The owner of a Newark auto dealership and his father were arrested today and charged for allegedly using the dealership to launder what they thought were the illegal proceeds of cocaine sales, U.S. Attorney Fishman announced….
During the meeting, Teixeira Sr. told the agent that the contract would reflect a $9,000 down payment because a down payment of $10,000 would be “trouble.” Trades and businesses that receive more than $10,000 in coins or currency in one or more related transactions are required to file a 8300 Form with the IRS. Teixeira Sr. assured the agent that he would not file any paperwork and explained that the contract would falsely reflect that the automobile was financed though the agent planned to pay cash in full. Teixeira Sr. also explained to the agent that as the lien holder of the automobile, Teixeira Sr. would be able to claim the automobile if it were seized in connection with narcotics activities.
Later that day, the agent returned to the dealership with the $50,000. The agent completed the transaction with Teixeira Jr., whose father was not present. Teixeira Jr. falsified the automobile contract, indicating the car was financed. The agent also told Teixeira Jr. he sold cocaine, and Teixeira Jr. also assured him no paperwork would be filed.
The agent also told both Teixeiras that he wanted to put the car in his girlfriend’s name, which both agreed to do. When completing the transaction, Teixeira Jr. also indicated in the contract that the “girlfriend,” actually another undercover IRS special agent, had only paid $37,000 for the car.
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