NY drug ring bust Queens home said to be hub for laundering 'coke' money
-In 16 years US$10M declared by travellers for suspected front company
Stabroek News
May 1, 2004
Drugs smuggled into the US in cans of ghee; US$10M in laundered money carried back to Guyana in luggage; and a Queens house under surveillance, are just some of the revelations in affidavits that led to the smashing of a multi-million dollar Guyanese drug ring last month.
The evidence gathered in the investigation which began back in 2002 will likely lead to extradition requests for local kingpins.
The primary affidavit was filed by a US drug enforcement officer in support of a request for a warrant to search the New York home of a Guyanese couple, Sabrina and Arnold Budhram.
Affidavits were also filed for the arrests of 11 other individuals. The Budhrams were subsequently charged on April 5 with laundering narcotics proceeds from cocaine smuggling for numerous Guyanese drug organisations, including one run by her brother who is identified. They were arraigned and now await trial.
The Budhrams are alleged to have been at the hub of the ring by collecting the proceeds of drugs sold in the US and dispatching these to Guyana under the cover of a fictitious textile company.
The couple has links to a family in Guyana that runs an auto sales business.
The affidavit names this family as "The ****** Organisation" and states that it smuggled approximately $10 million in drug proceeds since 1986 disguising the funds as money belonging to Sabena Manufacturing & Sales Inc said to be located at the Budhrams' home address.
Special agent with the United States Immigration and Customs Enforcement (ICE), Todd Nickerson on April 1 obtained the warrant to search the premises described as 14 Drew Avenue, First and Second Floor, Floral Park, New York.
The Budhrams lived there with their minor child and rented the basement to tenants. Surveillance of their home was conducted by law enforcement officers off and on from October 2002 through December 2003.
Nabbed courier squeals
The law enforcement officers got the first big break in their case when on August 28, 2002 a confidential witness was arrested at JFK International Airport arriving on a flight from Georgetown for possession of more than 12 kgs of cocaine.
Following the arrest the witness confessed and stated that the ring imported 17 kilogrammes of cocaine from Guyana to the US in December 2001 and that he/she was aware of the couple who laundered the proceeds of narcotics sales by numerous Guyanese drug organisations including the one run by the woman's brother, whose names and those of all the other relatives of the woman were provided.
The witness revealed that following a successful cocaine smuggling trip in December 2001 they went to the couple's premises with Sabrina Budhram's former relative. Budhram directed them to wait in the living room and she came back with a wad of cash which represented payment for narcotics smuggled by the witness.
This information led to the arrest of Campbell who after a jury trial before US District Judge, Alleyne R Ross was found guilty of charges relating to conspiracy to import and distribute more than five kilogrammes of cocaine. She is currently awaiting sentencing.
Another informant was arrested in April 2002 for conspiracy to distribute cocaine and disclosed that between October 2001 and April 2002 the ring brought proceeds of four prior cocaine shipments to Sabrina Budhram's premises and also provided the names of three other individuals who took drugs there.
On three occasions, November 14, 2002, January 8, 2003 and January 9, 2003 agents observed one of the persons, whose name was provided by the second informant, dropping off bags at the couple's premises. There were also telephone records revealing that this person was in contact with the couple and further a third informant stated that in 2001 they had been involved in a drug organisation with two of the woman's brothers and transported drug proceeds from the United States to Guyana.
Another informant also provided other damaging information to the authorities against the couple. A number of these trips were observed by agents who had the house under surveillance. The fifth informant in 2003 stated that between March and July 2003 they brought approximately 25 kgs of cocaine on consignment from one of the woman's brothers in Guyana. They paid $3,500 per kilogramme for the cocaine and that the payment was made to Sabrina Budhram.
They also state that they dropped off $600,000 in drug proceeds for delivery in Guyana and were charged a 3% fee by the "****** organisation" for their money transmittal services.
US$240,000 hidden in cereal boxes
To facilitate their money laundering activities the organisation used a fictitious company, Sabena Manu- facturing & Sales Inc also known as SABENA F/X Ltd. The affidavit states that to date law enforcement offices have been unable to find evidence of any legitimate business activity by SABENA.
Since 1986, people, including one of the woman's brothers made trips in and out of the US declaring more than US$10 million to the United States Customs Service on behalf of Sabena.
An example was given on August 23, 2002, when an outbound enforcement examination conducted by customs at JFK Airport revealed US$240,000 in US currency, "concealed in cereal boxes and powdered drink mix boxes in luggage belonging to [to one of the woman's brothers whose name was provided]. When approached by Customs Inspectors on the aircraft jet way and questioned about the currency, [the brother], immediately produced a Customs Form 4790 for the amount of US$240,000. He stated that he was transporting the money on behalf of SABENA and he was released and warned that in future he must present the form before he boards the aircraft.
On October 9, 2002 a similar incident occurred involving the same brother at the same airport involving US$104,410. He declared it on behalf of SABENA and an auto sales company in Guyana.
A review of the United States Department of the Treasury, Treasury Enforcement Communications System (TECS) records indicates that in or about between 1986 and 2002, the said brother made approximately 70 trips to or from the US in which he declared money on behalf of SABENA. TECS also indicates that during that same time period, individuals filed a currency transaction report in connection with bank deposits on behalf of SABENA and indicated that Arnold Budhram was its operations manager.
A further review of the records indicate that in excess of 15 different individuals have made trips during which they declared money on behalf of SABENA in or about 1986 and 2002. Surveillance of the couple's premises indicated that no legitimate business activities took place there. The authorities were unable to find any evidence of legitimate business activity by SABENA, including any evidence of buying, selling, manufacturing, importing or exporting of goods or raw materials.
During the October 9, 2002 interview the woman's brother had stated that SABENA was a textile company which imported raw materials and had been owned by his family for 25 years.
And a review of bank records from JP Morgan Chase & Co for SABENA indicates that all statements, records and cancelled checks generated were mailed to the couple's premises as recently as March 5, 2004.
And the commercial signature card for the account lists one of the relatives as president of SABENA, Sabrina as secretary and vice-president, and another relative as director.
It is believed that a significant portion of the narcotics proceeds brought to Sabrina and Arnold Budhram were laundered through SABENA using an unlicensed money exchange company (the "Exchange") based in Manhattan.
The woman or her brothers would drop off the currency at the Exchange, which would then generate a cheque made out to SABENA. The cheques would then be deposited into SABENA's account and eventually funds would be wired overseas or sometimes used to pay bills from American Express cards issued to members of the family and their associates.
On May 29, 2003 one of the brothers' wives arrived in the US and declared $300,000 Canadian currency on behalf of SABENA. The woman was interviewed on May 31, 2003 when she was about to go back to Guyana and was found to be carrying C$8,000 which she declared on behalf of SABENA.
In addition to transporting money on behalf of SABENA, there is evidence that Arnold Budhram may be involved in structuring financial transactions on behalf of SABENA. The example was given of a cheque being drawn on the couple's personal checking account (the Budhram Account) on February 1, 2003, with JP Morgan and signed by Arnold was deposited into the SABENA account. Just five days later on February 6, 2003, a US$16,400 deposit, comprising US$6,000 cash
US$10,400 cheque drawn on the Budhram account, and signed by Arnold, was deposited into SABENA. These deposits continued for a while as from February 2003 through June 2003 cheques totalling US$63,300 all drawn on Budhram account and signed by Arnold were deposited into the SABENA account.