October 23, 2013 at 9:32 PM
Car dealer to forfeit $1.5M, pay $250K fine for unreported sales
A used-car company has agreed to forfeit $1.5 million and pay a $250,000 fine over the way it handled cash transactions.
Zein Automobiles pleaded guilty in U.S. District Court in Seattle on Wednesday to a charge of failing to file a monetary transaction report.
Drug Enforcement Administration agents said the company, which runs Independence Auto Sales and Best Bet Auto Sales in Lynnwood and Everett, intentionally failed to report cash transactions of more than $10,000 to the IRS. They alleged that allowed drug traffickers to launder their profits by buying cars.
Agents raided the dealerships last month.
Seattle U.S. Attorney Jenny Durkan said in a written statement the case should serve as a warning to other businesses. As part of the plea deal, Zein is entering into a corporate-integrity plan to ensure similar violations don’t happen again.
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The Today File is a general news blog featuring real-time coverage of Seattle and the Northwest. It is reported by the news staff of The Seattle Times and edited by Assistant Metro Editor Nick Provenza.
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