Leandro, an employee at Kings Food Market;

Nabil Munasar Al Zoqari, 23, an employee of 1 Star Discount Store;

Basheer Ammari, 23, of San Leandro, the son of Mossleh Amari.

All of the above individuals, who are scheduled for a preliminary hearing March 1, were released on $200,000 bond.

In addition to those arrested yesterday, two other defendants charged in the case are still being sought: Munasar Alzoqari, 51, the owner of Kings Food Market; and Mohammad Aldhufri, 24, an employee of 1 Star Discount Store.

"We are proud to assist our federal and local law enforcement partners in this investigation by using our financial investigative expertise to follow the illicit profits generated by such criminal organizations and to pursue appropriate charges," said Roger Wirth, special agent in charge for IRS Criminal Investigation. "We are united in our resolve to financially disrupt and eliminate criminal enterprises that prey on legitimate businesses for their ill-gotten gains, which ultimately end up coming out of the honest citizens' pockets through higher retail prices."

The defendants are accused in a two-count criminal complaint of conspiracy to commit mail fraud and conspiracy to engage in interstate transportation of stolen goods. The six who are currently in custody made their initial appearance in federal court in Oakland earlier today. The maximum statutory penalty for each count is five years imprisonment, a $250,000 fine, and three years of supervised release.

Fraud investigators for the retailers initiated their own investigation in 2005 and then alerted the Oakland Police Department about the possible theft scheme. The Oakland Police Department then referred the matter to ICE and IRS for further investigation. This case is being prosecuted by the United States Attorney's Office in the Northern District of California.

-- ICE --

U.S. Immigration and Customs Enforcement (ICE) was established in March 2003 as the largest investigative arm of the Department of Homeland Security. ICE is comprised of five integrated divisions that form a 21st century law enforcement agency with broad responsibilities for a number of key homeland security priorities.

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