ST. LOUIS -- Fourteen members of a criminal enterprise know as "The Hamed Organization," allegedly operating out of five St. Louis-area convenience stores, have been indicted on federal racketeering and multiple related charges, U.S. Attorney Catherine L. Hanaway and John Gillies, Special Agent in Charge, FBI-St. Louis, announced.
As far back as 2000, the conspiracy has involved bank fraud, receipt of stolen property, conducting an unlicensed money transmitting business, purchasing contraband cigarettes for resale, evading reporting requirement on exporting monetary instruments, wire fraud [image-nocss] and transporting monetary instruments and funds to avoid reporting requirements, according to the U.S. attorney's office.
"The indictment alleges that after generating money through these illegal activities, the members of this organization utilized couriers, who traveled from the United States to the Palestinian territories carrying cash, jewelry, cashier's checks and endorsed and unendorsed personal and business account checks," said Hanaway (pictured).
"This case illustrates the importance of law enforcement partnerships, intelligence sharing and cooperation we see every day in St. Louis through the work of our task forces. As a result of today's law enforcement actions, the activities of criminal elements in our community have been disrupted," added Gillies.
According to the indictment, the Hamed Organization is a criminal enterprise that operates primarily in the St. Louis and St. Louis County. Members and associates of the enterprise, many who are related to each other, raise and collect money through legal and illegal means for themselves and to transfer money to entities in the Palestinian territories.
According to the U.S. attorney's office, the enterprise owns and operates c-stores that they use to receive and sell stolen goods, such as infant formula, computers, Global Positioning System devices and cigarettes. The enterprise allegedly buys the stolen property at rates significantly below fair market retail value and sells the items through the c-stores at a large profit.
Additionally, as alleged in the indictment, the enterprise transferred real estate and businesses amongst its members as a means to generate cash from fraudulently obtained bank loans. They obtained the bank loans by falsifying citizenship status, total assets, misrepresentations of debt and asset ownership.
They allegedly operated out of the following c-stores: Regal Food I, Regal Food II, Ferguson Market, Prince Market and St. Louis Supermarket. Among the 14 indicted were Bassam Hisham Hamed, CEO of the enterprise; Ghandi Hisham Hamed, leader of the enterprise; and Said Jarabaa, leader of the enterprise.
Charges and maximum penalties: RICO conspiracy, 20 years prison and/or fines up to $250,000 or twice the gross profits/proceeds; bank fraud, 30 years prison and/or files up to $1 mullion; transporting monetary instruments to avoid reporting requirement, 20 years prison and/or fines up to $500,000 or twice value of funds; conspiracy to structure in order to avoid reporting requirements, five years prison and/or fines up to $250,000; conspiracy to receive stolen goods, five years prison and/or fines up to $250,000 ; receiving contraband cigarettes, five years prison and/or fines up to $250,000.
The charges set forth in an indictment are merely accusations, and each defendant is presumed innocent until and unless proven guilty, said the U.S. attorney's office.
Lawyer Rob Lutfiyya, who has represented some of those indicted in business matters, told the St. Louis Post-Dispatch that he doubted the men had connections to terrorism. "They're hardworking guys," he said. "They're family guys. They're trying to make names for themselves." He said the men came to the U.S. as teens and still have family in the Middle East. "I'm sure they were sending money to support them," he said.
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